Guide

Illinois AI Laws: Complete Guide for Businesses

A complete guide to the AI laws Illinois businesses must follow, including the Human Rights Act AI amendment (HB 3773), the AI Video Interview Act, and the Biometric Information Privacy Act. Covers who is covered, notice and consent rules, deadlines, and how to prepare.

Last updated June 20, 2026 · Ask a question about this topic →

Why Illinois Businesses Need to Pay Attention Now

Illinois has moved faster than most states on artificial intelligence in the workplace. Two AI-specific laws are already on the books, a third long-standing privacy law reaches a lot of AI use, and the newest amendment took effect at the start of 2026. Any company that hires, screens, or manages workers in Illinois is in scope.

The state's approach is employment-first. Rather than one sweeping statute that covers every industry, Illinois has layered targeted rules: one on AI in video interviews, one on AI that affects employment decisions, and a biometric privacy law that predates the current AI wave but applies squarely to face and voice analysis.

This guide breaks down each law in plain terms: who it covers, what it requires, when it takes effect, and the practical steps a business should take now. It is written for Illinois employers and the companies that serve them, not for lawyers.

Key Takeaway

Illinois is the second state, after Colorado, to pass a broad law on AI in employment decisions. If your business uses AI to hire, screen, promote, or manage people in Illinois, you already have legal obligations, and a bigger one took effect January 1, 2026.

The Illinois Human Rights Act AI Amendment (HB 3773)

House Bill 3773 amended the Illinois Human Rights Act and took effect January 1, 2026. It was signed by Governor Pritzker in August 2024. It is the centerpiece of Illinois AI employment law and applies to any employer with one or more employees in Illinois for 20 or more calendar weeks in a year.

The amendment does three core things. First, it bars employers from using AI that has a discriminatory effect on the basis of a protected class in employment decisions, including recruitment, hiring, promotion, renewal of employment, selection for training, discharge, discipline, tenure, and the terms or conditions of employment. Second, it bars using ZIP code as a proxy for a protected class. Third, it requires employers to notify employees and applicants when AI is used in those decisions.

A key point on scope: HB 3773 is an employment law, not a broad multi-industry AI statute. It does not impose Colorado-style high-risk-AI impact assessments across housing, lending, and healthcare. The two are often confused. In Illinois, the employment relationship is the trigger.

The Illinois Department of Human Rights was directed to issue rules on the form and timing of the required notice. Employers should track the final notice rules and build the disclosure into their hiring and HR workflows.

Key Takeaway

Effective January 1, 2026: Illinois employers may not use AI that produces a discriminatory effect on protected classes in employment decisions, may not use ZIP code as a stand-in for a protected class, and must notify workers when AI is used in those decisions.

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The AI Video Interview Act (820 ILCS 42)

The Illinois Artificial Intelligence Video Interview Act has been law since January 1, 2020, and it was one of the first AI hiring laws in the country. It applies to employers that ask applicants to record video interviews and then use AI to analyze them.

Before the interview, the employer must do three things: tell the applicant that AI may be used to analyze the video and assess fitness for the role, explain in plain terms how the AI works and the general types of characteristics it evaluates, and obtain the applicant's consent to be evaluated by the AI. An employer may not use AI to evaluate an applicant who has not consented.

Two further duties apply: the employer must limit sharing of the video to people whose expertise is needed to evaluate the applicant, and must delete the video, and instruct anyone who received it to delete it, within 30 days of an applicant's request.

Key Takeaway

In effect since January 2020: if you use AI to analyze video interviews, you must tell applicants, explain how the AI works, get their consent, limit who sees the video, and delete it within 30 days on request.

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The Biometric Information Privacy Act (BIPA)

The Biometric Information Privacy Act (740 ILCS 14) has been law since 2008. It governs how private entities collect, store, and use biometric identifiers such as fingerprints, faceprints, and voiceprints. AI tools that analyze faces in video, recognize voices, or scan other biometric traits fall within its reach.

BIPA requires a written policy with a retention and destruction schedule, written notice of what is collected and why, and the individual's written consent before collection. It also restricts selling or sharing biometric data.

What makes BIPA stand out is enforcement. It gives individuals a private right of action and sets statutory damages per violation, which has produced large class-action settlements. Any Illinois business deploying biometric or face- and voice-analysis AI should treat BIPA compliance as a priority, not an afterthought.

Key Takeaway

BIPA predates the AI wave but reaches a lot of AI: any system that uses faceprints, voiceprints, or other biometric identifiers needs written notice and consent. BIPA carries a private right of action and statutory damages, which makes it one of the most litigated privacy laws in the country.

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Who Must Comply

The Human Rights Act AI amendment applies to employers with one or more employees in Illinois during 20 or more calendar weeks of the year. The trigger is having Illinois workers, not where the company is headquartered.

The AI Video Interview Act applies to any employer that uses AI to analyze video interviews for positions based in Illinois or for Illinois applicants, including remote roles. Again, the location of the position or the applicant controls, not the employer's home state.

BIPA applies to private entities that collect biometric data from Illinois residents. A company does not need an Illinois office to be covered; serving or employing Illinois residents is enough.

The practical read for most businesses: if you hire, screen, or manage anyone in Illinois, or if your tools process biometric data from Illinois residents, assume all three laws are in play.

How to Prepare: Practical Steps for Illinois Businesses

Step 1: Inventory your AI. List every tool that touches a hiring or employment decision, including resume screeners, AI video interview platforms, predictive scoring, scheduling tools, and performance analytics. You cannot comply with rules you have not mapped.

Step 2: Add the required notice. Build a clear disclosure into your application and HR process that tells applicants and employees when AI is used in a decision about them. Generic language buried in a privacy policy is not enough.

Step 3: Fix consent for video interviews. If you use AI to analyze video interviews, confirm you are getting specific, informed consent before the interview, separate from general interview consent, and that you have a 30-day deletion process.

Step 4: Run a discriminatory-effect review. Ask your vendors whether their tools have been tested for disparate outcomes across protected classes, and document what you find. Remove ZIP code and close proxies from any model that influences employment decisions.

Step 5: Check biometric tools against BIPA. Any face or voice analysis needs a written policy, a retention and destruction schedule, written notice, and written consent.

Step 6: Update vendor contracts. Require your AI vendors to document how their systems work, support your notice and consent obligations, and stand behind bias testing.

Key Takeaway

Start with an inventory of every AI tool that touches a hiring or employment decision, then add notice, consent, and a bias review on top of it.

Federal Context

Illinois rules sit on top of a shifting federal picture. Congress has introduced AI bills that would create nationwide disclosure and accountability requirements, and federal agencies are updating existing rules to cover AI in hiring and lending.

Compliance with Illinois law does not guarantee compliance with federal requirements, and the reverse is also true. The safest approach is to meet the most stringent rule that applies to a given activity, which for Illinois employment decisions currently means the Illinois standard.

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Common questions

Frequently Asked Questions

What is Illinois HB 3773?

HB 3773 is an amendment to the Illinois Human Rights Act, signed in August 2024 and effective January 1, 2026. It prohibits employers from using AI that produces a discriminatory effect on protected classes in employment decisions, prohibits using ZIP code as a proxy for a protected class, and requires employers to notify workers and applicants when AI is used in those decisions. It is an employment law and applies to employers with one or more employees in Illinois for 20 or more weeks in a year.

Does the Illinois Human Rights Act AI amendment cover housing, lending, or healthcare?

No. HB 3773 is focused on employment decisions. It does not impose the broad, multi-industry high-risk-AI obligations found in the Colorado AI Act. The two laws are often confused. In Illinois, the employment relationship is the trigger for the AI amendment.

Do I need consent to use AI in video interviews in Illinois?

Yes. Under the AI Video Interview Act, in effect since 2020, an employer that uses AI to analyze a video interview must tell the applicant beforehand, explain how the AI works and what it evaluates, and obtain the applicant's specific consent. An employer may not use AI to evaluate an applicant who has not consented, and must delete the video within 30 days of a request.

How does BIPA apply to AI?

Illinois's Biometric Information Privacy Act (BIPA) governs faceprints, voiceprints, and other biometric identifiers. AI tools that analyze faces in video, recognize voices, or scan biometric traits fall within it. BIPA requires written notice, written consent, and a retention and destruction schedule, and it carries a private right of action with statutory damages, which has produced large settlements.

Does a business need an Illinois office to be covered?

No. These laws follow the worker, the applicant, or the resident, not the company's headquarters. If you employ or screen people in Illinois, or process biometric data from Illinois residents, you can be covered even if your business is based in another state.

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