Following the passage of amendments to the Illinois Human Rights Act (IHRA) enacted by House Bill 3773, the Illinois Department of Human Rights has released draft regulations detailing the use of Artificial Intelligence (AI) in employment. The bill amends the Illinois Human Rights Act (IHRA) effective January 1, 2026, mandating that employers provide notice whenever AI facilitates employment decisions.
Defining AI and Covered Decisions
The draft regulations provide broad definitions that capture a wide range of modern HR technologies. “Artificial Intelligence” is defined as a machine-based system that infers how to generate outputs, such as predictions, recommendations, or decisions that influence physical or virtual environments. This explicitly includes “Generative AI,” which can simulate human-produced content like text, images, or audio.
The regulations apply whenever AI is used to influence or facilitate a “covered employment decision.” This term is comprehensive, encompassing:
- Recruitment and hiring
- Promotion and tenure
- Discharge and discipline
- Selection for training or apprenticeship
- Terms, privileges, or conditions of employment
New Notice Requirements
Under the draft rules, an employer must not use AI in any covered employment decision unless they provide specific notice to employees and prospective employees. This requirement applies regardless of whether the AI use has a discriminatory intent or effect.
When Notice is Required
Notice is generally required for activities such as:
- Using computer-based assessments (games or puzzles) to measure skills, personality, or culture fit.
- Screening resumes for specific patterns or terms.
- Analyzing facial expressions, word choice, or voice data in interviews.
- Using AI to target job advertisements to specific groups.
Notably, standard office software (e.g., word processors, spreadsheets, calculators) does not trigger this requirement unless it is used to infer outputs that influence employment decisions.
Timing and Distribution
The draft regulations stipulate precise timing for these notices:
- Prospective Employees. Notice must be included as part of the job notice or posting.
- Current Employees. Notice must be provided annually and within 30 days of adopting a new or substantially updated AI system.
Employers must provide this notice through all applicable means, including employee handbooks, conspicuous physical postings, intranet/website postings (with a conspicuous link on the homepage), and within job postings.
Content of the Notice
To be compliant, the notice must be written in plain language and include:
- The product name, developer, and vendor of the AI system.
- The specific employment decision the AI influences.
- The purpose of the system and the categories of data collected (e.g., scoring resumes, analyzing video).
- The job positions the tool is used for.
- A point of contact for questions.
- Instructions on how to request a reasonable accommodation.
Next Steps for Employers
While these regulations are currently in draft form, they signal a clear direction for compliance expectations in Illinois. Employers should consider the following actions:
- Audit Current Tools: Review all software used in recruitment and performance management to determine if it meets the definition of AI or Generative AI.
- Assess Vendor Transparency: Contact software vendors to obtain necessary details, such as the product developer’s name and the specific data categories processed, to prepare for potential notice requirements.
- Draft Preliminary Notices: Begin developing templates for notices that include the required elements, ensuring they are accessible and written in plain language.
- Monitor Regulatory Updates: Stay informed on the finalization of these rules to ensure timely compliance.
