Article provided by our partners at WFJ Law Firm and The Compliance Center
Artificial Intelligence (“AI”) laws are here. As of January 1, 2026, Illinois amended its anti-discrimination laws to prohibit employers from using AI to discriminate against employees based on a protected class and prohibit employers from using zip codes as a proxy for protected classes within AI models. Illinois employers must now notify employees if they use AI to make any employment-related decision. This notification requirement applies regardless of how big or small a role AI plays in an employment-related decision. Employers must disclose their use of AI to employees when using AI to make any of the following employment-related decisions:
- Hiring
- Recruitment
- Promotion
- Discipline
- Discharge
- Renewal of employment
- Selection for training or apprenticeship
- Tenure
- Terms, privileges, or conditions of employment
If you are wondering what counts as “AI,” be warned, it is defined broadly. AI is defined to mean a machine-based system that uses data it receives to make predictions, recommendations, or decisions that influence real or virtual environments (e.g., an AI tool used to screen and filter job applications). The definition of AI also includes “generative artificial intelligence” that uses an automated computing system to produce answers which simulate human-produced content after receiving a prompt from a person (e.g., Grok, ChatGPT, and Copilot).
Where does this leave Illinois employers? The Illinois Department of Human Rights will issue rules providing more detail about when notice is required, how it must be delivered, and the applicable timeframes. Employers should keep an eye out for that guidance and consider reviewing their current HR processes in the meantime. If you are using AI in any part of your employment decision-making process, now is a good time to make sure you understand how these changes apply to you.
Please contact the Compliance Center if you have any questions or need assistance with updating your employee Handbook or internal policies.