Illinois employers would need to provide notice to employees and prospective employees when artificial intelligence (AI) is used “to influence or facilitate” hiring or promotion decisions under new draft regulations unveiled by the Illinois Department of Human Rights (IDHR) to implement the state’s ban on AI discrimination set to take effect on January 1, 2026. While the rules are in draft form, they signal the regulatory direction the IDHR will take and the types of new compliance obligations employers in the state will face as emerging technology develops.

• The Illinois Department of Human Rights unveiled draft rules for implementing Illinois’s new ban on AI discrimination in employment, clarifying potential notice and recordkeeping obligations for employers regarding their use of AI.
• The draft rules would apply broadly to all employers under the Illinois antidiscrimination law and would necessitate notice whenever AI is involved in covered employment decisions, regardless of whether it leads to unlawful discrimination.
• Under the draft rules, required notifications would need to include specific information such as the AI product’s name, the employment decisions it affects, its purpose, the data it collects, targeted job positions, and contact details for inquiries.

The draft rules, “Subpart J: Use of Artificial Intelligence in Employment,” implement changes to the Illinois Human Rights Act (IHRA) that were made under Illinois House Bill (HB) 3773, a 2024 law that...

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