Illinois governor sets up an AI Cabinet to advise on AI risks and possible state regulation

Illinois Governor JB Pritzker signed Executive Order 2026-07 on 22 September establishing the Illinois Artificial Intelligence (AI) Cabinet, a cross-sector group that will assess the risks AI poses to the safety of Illinois residents, according to the governor's office. The cabinet will advise state government on preparing for and responding to AI-related incidents, on safeguarding public assets and infrastructure such as public buildings, water systems, education systems and information infrastructure, and on further steps to strengthen AI safety and accountability. It is also asked to evaluate the feasibility of possible state regulatory actions, including conditioning data-centre tax incentives, permits or operational approvals on safety, accountability and transparency standards; addressing the energy burden AI data centres place on the Illinois grid and ratepayers, including through PJM Interconnection; building AI safety and accountability standards into state procurement and contracting; and assessing whether a strict-liability framework for AI-caused harm is appropriate. Members will include experts from academia, law, ethics and governance alongside senior leaders from state agencies including the Department of Innovation and Technology and the Illinois Emergency Management Agency; the governor said members would be announced in the coming weeks. The order follows the Artificial Intelligence Safety Measures Act (SB 315), signed in July, which takes effect on 1 January 2027.

What it means for business: no new obligations; data-centre operators, AI developers and state suppliers in Illinois may want to watch the cabinet's recommendations, which could feed into permit, procurement and liability proposals.