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This new Illinois law presents a significant compliance challenge for companies using artificial intelligence in employment. As the adoption of AI technology continues at a breakneck pace, governments are struggling to keep up by adopting new laws and regulations. The new Illinois law is just one example of trying to implement guardrails on the use of AI in the employment context to help with hiring, promotion, discipline, termination, and other employment activities. Other states will be looking to Illinois’ new law, which may spur yet more legislation relating to AI. In the meantime, employers in Illinois will need to gear up to conduct thorough audits to determine whether their use of AI tools does not inadvertently lead to discrimination. 

The broad scope of the law’s AI definition and the prohibition on discriminatory effects, rather than just intent, presents a significant compliance challenge for employers. Unlike other state laws, such as the Colorado Artificial Intelligence (AI) Act, the Illinois law does not offer exemptions or carve-outs for specific types of AI. This means employers will likely want to conduct thorough impact assessments or bias audits to ensure their AI tools do not inadvertently lead to discrimination