Illinois takes AI on with a Head On Approach with HB 3773

The Illinois Human Rights Act has been amended through HB 3773 to regulate employers’ use of AI, effective January 1, 2026. This new law makes it unlawful for employers to use AI in ways that discriminate based on protected classes or use zip codes as proxies for such classes. Employers must also notify employees when AI is used in various employment processes. The Illinois Department of Human Rights will establish rules for these notifications.

Employers should prepare for compliance by understanding their AI tools’ limitations, ensuring ethical design, training users on anti-bias laws, using AI for lower-risk tasks, and maintaining human oversight in decision making processes. Monitoring ongoing legislative and regulatory developments is crucial to avoid penalties and litigation.

Legislation passed and published by Illinois State Legislature. August 09, 2024. [Open Source]