AI Regulation Hub

Illinois

Illinois regulates AI primarily in employment. The Illinois Human Rights Act makes it a civil-rights violation for employers to use AI in employment decisions where the AI has the effect of subjecting employees to discrimination on the basis of protected classes; ZIP codes may not be used as a proxy. Employers must also notify employees of AI use.

Key provisions

Illinois Human Rights Act β€” AI in employment

In force

Civil-rights violation for an employer to use AI in recruitment, hiring, promotion, training, discharge, discipline, tenure or other employment terms where the AI has the effect of subjecting employees to discrimination on the basis of protected classes.

ZIP code as proxy β€” prohibited

In force

It is unlawful to use ZIP codes as a proxy for protected classes when AI is used in employment decisions.

Employee notice

In force

Employer must notify an employee when the employer uses AI for the covered employment purposes β€” screening, ranking, performance assessment, promotion recommendation or disciplinary support.

IDHR rule-making power

In force

Illinois Department of Human Rights authorised to adopt rules necessary for implementation and enforcement, including on when notice is required, time period and method of notice.

Detailed overview

Illinois regulates AI primarily in the employment context. The Illinois Human Rights Act makes it a civil-rights violation for an employer to use AI in recruitment, hiring, promotion, training, discharge, discipline, tenure or other employment terms where the AI has the effect of subjecting employees to discrimination on the basis of protected classes. It is also unlawful to use ZIP codes as a proxy for protected classes.

The Illinois rule is important because it does not require a separate comprehensive AI Act to create AI compliance duties. If an employer uses AI to screen candidates, rank applicants, assess employee performance, allocate training, recommend promotion or support disciplinary decisions, the employer must ensure that the AI does not create discriminatory effects under the Human Rights Act.

Illinois also requires notice. An employer must notify an employee when the employer uses AI for the covered employment purposes described above. The Illinois Department of Human Rights is authorised to adopt rules necessary for implementation and enforcement, including rules on when notice is required, the time period for notice and the method of notice.

Penalties and remedies arise under the Illinois Human Rights Act enforcement system. Violations may lead to civil-rights charges, investigation, administrative proceedings, corrective measures and other remedies available under Illinois anti-discrimination law.

Practical requirements & details

Sourced from the Illinois Human Rights Act as amended to cover AI in employment, enforced by the Illinois Department of Human Rights.

Covered employment decisions

  • Recruitment, hiring, promotion, training, discharge, discipline, tenure or other employment terms.

Prohibitions

  • AI use in employment with the effect of subjecting employees to discrimination on the basis of protected classes.
  • Use of ZIP codes as a proxy for protected classes.

Notice

  • Employer must notify an employee when AI is used for covered employment purposes.
  • IDHR may adopt rules on when notice is required, time period and method.

Penalties

  • Remedies arise under the Illinois Human Rights Act enforcement system β€” civil-rights charges, investigation, administrative proceedings, corrective measures and other anti-discrimination remedies.

See also the federal-level entry for the United States, which covers the broader US AI regulatory framework (executive orders, NIST AI Risk Management Framework, sectoral regulators, and US-wide federal initiatives).

United States β€” federal AI framework

Ready to launch legally?

Book a 30-minute consultation. We'll map your licensing path and tell you exactly what's required, in plain language.