(The Center Square) – An employment law expert is advising Illinois employers to take a new state law seriously as it reshapes how artificial intelligence can be utilized in the workplace.
Effective Jan. 1, 2026, the Illinois Human Rights Act will be amended to prevent employers from using AI in a discriminatory manner, including using an individual’s ZIP code as a proxy identifier for characteristics. The law also requires notice to be sent when AI is being used in processes related to recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge or conditions of employment.
Last year, a report by AI-powered recruitment platform Jobscan found that nearly all Fortune 500 companies now use AI tools to track applications, through the use of applicant screening software.
Alex Reich, a partner at Saul Ewing and an expert in employment law, said a patchwork of AI regulations around the country will be a challenge for many companies.
“We have certain states, New York, Colorado and now Illinois and I’m sure to be more in the future, that enacted laws and employers, particularly multi-state employers, have to be cognizant of the rules of each jurisdiction that they have employees in,” said Reich.
The law defines AI as 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.”
Reich said the way that it is written, Illinois’ law is extremely vague.
“The way the Illinois law is drafted, it includes ChatBox, so it technically is not thinking for itself, it is compiling information, so the definition of AI in this Illinois law is very broad,” said Reich.
In addition, employers in the state who use AI in interviews must adhere to the Illinois Artificial Intelligence Video Interview Act that was passed in 2020. It requires the disclosure of the use of AI and obtaining permission to do so.
