Illinois governor JB Pritzker recently signed into law legislation that makes AI bias in the hiring process a violation of the Illinois Human Rights Act.

Under HB 3773, signed Aug. 9, employers in the Prairie State could face civil rights claims if their use of artificial intelligence tools in hiring and other employment decisions have a discriminatory effect. It prohibits the use of AI systems that may result in bias against color, race, sex, age or any other characteristic protected by Illinois legislation.

“Under the new rules, an employer cannot use AI that has the effect of subjecting employees to discrimination based on a protected class with respect to, e.g., recruitment, hiring, promotion, discharge, discipline, or the terms, privileges, or conditions of employment,” Gabrielle Martin of Lay firm Squire Patton Boggs wrote in The National Law Review.

The rule, which applies to any person employing one or more employees within the state, also requires that employers disclose when they are using AI with respect to “recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms, privileges, or conditions of employment.”

Unlike recent recent legislation in Colorado in Colorado, the rule does not mandate routine bias audits.

A blog post by George Bellas of law firm Bellas & Wachowski advises employers of the following implications:

Compliance. Non-compliance with the new AI regulations can result in legal challenges and penalties. It’s critical that businesses review their current AI tools and practices to ensure they meet the new standards. This may involve working with legal and technical experts to audit AI systems.

Training and education. Employers should consider training their HR teams and decision-makers on the implications of using AI in employment decisions. Understanding both the potential benefits and risks of AI is crucial in navigating this new legal landscape.

Monitoring and adaptation. As AI technology continues to evolve, so too will the regulations surrounding its use. It’s important for businesses to stay informed about any further changes in legislation and to adapt their practices accordingly.