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Effective Jan. 1, 2026, the Illinois Human Rights Act will be
amended to prevent employers from using AI in a discriminatory
manner, including using an individual’s ZIP code as a proxy
identifier for characteristics. The law also requires notice to
be sent when AI is being used in processes related to
recruitment, hiring, promotion, renewal of employment, selection
for training or apprenticeship, discharge or conditions of
employment.
Last year, a report by AI-powered recruitment platform Jobscan
found that nearly all Fortune 500 companies now use AI tools to
track applications, through the use of applicant screening
software.
Alex Reich, a partner at Saul Ewing and an expert in employment
law, said a patchwork of AI regulations around the country will
be a challenge for many companies.
“We have certain states, New York, Colorado and now Illinois and
I’m sure to be more in the future, that enacted laws and
employers, particularly multi-state employers, have to be
cognizant of the rules of each jurisdiction that they have
employees in,” said Reich.
The law defines AI as a “machine-based system that, for explicit
or implicit objectives, infers, from the input it receives, how
to generate outputs such as predictions, content,
recommendations, or decisions that can influence physical or
virtual environments.”
Reich said the way that it is written, Illinois’ law is
extremely vague.
“The way the Illinois law is drafted, it includes ChatBox, so it
technically is not thinking for itself, it is compiling
information, so the definition of AI in this Illinois law is
very broad,” said Reich.
In addition, employers in the state who use AI in interviews
must adhere to the Illinois Artificial Intelligence Video
Interview Act that was passed in 2020. It requires the
disclosure of the use of AI and obtaining permission to do so. |
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