Illinois recently updated its employment law, the Illinois Human Rights Act to prohibit discriminatory uses of AI. Artificial intelligence as defined by the amendment will cover generative artificial intelligence, not just traditional AI. The amendments are set to take effect on January 1, 2026.

AI is defined to include outputs that can simulate human-produced content, including short answers, essays, diagrams, art, videos and songs. Employers will be prohibited from using AI in a discriminatory way in the employment context. This includes in recruitment, hiring, promotions, and discipline. Discrimination is that which is based on protected classes or use of zip codes “as a proxy for protected classes.”

Companies also will need to give employees notice if they are using AI for employment purposes. These include as noted above, for recruitment, hiring, promotion, and discipline. The Illinois Department of Human Rights charged with adopting regulations for, among other things, notice timing and process.

Putting It Into Practice: This law joins others that seek to regulate company’s use of artificial intelligence, including in Colorado and New York City. As companies develop their AI policies, this new law is a reminder to think now about procedures and mechanisms for avoiding discrimination when using the tools.