Illinois Amends the Human Rights Act to Limit the Use of Predictive Analytics (1/1/26)

Gov. J.B. Pritzker signed House Bill 3773, also known as the “Limit Predictive Analytics Use” bill. The bill amends the Illinois Human Rights Act by adding certain uses of artificial intelligence, including generative AI (GenAI), to the long list of actions by covered employers that could constitute civil rights violations.

The amendments made by HB 3773 will take effect Jan. 1, 2026, and add two new definitions to the law.

According to the amendments, AI means “a machine-based system that, for explicit or implicit objectives, infers, from the input it receives, how to generate outputs such as predictions, content, recommendations, or decisions that can influence physical or virtual environments.”

The definition of AI includes GenAI, which has its own definition: “an automated computing system that, when prompted with human prompts, descriptions, or queries, can produce outputs that simulate human-produced content, including, but not limited to, the following: 1) textual outputs, such as short answers, essays, poetry, or longer compositions or answers; 2) image outputs, such as fine art, photographs, conceptual art, diagrams, and other images; 3) multimedia outputs, such as audio or video in the form of compositions, songs, or short-form or long-form audio or video; and 4) other content that would be otherwise produced by human means.”
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AI Regulation Continues to Grow as Illinois Amends Its Human Rights Act
Jackson Lewis via SHRM Online | Aug 2024
 

Read the text of the measure

Effective Date: 1/1/2026

Law Articles

Workplace actions covered by this AI discrimination prohibition specifically call out recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms, privileges, or conditions of employment.
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H.B. 3773 does not provide a specific enforcement scheme.  However, under existing law, individuals may seek to enforce violations of the Illinois Human Rights Act by filing a charge with the Human Rights Commission or through a private right of action, via a civil complaint filed in Illinois Circuit Court.   The amendment expressly grants authority to the Illinois Department of Human Rights to adopt rules necessary for the implementation and enforcement of the law.  Some of the key issues these rules might be expected to cover include the requirements for providing notice and whether Illinois will adopt a definition of discrimination specific to the context of algorithmic discrimination.  As written, H.B. 3773 provides a blanket ban on using AI tools that subject individuals to discrimination based on the protected classes identified in the Illinois Human Rights Act.
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However, unlike the AI laws in Colorado and New York City, Illinois’s does not provide detailed guidance regarding affirmative steps employers are required to take to address discriminatory outcomes, such as bias audits, AI impact assessments, and implementing risk management systems.
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Although the amendment is brief, compliance with its requirement may prove complex. For example, the law’s definition of “artificial intelligence” is broad and does not include exemptions such as those found in the Colorado AI Act. The law also focuses on the outcome of the use of artificial intelligence and not the intent insofar as the law states that the use of artificial intelligence “has the effect of subjecting employees to discrimination” – in which case, it would prohibit a disparate (i.e., disproportionate) impact on protected classes even if there is no discriminatory motive. Further, while the law does not specifically require a risk management policy and program, impact assessments or bias audits – which are required under other laws like the Colorado AI Act and/or New York Local Law 144 – companies may still need to engage in such activities in order to identify when they are using artificial intelligence and to ensure it does not lead to discrimination.
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Illinois employers should pay close attention to the new disclosure requirements in Illinois’ new AI law, effective January 1, 2026, and closely monitor activity relating to clarifying guidelines issued by the Illinois Department of Human Rights. Additionally, Illinois employers would be well-advised to review their current use of AI in employment decisions in order to ensure compliance with both the new law and their existing non-discrimination obligations.
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