Hunton Employment & Labor Perspectives

While artificial intelligence can help streamline employment decisions, employers should be aware of emerging regulations that provide protections to employees from biases that may arise through the use of AI in employment decisions.

In 2020, in response to concerns about the potential for bias in AI hiring tools, Illinois passed the first laws in the nation (since joined by Maryland, Colorado, New York City, California, and others) designed to regulate the use of AI in employment decisions with the “Artificial Intelligence Video Interview Act.”  That Act, which Illinois began to fully enforce in February 2026, requires employers to notify applicants before they interview if AI will be used to evaluate their video interview or otherwise assess their fitness for the position.

Now, the Illinois Department of Human Rights has amended the Illinois Human Rights Act with “Use of Artificial Intelligence in Employment” regulations to further control the use of AI in employment.  This amendment became effective January 1, 2026. 

These regulations require employers to provide notice to applicants and employees when AI is used with respect to most employment decisions, including recruiting, hiring, promotion, discipline, and termination. Such notice must, in part, identify the AI tool used and explain what decisions it may affect, in addition to providing contact information for questions about accommodations and other general questions about the employer’s use of AI in employment.

Consistent with Title VII and other state law protections, the regulations prohibit the use of AI when it results in a disparate impact on protected groups or other unlawful discrimination.  They also prohibit the use of an applicant’s or employee’s biographical information, such as race or zip code, to reject an applicant in the context of recruiting, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure or terms, privileges, or conditions of employment.  The rules also require employers to keep records relating to AI use in employment decisions, including records of notices and disclosures, for 4 years from the date of the employment decision.

Illinois employers should consult with legal counsel to explore compliance steps with respect to these regulations.  They should also consider inquiring about any formal validation conducted on AI tools that might uncover hidden bias.  Employers in all states should continue to monitor any further state, federal, or local laws or ordinances related to the use of AI in employment.