Alert to Illinois Employers – If You Use Artificial Intelligence in Employment Decisions, Inform Your Employees and Make Sure It Is Not Providing Discriminatory Results.

Starting January 1, 2026, Illinois employers using Artificial Intelligence (AI) in any employment decision, should be aware that use of AI, including generative AI, that leads to a discriminatory result is prohibited. In 2024, the Illinois Legislature adopted amendments to the Illinois Human Rights Act (Public Act 103-0804), prohibiting employers from using AI in a discriminatory manner under Illinois House Bill (HB) 3773. Those amendments took effect on January 1, 2026. 

The amendments do not prohibit the use of AI by employers. But, the amendments set out that when it comes to any employment decision relating to “recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms, privileges, or conditions of employment”, use of AI to assist such a determination that has the effect of subjecting employees to discrimination on the basis of a protected characteristic or uses zip codes as a proxy for protected classes is prohibited, even if such discrimination is unintentional.  

The amendments additionally require an employer that utilizes AI to provide notice to its employees. While it is not clear yet what form the notice should take, or when such notice should be given, the amendments authorize the Illinois Department of Human Rights to adopt further rules to enforce the new amendments, including rules on the circumstances and conditions that require notice, the time period for providing notice, and the means of providing notice.

The new rules have not yet been published for public comment, but employers should start considering their use of AI, how it may impact any employment decisions and inform employees of any such use.