Catherine R. Locallo, Robbins Schwartz, Chicago
312-332-7760 | Email Catherine R. Locallo
Tech Transparency: IHRA Now Requires Disclosure of AI Use in Recruitment and Other Employment Efforts
P.A. 103-804 was signed into law on August 9, 2024, with a delayed implementation date of January 1, 2026. The Act amends the Illinois Human Rights Act (IHRA) to require that employers provide notice if they are using artificial intelligence (AI) with respect to recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or other terms, privileges, or conditions of employment.
The Act adds a definition under the IHRA for AI: “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.” 775 ILCS 5/2-101(N). It also includes “generative artificial intelligence,” which is defined under the IHRA as “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. 775 ILCS 5/2-101(O).
The Act also prohibits an employer from using AI that has the effect of subjecting employees to discrimination on the basis of protected classes under IHRA or to use ZIP codes as a proxy for protected classes under the IHRA.
The Illinois Department of Human Rights (IDHR) was charged with adopting necessary rules on the circumstances and conditions that require notice, as well as the time period and means for providing notice. IDHR recently shared a draft version of the rules that provides employers insight on expected compliance measures. See proposed 56 Ill.Admin. Code §2520.900, et seq. (Subpart J: Use of Artificial Intelligence in Employment). As of December 23, 2025, the rules were not yet formally published for public comment and are therefore subject to change.
Key Provisions Included in the Draft Rules
Application. The draft rules apply to employers, as defined in the IHRA, as well as their agents, including recruiters and other third parties acting on an employer’s behalf.
When Notice Is Required. Notice is required when an employer uses AI to influence or facilitate a covered employment decision, including recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms, privileges, or conditions of employment. Some examples include
- using computer-based assessments or tests to make predictive assessments, measure skill, personality traits or fit of applicants or employees, or to screen, evaluate, categorize and/or recommend prospective or current employees
- using AI in directing certain job advertisements or recruiting materials to targeted groups, areas or populations
- screening résumés for particular patterns or terms
- analyzing facial expression, word choice and/or voice in online interviews, videos or interview transcriptions
- analyzing data acquired from third parties regarding prospective or current employees
Timing of Notice. If notice is required, employers must provide notice to current employees annually or within 30 days of adopting a new or substantially updated AI system. For prospective employees, the notice must be included in any job posting.
Manner of Notice. Notices must be posted (1) in employee handbooks or manuals; (2) in a conspicuous location on the employer’s physical premises where notices are usually posted; (3) in a conspicuous location on the employer’s intranet or external website where notices are customarily posted, which must also be accessible through a conspicuous link on the homepage of the employer’s external website; and (4) with any job notice or posting.
Content of the Notice. The notice must include
1. the name of the AI product and its developer and vendor, if applicable;
2. the employment decisions the AI system will influence or facilitate (e.g., recruitment, hiring, discipline, etc.);
3. the purpose of the AI system and the categories of personal information or employee data collected or processes by the system;
4. the types of job positions for which AI will be used;
5. a point of contact at the employer for questions about the AI system and its use;
6. the right to request reasonable accommodation and instructions on how to request it; and
7. the statutory language found in 775 ILCS 5/2-102(L).
In addition, notices need to be made available in the languages commonly spoken in the employer’s workforce, and reasonably accessible to employees with disabilities.
Recordkeeping Requirements. Employers must preserve notices, postings, and disclosures regarding AI and records of such use for a period of four years.
In consideration of the draft rules, employers who use AI in connection with employment decisions (or plan to use AI in the future) should begin preparing for compliance with the law and implementing rules.
For more information about employment and labor law, see EMPLOYMENT DISCRIMINATION (IICLE®, 2026). Online Library subscribers can view it for free by clicking here. If you don’t currently subscribe to the Online Library, visit www.iicle.com/subscriptions.