Center for Practical AI

CPAI Policy Brief Pack · North Carolina

Nonpartisan AI issue briefs, with North Carolina law.

10 two-page summaries across 5 issue areas. Each condenses a full, sourced CPAI research guide. Print this pack or save it as a single PDF to hand to an office. This edition adds an In North Carolina section to each brief, describing state law and pending legislation as of August 19, 2026.

A nonpartisan resource

The Center for Practical AI is a nonpartisan 501(c)(3) nonprofit. We provide education, research, and analysis, and we offer briefings and testimony on request. We do not endorse candidates or lobby for or against specific legislation. Everything here describes the evidence and the current landscape — the policy choices are yours.

Education & Schools

What the evidence shows about AI in classrooms — how students' use of it changes learning, and how prepared the adults in the room are to teach that difference.

Education & AI literacy

Safe AI Use

The same AI tool produces opposite outcomes depending on how it is used — and usage guidance is largely absent while adoption is near-universal.

What’s happening

AI assistants are now in daily use across work, school, and home. The evidence increasingly shows that the outcome — whether AI use builds capability or erodes it — depends less on how much people use it than on how.

What the evidence shows

In a randomized trial of about 1,000 students, unrestricted GPT-4 raised practice performance 48% but left those students 17% worse on a later unassisted exam; a version redesigned to give hints instead of answers eliminated the harm. A separate set of randomized studies found that people who used AI mainly for direct answers underperformed afterward, while those who used it for hints showed no deficit. One positive result, one negative — both randomized. The brief's credibility rests on presenting both.

Well-designed AI tutoring can roughly double learning gains over conventional instruction. The common thread across the evidence is design and usage mode, not access alone.

Where it reaches constituents

Students, workers, and families are adopting AI universally while usage guidance lags. Roughly three in four knowledge workers already use AI at work, and most received no training — so the habits that determine whether AI helps or harms are being formed by default, not design.

The current legal & regulatory landscape

The EU AI Act's Article 4 AI-literacy obligation has been in force since February 2025 — the first legal AI-literacy mandate. There is no comparable federal AI-literacy requirement in the United States. North Carolina's AI Strategic Roadmap commits to foundational AI-literacy training across all 100 counties by 2028.

In North Carolina

NCDPI released its Generative AI Guidebook in January 2024, making North Carolina the fourth state education agency in the country to issue AI guidance; in September 2025 it became the first state partner in the AI Innovation Index, which runs twice-yearly staff and student surveys disaggregated by district and school. Both are agency initiatives rather than statutory requirements. Senate Bill 640 (2025-26), which would have directed the State Board to adopt K-12 AI instruction standards, did not advance out of Senate Rules. The state's AI Strategic Roadmap, released July 1, 2026, commits to foundational AI training across all 100 counties.

Considerations policymakers are weighing

  • ·How AI-literacy programs define "literacy" — tool mechanics versus the usage habits and evaluation skills that the evidence links to outcomes.
  • ·Whether learning products disclose whether they are designed to give hints or answers.
  • ·How programs measure outcomes (durable capability) rather than attendance.

Full evidence & citations: cp-ai.org/policymakers/north-carolina/briefs/safe-ai-use

Educators & professional learning

Preparing Educators to Teach AI Use

Teachers are being asked to supervise a technology whose effect on learning depends entirely on how students use it — and the guidance they receive is thinnest for exactly that job.

What’s happening

Student use of AI for schoolwork has risen sharply in three years while formal guidance for the teachers supervising it has moved far less. The guidance that does exist concentrates on the teacher's own productivity and on detecting AI-written work. Almost none of it addresses the job the evidence says decides the outcome: teaching students to use AI in ways that build capability instead of replacing it.

What the evidence shows

A nationally representative survey of 2,069 public K-12 teachers fielded in February and March 2026 found 82% receive no formal guidance on applying AI tools to their work. The pattern inside that number is the point: “no guidance” rates were highest for the student-facing uses — 69% for one-on-one instruction and tutoring, 71% for coaching their own practice — and lowest for producing worksheets and assignments, at 47%. Guidance is most available where AI saves a teacher time, and least available where it touches a student. (Survey commissioned by a foundation that promotes AI adoption in K-12; fieldwork was conducted on a probability-based national teacher panel.)

Separate national polling of 806 sixth- through twelfth-grade teachers describes what the training that does occur actually covers. Across all of them, only 11% say “how to respond if you suspect a student's AI use is detrimental to their well-being” was covered in any AI training or information their school provided — the least common topic asked about, below detecting AI-generated student work (18%) and responding to suspected misuse (15%). Teachers' own top-ranked priority was guidance on using AI tools effectively, and that was the most commonly covered topic at 29%. On the student side, more than 80% of students report their teachers did not explicitly teach them how to use AI, and 30% of teens say a teacher has ever discussed how to use AI safely.

This matters because the instructional evidence identifies teacher design as the variable that decides the outcome. In a randomized trial of roughly 1,000 high school students, unrestricted GPT-4 raised in-session performance 48% but left those students 17% worse on a later unassisted exam; a version whose safeguards were written by two of the school's own math teachers eliminated that harm entirely. And in a two-year randomized trial across 18 middle schools, an AI tutor deliberately configured to coach rather than give answers produced gains resembling the same platform without AI — because 96% of students tried it, but the median student messaged it on only a third of the days they practiced, and in only 17% of the sessions where they made a mistake. The tool was built correctly. Nothing taught the students, or the adults around them, to use it that way.

Where it reaches constituents

Teachers in every subject and grade, and the students they supervise. Because the effect of student AI use turns on usage mode rather than access, the adult best positioned to change the outcome is the classroom teacher — and that is the role current guidance addresses least. The gap is also uneven: district-level AI training reached 67% of low-poverty districts in fall 2024 against 39% of high-poverty districts, and nearly all of it was optional.

The current legal & regulatory landscape

Federal Executive Order 14277 (April 2025) directs the Secretary of Education to prioritize existing discretionary grant funds for educator AI training and to support professional development for educators across subject areas. It creates no new appropriation and requires nothing of states or districts. At least 27 states had issued K-12 AI guidance as of August 2025; that guidance is advisory in every case reviewed, and several state documents say so explicitly.

A much smaller number of states have legislated anything about educator AI training, and one has gone furthest on what that training must look like. Maryland's Artificial Intelligence Ready Schools Act, signed May 26 and effective June 1, 2026, requires the state education department to provide professional development to educators and school leaders that is “sufficient in duration and quality” and substantively covers effective use, privacy, security, academic integrity, and means of avoiding overdependence — delivered either during the regular workday as designated professional-development time or as a course eligible for licensure-renewal credit. The duty runs to the department to offer it, not to the individual teacher to complete it. The same Act requires every local school system to adopt an AI policy within 120 days of the department's guidance and to designate an AI coordinator. Idaho and Hawaii have enacted measures including training provisions, Hawaii's with a $5 million pilot. No rigorous evaluation of an AI-specific educator training program with measured student outcomes appears to exist: a Stanford review screened more than 800 papers and identified 20 high-quality causal studies, none of them evaluating AI teacher professional development.

In North Carolina

North Carolina's Department of Public Instruction named this function two years ago. Its Generative AI Guidebook (January 2024) “strongly advocates for educators to undergo professional development focused on both utilizing generative AI professionally and guiding students,” and recommends initial training with guided practice followed by a practice period of at least four to six weeks. The guidebook is advisory. No North Carolina statute or State Board policy requires AI training for educators.

Two pending bills approach it from opposite directions. House Bill 1161 (2025-26) Part II would require middle-school computer science instruction covering proper AI use and identifying AI-generated content, and appropriates $500,000 to DPI for 2026-27 — obligations on curriculum, with no accompanying requirement to prepare the teachers delivering it; it is in House Appropriations. House Bill 301 (2025-26) Part V would direct DPI to partner with NC State's Friday Institute to produce 10 hours of self-paced online modules by June 30, 2027, which all teachers in local school administrative units, charter schools, and laboratory schools would complete by June 30, 2028, with a report to the Joint Legislative Education Oversight Committee by December 15, 2028. H301 passed the House 106-6 and the Senate 48-0 in different forms; a conference committee was appointed June 23-24, 2026. No appropriation is identified in the bill analysis.

Considerations policymakers are weighing

  • ·Whether educator AI training addresses the instructional mediation of student AI use, or is bounded by tool mechanics and academic-integrity policing — the two areas the national data show currently dominate.
  • ·How the format of any training requirement compares with what the professional-development research associates with measurable effect. A review of 35 rigorous studies identifies content-specific focus, coaching, collaboration, modeled practice, and sustained duration; NCDPI's own guidance recommends a four-to-six-week practice period. Short asynchronous module formats are the most common approach and the least studied.
  • ·Whether a training requirement is paired with evaluation, given that no rigorous evaluation of AI-specific educator professional development currently exists to copy.
  • ·How curriculum requirements for students are sequenced relative to preparation for the teachers who deliver them.

Full evidence & citations: cp-ai.org/policymakers/north-carolina/briefs/educator-ai-readiness

Learning & cognition

AI and Student Learning

AI can raise a student's performance while lowering their learning — and the gap between the two is invisible from inside the classroom.

What’s happening

Students use AI for schoolwork at scale, and the measurable question is no longer whether they use it. It is what happens to learning when they do. The research converges on an uncomfortable finding: performance during the task and capability after it can move in opposite directions, and the difference is decided by whether AI removes the effort or supports it.

What the evidence shows

The clearest result comes from a randomized trial of roughly 1,000 students across four practice sessions. Unrestricted GPT-4 access raised in-session grades 48%. On the subsequent unassisted exam, those same students scored 17% lower than classmates who never had access. A second version of the same model — instructed to give hints rather than solutions, and loaded with common student mistakes and the matching feedback — raised in-session grades 127% and produced essentially no effect on the unassisted exam. The harm was removed by pedagogical design, not by a better model.

Two 2026 field experiments sharpen this into a practical finding about structure. A two-year randomized trial across 18 middle schools, using an AI tutor explicitly configured to coach rather than answer, raised math achievement roughly 0.06 to 0.08 standard deviations over a school year — gains the researchers describe as resembling the same practice platform without AI at all. Their explanation is engagement: students rarely used it as a tutor. A companion randomized experiment with more than 6,000 students found AI's clearest benefit appeared specifically after mistakes, improving next-attempt correctness and shortening the path back to a correct answer. Delayed-test gains appeared only where AI was embedded in a mastery structure that forced engagement at the point of error.

The reason this is hard to manage locally is that no one in the room can feel it. A preregistered experiment found that any AI involvement impaired participants' memory a week later of which ideas had been their own. Preregistered studies with 2,691 participants found people systematically underestimate how much they rely on AI and overestimate what it saves them. Learning science supplies the mechanism: the practice conditions that feel most fluent reliably produce the least durable learning, and AI is very good at removing exactly the friction the learning was made of. Students themselves register the concern more than administrators do — 67% of surveyed youth agreed that more student AI use will harm critical thinking, against 22% of district leaders.

Where it reaches constituents

Students at every level, and the teachers and families who cannot see the trade-off from outside it. The cost shows up only once the tool is taken away, in what the student can still do without it. That is also why individual course-correction is unreliable here: the signal people would need in order to adjust is precisely the one the research says they do not receive.

The current legal & regulatory landscape

This is largely unregulated territory. Federal Executive Order 14277 (April 2025) directs existing discretionary funds toward AI education without new appropriation. State activity concentrates on advisory guidance for districts and on student-facing curriculum requirements. Standards for how AI learning products are designed or evaluated are almost entirely absent.

No federal or state requirement currently exists that a learning product disclose whether it is built to give hints or answers — the single design variable the randomized evidence identifies as decisive. The evidence base itself is also thin: a Stanford review screened more than 800 papers and found only 20 high-quality causal studies, most of them short-term and measured on practiced material.

In North Carolina

North Carolina's closest existing vehicle addresses attention rather than AI. Session Law 2025-38, ratified June 26 and signed July 1, 2025 by votes of 111-0 in the House and 45-1 in the Senate, created G.S. 115C-76.100, requiring every public school unit to prohibit wireless device use during instructional time with policies in place by January 1, 2026, and G.S. 115C-81.26, requiring instruction on social media and its effects on health — once in elementary school, once in middle, and twice in high school, beginning in 2026-27. The Governor's Advisory Council for Student Safety and Well-Being reported on December 11, 2025 that every public school unit has a plan in place.

Neither provision addresses AI. House Bill 1161 Part II, pending in House Appropriations, would add AI content to required middle-school computer science instruction. North Carolina has no statute addressing AI's effects on learning specifically.

Considerations policymakers are weighing

  • ·Whether AI learning products disclose the usage mode they are designed for — hints versus answers — since that is the variable the randomized evidence identifies as decisive.
  • ·Which outcome measures count in evaluating a learning tool: performance during use, or performance once the tool is removed.
  • ·Whether existing health-and-wellbeing instruction requirements are a natural home for AI usage content, or whether it belongs in computer science.
  • ·Support for longitudinal measurement, which barely exists — nearly all current studies are single-semester and measured on practiced material.

Full evidence & citations: cp-ai.org/policymakers/north-carolina/briefs/ai-and-student-learning

Health & Wellbeing

How AI use affects thinking and mental health, and where consumer products sit relative to clinical standards of care.

Cognition & wellbeing

Cognition & Digital Wellbeing

AI use reshapes thinking in measurable ways — and the best-replicated finding is that people cannot feel it happening.

What’s happening

As AI takes over more cognitive work — drafting, analyzing, remembering — researchers are measuring effects on the underlying human capacities. The findings are real but modest, immediate-term, and easy to misjudge from the inside.

What the evidence shows

In a randomized trial, experienced developers were about 19% slower using AI on their own mature codebases — while believing they were 20% faster. That perception gap is the best-replicated part of this literature. Preregistered work with thousands of participants finds people systematically overestimate what AI saves them and reach for it even when it saves nothing.

Learning research adds the mechanism: the practice conditions that feel most fluent tend to produce the least durable learning. AI is very good at removing exactly the friction the learning was made of. Effects are small-to-moderate and short-term — stated honestly, this is a call for measurement, not alarm.

Where it reaches constituents

Every worker, student, and agency now relies on AI for cognitive tasks. Because the effects are invisible to self-perception, individuals and institutions cannot course-correct on feel alone — which makes measurement a public question, not just a personal one.

The current legal & regulatory landscape

This is largely unregulated territory. The relevant policy surface today is research funding and measurement standards rather than restriction; several major studies in this area are publicly and privately funded.

In North Carolina

North Carolina's Session Law 2025-38, signed July 1, 2025, requires every public school unit to prohibit wireless device use during instructional time and requires instruction on social media and its effects on health four times across a student's K-12 career, beginning in 2026-27. It is an attention-and-device statute, not an AI statute. North Carolina has no measure addressing AI's cognitive effects specifically.

Considerations policymakers are weighing

  • ·Support for longitudinal research on AI's cognitive effects, which barely exists.
  • ·Measurement standards for "cognitive impact" claims, so products and programs can be compared honestly.
  • ·Procurement questions schools and agencies can ask about how a tool is designed to be used.

Full evidence & citations: cp-ai.org/policymakers/north-carolina/briefs/cognition-and-digital-wellbeing

Health & safety

AI Use & Mental Health

Millions turn to AI in distress, and consumer chatbots carry no professional duty of care — the gap between a wellness product and a clinician.

What’s happening

People increasingly bring emotional and mental-health needs to general-purpose AI and to purpose-built companion apps. Some of these interactions reach people in crisis — and the tools they reach are not clinicians and are not regulated as such.

What the evidence shows

OpenAI has disclosed that roughly 0.15% of ChatGPT's very large weekly user base shows explicit indicators of suicidal planning or intent in a given week — over a million people (a company-reported, classifier-based estimate, attributed to OpenAI's own reporting). The American Psychological Association has advised that treating AI as a therapist or companion "carries real risk and is not advised."

The clinical evidence is narrow: therapy-chatbot studies show small-to-moderate short-term effects that fade by a few months, mostly for structured, purpose-built tools with clinician oversight — not consumer chatbots. Research on companion AI links intensive, self-disclosing, substitutive use to lower wellbeing, while also finding null effects at the average — a genuinely mixed picture.

Where it reaches constituents

Teens and adults in distress, and their families. Surveys find a majority of teens have used AI companions, and a meaningful share have turned to AI over people for serious conversations — often without knowing what the product is, or isn't, obligated to do.

The current legal & regulatory landscape

Character.AI litigation produced a May 2025 ruling treating a chatbot as a "product" for liability purposes, with settlements reported in January 2026 (terms undisclosed; no adjudicated causation). California's SB 243 (effective January 2026) sets disclosure, crisis-protocol, and minor-protection requirements for companion chatbots; Illinois restricts AI-delivered therapy; the FTC has opened a 6(b) study of companion chatbots (a study, not enforcement).

In North Carolina

Senate Bill 963 (2025-26) is pending in Senate Appropriations. It would require state licensing of health-information chatbots with applications reviewed by the Department of Justice, obligate covered platforms to detect and respond to emergency situations involving self-harm, require disclosure that a chatbot is not human, mandate annual third-party audits and breach reporting within 24 hours, and create civil penalties up to $50,000 alongside a private right of action. A predecessor, Senate Bill 624, did not leave Senate Rules in 2025. Separately, the Attorney General co-led 44 state attorneys general in August 2025 in a letter to AI companies regarding the protection of children.

Considerations policymakers are weighing

  • ·Disclosure requirements — whether a user is told they are not talking to a licensed professional.
  • ·Crisis-protocol standards for what a product must do when a user signals danger.
  • ·Age verification and minors' access.
  • ·What clinical-validation evidence should be required before a product may claim to provide "therapy."

Full evidence & citations: cp-ai.org/policymakers/north-carolina/briefs/ai-and-mental-health

Work & Economy

AI adoption at work, the training gap behind it, and what the labor data can and cannot yet show.

Workforce & economy

AI Proficiency & the Workforce

AI use at work has outrun training, and the fluency that helps the least-experienced most is reaching them last.

What’s happening

AI adoption at work has spread faster than almost any prior technology, while training has barely moved — leaving a gap between using AI and using it well. Meanwhile, the evidence on jobs is more nuanced than the headlines: mostly task change, with the first narrow employment signals only now emerging.

What the evidence shows

Company-reported surveys find about two-thirds of leaders would not hire someone without AI skills, while only 39% of AI users had received any training. The strongest randomized evidence shows AI raising productivity most for the least-experienced workers — about 35% in a field experiment with 5,000+ support agents. Employer-survey projections (WEF) estimate roughly 120 million workers are unlikely to receive the retraining they will need — a projection, not a measurement.

Where it reaches constituents

Workers at every level, and the employers and educators who train them. The equity finding — AI fluency helps the least-experienced most — means the training gap falls hardest on the workers with the least, unless programs reach them on purpose.

The current legal & regulatory landscape

The federal America's AI Action Plan (July 2025) includes worker-skilling programs, and Workforce Pell (effective July 2026) extends aid to short credential programs; the Digital Equity Act's capacity grants were terminated in May 2025. North Carolina's roadmap commits to credentialing 50,000+ residents in AI skills by 2028 — and notes the state cannot yet attribute layoffs to AI, because its reporting data was not built to capture it.

In North Carolina

Census Business Trends and Outlook Survey data analyzed by NC Commerce (published July 2026) found 18.9% of North Carolina businesses currently use AI, against 17.9% nationally — while 23.2% report employees using AI for work tasks. Employee use runs ahead of firm adoption. Among NC businesses using AI, roughly 10% report it replaced an employee task against 16.8% reporting it replaced existing software. Separately, an industry analysis using Lightcast data estimates 286,290 North Carolina tech jobs — about 61% of the state's tech workforce — are exposed to large language model technology. The state's AI Strategic Roadmap targets credentialing more than 50,000 residents in employment-enabling AI skills, and the roadmap itself recommends updating the state's WARN data collection to capture AI-related job losses, with a March 2027 deadline — an acknowledgment that the state cannot currently attribute any layoff to AI.

Considerations policymakers are weighing

  • ·How workforce programs reach the automation-exposed and least-credentialed workers who gain the most.
  • ·Whether "AI skills" funding measures durable capability or just enrollment.
  • ·The data infrastructure needed to know what is actually happening to jobs.

Full evidence & citations: cp-ai.org/policymakers/north-carolina/briefs/ai-proficiency-and-the-workforce

Rights & Fairness

Automated decisions about people — and the privacy rules governing the data those decisions run on.

Civil rights

Bias at Scale

A biased human decides one case. A biased system deployed statewide decides every case the same way — silently, and at scale.

What’s happening

Algorithmic decision-making now shapes outcomes in hiring, lending, healthcare, and the justice system. When these systems carry bias, the defining new feature is scale: one flawed model, applied to millions of decisions, in a way that is hard to see and can train the next system.

What the evidence shows

The documented cases are already sourced in CPAI's civil-rights guides: a risk-assessment tool that produced racially disparate false-positive rates; a health algorithm that under-referred Black patients because it used cost as a proxy for need; wrongful arrests from face recognition; a hiring tool scrapped after it penalized résumés containing the word "women's." The amplification point is concrete, not abstract: the same error, applied uniformly and invisibly across a whole population, with outputs that can become training data for the next model.

Where it reaches constituents

Anyone subject to an automated decision about a job, a loan, a benefit, or their liberty — disproportionately communities already least able to contest an opaque "the algorithm decided."

The current legal & regulatory landscape

New York City's Local Law 144 requires bias audits of automated hiring tools; Illinois and Colorado have enacted AI-in-employment and AI-accountability laws (Colorado's with a delayed effective date). In active litigation, Mobley v. Workday has let core AI-hiring discrimination claims proceed and conditionally certified a nationwide age-discrimination collective — with no finding of liability. The EEOC has issued and revised guidance in this area.

In North Carolina

North Carolina has no statute governing automated decision systems in hiring, housing, insurance, or criminal justice. It does have one bias-testing requirement already in force: Department of Insurance Bulletin 24-B-19, issued December 18, 2024, adopts the NAIC model bulletin and requires licensed insurers to maintain a written AI Systems Program with data governance covering bias analysis and minimization, third-party vendor due diligence, and a defined document set the department may demand during a market conduct exam. Enforcement has also been active: the Attorney General, with the U.S. Department of Justice and ten other states, sued six corporate landlords over algorithmic rent-setting in the Middle District of North Carolina, reaching a $7 million settlement with the state's largest landlord in November 2025 covering more than 25,000 North Carolina rental units. House Bill 1161 Part III, pending in House Appropriations, would require independent bias audits of automated employment decision tools and advance notice to affected applicants.

Considerations policymakers are weighing

  • ·Impact-assessment and independent-audit requirements for consequential automated decisions.
  • ·Transparency to affected individuals that an automated system was used.
  • ·Appeal and human-review rights.
  • ·Procurement standards for public-sector algorithms.

Full evidence & citations: cp-ai.org/policymakers/north-carolina/briefs/bias-at-scale

Privacy & data

AI & Data Protections

There is no comprehensive federal privacy law — so what happens to the data people put into AI depends on their zip code and the fine print.

What’s happening

People type sensitive information into AI tools that feel private but are company servers. That data can be used for training, retained, reviewed by humans, subpoenaed, breached, or sold — and the rules governing it are a patchwork.

What the evidence shows

In the New York Times copyright litigation, a federal court ordered OpenAI to hand over about 20 million de-identified consumer ChatGPT conversations in discovery — ordinary users' chats became evidence in a case they are not party to. "Anonymized" offers thin protection: a Nature Communications study estimated 99.98% of Americans could be re-identified from 15 demographic attributes. The FTC's amended COPPA Rule now requires separate parental consent before a child's data is disclosed to third parties, including for AI training.

Where it reaches constituents

Every person who uses an AI tool — and, acutely, children, patients, and anyone whose most sensitive data ends up in the least-protected place. The protection you get depends heavily on which state you live in.

The current legal & regulatory landscape

No comprehensive federal consumer-privacy statute exists; sector rules (HIPAA, FERPA, COPPA, GLBA) cover slices. About 20 states have comprehensive privacy laws in effect as of 2026; North Carolina does not. A newer layer of AI-specific state laws (Colorado, Texas, Illinois, California) is arriving alongside them.

In North Carolina

North Carolina has no comprehensive consumer privacy law; Senate Bill 757 did not leave Senate Rules and House Bill 462 stalled after a favorable committee substitute in April 2025. What the state has is a breach statute — the Identity Theft Protection Act, G.S. Chapter 75 Article 2A — which requires notice without unreasonable delay but sets no fixed deadline and does not reach collection, use, sharing, retention, or model training. Student data is governed by G.S. 115C-401.2, which predates generative AI and applies only to operators of products designed and marketed primarily for K-12 school purposes. The state has taken a clear position for its own workforce: NCDIT policy on publicly available generative AI, updated April 2026, prohibits employees from entering confidential state information or personal information into public AI tools, on the stated principle that "sharing information with a publicly available GenAI tool is considered a public release of the information."

Considerations policymakers are weighing

  • ·Baseline data rights that do not depend on the state a person lives in.
  • ·Rules for sensitive categories — genetic, biometric, health, and children's data.
  • ·Transparency about training use, retention, and human review of what users enter.

Full evidence & citations: cp-ai.org/policymakers/north-carolina/briefs/ai-and-data-protections

Safety & Fraud

Synthetic media, non-consensual imagery, and AI-enabled fraud against consumers.

Safety & integrity

Deepfakes & Non-Consensual Imagery

People cannot reliably "spot the fake" — detection is near chance — so the durable protections are legal and procedural.

What’s happening

AI can generate convincing fake images and video of real people, and it is being weaponized — including as non-consensual intimate imagery targeting students, women, and children. The common advice to "look closely and spot the fake" does not match the evidence.

What the evidence shows

A meta-analysis of 56 studies found pooled human accuracy at detecting deepfakes was 55.5% — statistically close to chance. Stated neutrally: education promising people can spot the fake is not supported by evidence; process-based verification and legal remedies are the better bet.

Where it reaches constituents

Students and schools facing AI-generated NCII incidents; victims who need fast removal and support; and the broader public navigating synthetic media.

The current legal & regulatory landscape

The federal TAKE IT DOWN Act (signed May 2025) criminalizes non-consensual intimate images including AI "digital forgeries"; its platform notice-and-removal obligations took effect May 19, 2026, with a 48-hour removal window and FTC enforcement now underway. Most states also have non-consensual-imagery laws, with a newer wave addressing AI-generated deepfakes specifically.

In North Carolina

North Carolina's law already covers AI-generated imagery. Session Law 2024-37, ratified July 2024 and effective December 1, 2024, passed the House 114-0 and the Senate 44-0. It amended G.S. 14-190.5A so that "image" includes a realistic depiction "created, adapted, or modified by technological means, including algorithms or artificial intelligence," carrying a Class H felony for adult defendants alongside a civil action with liquidated damages. It also created G.S. 14-190.17C, under which it is not a required element of the offense that the minor depicted actually exist — reaching wholly synthetic material. What state law does not do is impose any obligation on platforms; G.S. 14-190.5A reaches the person who discloses. The federal TAKE IT DOWN Act supplies the platform notice-and-removal duty. North Carolina also has no election-deepfake statute; House Bills 375 and 934 and Senate Bill 738 were all introduced in 2025 and none was enacted.

Considerations policymakers are weighing

  • ·Implementation oversight of platform notice-and-removal.
  • ·School response protocols for incidents involving students.
  • ·Support resources for victims.
  • ·Investment in verification infrastructure rather than "spot the fake" education.

Full evidence & citations: cp-ai.org/policymakers/north-carolina/briefs/deepfakes-and-ncii

Consumer protection

AI-Enabled Fraud & Voice Cloning

AI voice clones and synthetic identities are supercharging fraud against consumers — and older adults are losing the most.

What’s happening

Scammers now clone voices from seconds of audio, generate fake identification, and build convincing synthetic personas at scale. AI does not invent fraud — it lowers the cost and raises the believability, especially for impersonation and "emergency" scams targeting families and older adults.

What the evidence shows

The FBI's 2025 Internet Crime Report logged $20.9 billion in reported losses (up 26%) across more than a million complaints, and for the first time broke out a direct-AI category: 22,364 complaints totaling about $893 million. Adults 60+ reported roughly $7.7 billion, up 37%. The FTC reports a four-fold increase since 2020 in older adults losing $10,000 or more to impersonation scams. Because human deepfake detection is near chance, prevention rests on process — second-channel verification, a family safe word, and payment-method red flags.

Where it reaches constituents

Consumers and especially older adults and their families — the group reporting both the highest losses and the fastest growth. A judgment-based industry forecast projects AI-enabled fraud losses could reach $40 billion by 2027 (a projection, not a measurement).

The current legal & regulatory landscape

The FBI's IC3 provides the national reporting infrastructure; the FTC enforces impersonation rules. North Carolina's Executive Order 24 established a statewide AI Literacy and Fraud Prevention Training Program as state policy.

In North Carolina

The FBI's 2025 Internet Crime Report recorded 25,940 complaints from North Carolina — ninth nationally — and $431.6 million in losses, twelfth nationally. Victims aged 60 and older accounted for 5,942 of those complaints and $164.2 million in losses: roughly 23% of the state's complaints and 38% of its losses. North Carolina's telephone solicitation statute, G.S. 75-102, prohibits misrepresenting the origin of a call but contains no provision addressing AI-generated or synthetic voices. House Bill 936, which modernizes robocall consent standards and adds a prohibition on impersonating government officials, has passed both chambers in different forms and went to a conference committee in June 2026. The Department of Justice has an active enforcement program, Operation Robocall Roundup, and issued a consumer alert on AI voice cloning in January 2024. Executive Order 24 directs Commerce, NCDIT, DOJ and DPI to coordinate public AI literacy and fraud-prevention training.

Considerations policymakers are weighing

  • ·Reporting and data infrastructure so losses can be measured and traced.
  • ·Bank and telecom verification protocols that add friction to high-risk transfers.
  • ·Funding models for prevention education — and evaluation of what prevention actually works, since the canonical protective behaviors have not been rigorously tested.

Full evidence & citations: cp-ai.org/policymakers/north-carolina/briefs/fraud-and-voice-cloning

North Carolina bill statuses in this pack are stated as of August 19, 2026 and are descriptive only. CPAI takes no position on any pending measure.

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The Center for Practical AI is a nonpartisan 501(c)(3) nonprofit. We provide education, research, and analysis, and we offer briefings and testimony on request. We do not endorse candidates or lobby for or against specific legislation. Everything here describes the evidence and the current landscape — the policy choices are yours.