Effective January 1, 2026, Public Act 103-0804 will take effect in Illinois, which amends the Illinois Human Rights Act (“Act”). The amendment targets the use of AI in employment decisions. The article below will outline the Act’s main points.
New Definitions
The Act adds new definitions for “Artificial Intelligence” and “Generative Artificial Intelligence.”
New Civil Rights Violations
The Act will now make it a civil rights violation for an employer to use artificial intelligence (“AI”) in a broad class of employment decisions, including recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms, privileges, or conditions of employment, that have the potential to subject employees to discrimination on the basis of protected classes under the Act or to use zip codes as a proxy for protected classes.
It will also be a civil rights violation for an employer to fail to provide notice to an employee if artificial intelligence is used in any of the employment decisions outlined above.
The Illinois Department of Human Rights will oversee the enforcement of this amendment in accordance with its authority under the Act. The department will also adopt rules necessary for the implementation and enforcement of the new amendments, including the required notice, the time period for providing notice, and the means for providing notice.
Impact
Employers need to be mindful that using AI in employment decisions could have the effect of discriminating against certain protected classes. In other words, while an employer may not intend to discriminate, the use of AI could result in a disparate impact on certain individuals, which constitutes a form of discrimination. Therefore, employers should assess their current AI processes and consistently review and update them to ensure ongoing compliance with the Act.
For questions or guidance on how this legal development may impact your organization, please reach out to your GRSM attorney or the authors of this legal alert.