South Carolina — Federal AI Profile + State AI Laws (H 3058 digitally-forged intimate images 2025; S 28 AI-generated CSAM 2025): AI Compliance Requirements

South Carolina H 3058 (Act No. 37, signed by Gov. Henry McMaster May 12, 2025; effective on approval) created §§ 16-15-330 (definitions) and 16-15-332 (unauthorized disclosure of intimate images) and expressly covers "digitally forged intimate images" — images "generated or substantially modified using machine-learning techniques" that falsely depict an identifiable person. Intentionally distributing such an image without the depicted person's consent is a crime: a felony where done with intent to harm or for profit (first offense up to $5,000 and/or up to 5 years; subsequent up to $10,000 and 1–10 years with a 1-year mandatory minimum) and a misdemeanor for a first offense without that intent. Binds individuals and any business or platform that distributes such AI-generated/altered intimate images in South Carolina. Counsel should confirm the exact §§ 16-15-330/332 "digitally forged" definition, the penalty tiers, and the effective date against the enacted Act.

South Carolina S 28 (Act No. 57, signed May 22, 2025) created § 16-15-390 (obscene visual representations of child sexual abuse) which expressly provides that "it is not a required element of any offense under this section that the minor depicted actually exists" — covering AI/computer-generated and "morphed" child sexual abuse material even where no real child is depicted. Producing, distributing, possessing with intent to distribute, or knowingly possessing such material is a felony punishable by up to 10 years; the offense is added to the sex-offender registry (amending §§ 23-3-430/462). A companion bill, S 29 (morphed images), passed alongside, and the first arrests under the new statute occurred in October 2025. Binds individuals and any business or platform that creates or distributes such AI-generated material in South Carolina. Counsel should confirm the exact § 16-15-390 "actually exists" element, the felony class and sentencing, and the effective date against the enacted Act.

FTC Act § 5 applies to all South Carolina businesses using AI. South Carolina Unfair Trade Practices Act (SCUTPA, § 39-5-20) provides independent state enforcement. SC AG has authority to seek civil penalties and restitution for AI-driven deceptive practices in trade and commerce. Ensure AI systems disclose their nature, AI claims are truthful, and AI-driven pricing does not harm consumers.

South Carolina's manufacturing sector (BMW, Boeing, Michelin, Volvo) and aerospace companies use AI for hiring, worker monitoring, and safety systems. EEOC May 2023 guidance requires employers to test AI employment tools for disparate impact. BMW and Boeing South Carolina must ensure AI worker monitoring and hiring tools do not discriminate. South Carolina has a diverse manufacturing workforce — adverse impact analysis is essential.

Boeing South Carolina manufactures wide-body commercial aircraft (787 Dreamliner). AI systems used in aerospace manufacturing quality control, defect detection, and safety system testing at Boeing's North Charleston facility are subject to FAA oversight. Boeing must comply with FAA AI guidance on software in safety-critical aviation systems. Any AI integrated into aircraft systems requires FAA DO-178C and DO-330 compliance.

Monitor scstatehouse.gov for new AI legislation. Beyond the enacted H 3058 (Act 37 — digitally forged intimate images) and S 28 (Act 57 — AI-generated CSAM), South Carolina's comprehensive AI-transparency bill H 4623 was introduced but did NOT advance — South Carolina has no comprehensive cross-sector AI statute and no enacted election synthetic-media law as of June 2026; treat any such pending bill as not-law until confirmed signed. South Carolina's manufacturing and aerospace economy may drive AI employment and safety legislation.