Illinois has no single AI law, but as of October 20, 2026 two statutes matter to most businesses, and they run on different clocks. HB 3773 has made discriminatory or undisclosed AI use in employment a civil rights violation since January 1, 2026, even though the Illinois Department of Human Rights withdrew its draft notice rules in June. SB 315, the AI Safety Measures Act, was signed on July 6, 2026 and binds only the largest frontier AI developers, with filings from January 1, 2027 and independent audits from 2028. A handful of older Illinois laws on AI therapy, video interviews, biometrics and insurance claims also apply, so this guide sorts them by role.
Illinois AI laws at a glance
| Law | Who it covers | Status on October 20, 2026 |
|---|---|---|
| HB 3773 (Public Act 103-0804) | Employers with Illinois employees that use AI in employment decisions | In force since January 1, 2026; IDHR notice rules withdrawn |
| SB 315, AI Safety Measures Act | Large frontier AI developers (over $500 million revenue, models above 10^26 operations) | Signed July 6, 2026; effective January 1, 2027; framework and audits from January 1, 2028 |
| Artificial Intelligence Video Interview Act | Employers that use AI to analyze video interviews | In force since January 1, 2020 |
| HB 1806, Wellness and Oversight for Psychological Resources Act | Anyone offering AI-delivered therapy or psychotherapy | In force since August 2025 |
| SB 3114, Transparency in Downcoding Act | Health care payors that use automated claim downcoding | Signed July 2026; effective January 1, 2028 |
| Biometric Information Privacy Act (BIPA) | Private entities that collect biometric identifiers, including through AI tools | In force; damages rules narrowed in August 2024 |
Digital replica laws (HB 4875 and HB 4762) also apply to AI-generated voice and likeness, and are covered briefly below.
If you use AI on workers: HB 3773
Governor Pritzker signed HB 3773 on August 9, 2024. It amends the Illinois Human Rights Act (775 ILCS 5/2-102) and took effect on January 1, 2026. The Act defines artificial intelligence broadly, as a machine-based system that infers how to generate predictions, content, recommendations or decisions, and it expressly includes generative AI.
Subsection (L) of section 2-102 creates three civil rights violations:
- Discriminatory effect. An employer may not use AI that "has the effect of subjecting employees to discrimination" on the basis of a protected class. The test is effect, not intent.
- ZIP codes as a proxy. An employer may not use ZIP codes as a proxy for a protected class.
- Failure to give notice. An employer may not fail to tell an employee that it is using AI for the covered decisions.
The covered decisions are recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, and the terms, privileges or conditions of employment. Law-firm summaries say the Act reaches employers with one or more Illinois employees, with no small-employer exemption. Summaries say applicants are covered as well. The statutory notice text refers to "an employee," and the draft rules described below would extend notice to prospective employees.
The notice rules that were proposed and then withdrawn
The statute tells IDHR to write rules on when notice is required, the time period for giving it and the means. IDHR shared an informal draft in December 2025. It published a formal proposal in the Illinois Register on May 15, 2026, with a comment period to June 29 and a hearing set for June 10.
On June 2, 2026, IDHR withdrew and postponed the proposal and canceled the hearing. Its stated reason, as quoted by Ogletree Deakins, was that postponement was necessary to allow "continued collaboration with other state agencies." No law firm alert we found reports a refiled version as of October 20, 2026, more than four months later.
The withdrawal does not suspend the law. The three violations come from the statute, so they apply now. The withdrawn draft would have required notice within 30 days of adopting a new or substantially updated AI system, notice in job postings, a contact person and recordkeeping, but it never took effect and its details may change. Treat it as a preview, not a rule.
Enforcement and what the law does not require
HB 3773 adds no new enforcement system. Law-firm summaries say a worker files a charge with IDHR, which either dismisses it or brings a complaint before the Illinois Human Rights Commission, and the worker can opt out and sue in state court. Remedies in those summaries include actual damages and attorney's fees.
HB 3773 does not require a bias audit, an impact assessment or a public audit summary. That is a real difference from New York City's Local Law 144, which requires an independent bias audit within one year before an automated employment decision tool is used, public information about the audit and advance notice to candidates. Commentators describe Local Law 144 as procedural and Illinois as substantive: in Illinois, the discriminatory effect is itself the violation. A bias audit done for another jurisdiction may help show good faith, but it does not replace Illinois notice. Our bias audit guide explains what a defensible audit contains.
Older laws that still apply to AI hiring
The Artificial Intelligence Video Interview Act (820 ILCS 42), in force since January 1, 2020, applies when an employer asks applicants to record video interviews and uses AI to analyze them. Before the interview the employer must notify the applicant that AI may be used, explain how it works and what general characteristics it evaluates, and get consent. Videos may be shared only with people whose expertise or technology is needed, and must be destroyed within 30 days of the applicant's request. An employer that relies solely on AI analysis to decide who gets an in-person interview must also report race and ethnicity data to the state each year.
The Biometric Information Privacy Act can apply when an AI tool extracts face geometry, voiceprints or other biometric identifiers. It requires informed written consent before collection, with electronic signatures accepted, and private lawsuits are available. Under the August 2, 2024 amendment (SB 2979), a person can recover only once for repeat scans or disclosures, against statutory damages of $1,000 for negligent and $5,000 for reckless or intentional violations. Whether a given tool collects biometric identifiers depends on how it works, so ask the vendor in writing.
If you build frontier AI: SB 315
Governor Pritzker signed SB 315, the Artificial Intelligence Safety Measures Act, on July 6, 2026. It passed the House unanimously, and five senators voted against it. Every source we read counts Illinois as the third state after California and New York to regulate frontier developers directly, and we found no report of a fourth.
Who is covered
A frontier model is a foundation model trained with more than 10^26 integer or floating-point operations. A frontier developer trains such a model. A large frontier developer also had more than $500 million in gross revenue, counting affiliates, in the previous calendar year. Most duties fall on large developers, and law-firm alerts expect the group to include the best-known model labs. Companies that only buy or embed someone else's model are not covered, but they can use the developers' public reports in vendor due diligence.
What the Act requires, and when
Per Skadden, MoFo and Latham & Watkins summaries, the Act takes effect on January 1, 2027, with two later dates:
- January 1, 2027: large developers need a current disclosure statement on file with the Illinois Emergency Management Agency and Office of Homeland Security, and pay an assessment, to develop, deploy or operate a frontier model in Illinois in whole or in part.
- January 1, 2028: large developers must publish a frontier AI framework for managing catastrophic risk, review it yearly and publish material changes within 30 days.
- From January 1, 2028, or 90 days after a developer first qualifies if later: an independent third-party audit every year. The auditor must be independent and expert, and the developer must publish a redacted report within 30 days and send it to the Attorney General.
The Act also requires a transparency report before or when a new or substantially modified frontier model is deployed, and incident reporting within 72 hours to the state agency and the Attorney General, or within 24 hours to an appropriate authority when death or serious injury is imminent. Covered developers may not retaliate against employees who report violations, and large developers must offer an anonymous internal reporting channel. The sources we read do not agree on whether the transparency report, incident and whistleblower duties start in 2027 or 2028. Plan for January 1, 2027 unless the enrolled text says otherwise.
Only the Attorney General can enforce the Act, with civil penalties of up to $1 million for a first violation and up to $3 million for later ones. The Act has no private right of action.
Illinois, California and New York compared
| Feature | Illinois SB 315 | California SB 53 | New York RAISE Act |
|---|---|---|---|
| Effective date | January 1, 2027 (framework and audits 2028) | January 1, 2026 | January 1, 2027 |
| Large developer revenue test | Over $500 million | Over $500 million | Over $500 million |
| Critical incident report | 72 hours | 15 days | 72 hours |
| Annual independent audit | Yes, from 2028 | No | No |
| Maximum penalty | $1 million, then $3 million | $1 million | $1 million, then $3 million |
If you already comply with SB 53, Illinois adds the annual audit, a state disclosure statement and a 72-hour incident clock; New York already uses the same 72 hours. See our SB 53 explainer and New York AI law guide for those regimes.
TechNet opposed the audit provision. Its representative told a Senate committee on May 20 that subjective safety-compliance determinations without national standards were a concern. NPR Illinois reports that OpenAI and Anthropic backed the bill. The audit is the part most likely to draw amendment or federal challenge, but it is law today.
Other Illinois AI laws
- AI therapy ban (HB 1806). Signed on Friday, August 1, 2025, and effective immediately, it prohibits using AI to provide mental health and therapeutic decision-making, while allowing administrative and supplementary support for licensed professionals. IDFPR can fine violations up to $10,000.
- Insurance downcoding (SB 3114). It bars health care payors from using algorithms that bypass review of the billing professional's information to downcode a claim, and requires a person to make or review those decisions. Illinois House Democrats report it was signed in July 2026 and takes effect January 1, 2028.
- Digital replicas (HB 4875 and HB 4762). Capitol News Illinois lists them as Illinois' digital likeness protections for performers and artists. Summaries say HB 4875 amended the Right of Publicity Act effective January 1, 2025, and HB 4762 makes certain digital replica contract terms unenforceable. Read the text before relying on those details.
- Chatbot bills. SB 316 (companion chatbots) and SB 317 (consumer AI notice) passed the Senate, but one tracker shows both stuck in House Rules as of September 23, 2026. They are not law.
The federal backdrop
Executive Order 14365, signed in December 2025, directs the Justice Department to create an AI Litigation Task Force to challenge state AI laws. An executive order cannot repeal a state statute. Pritzker's office called the order "a blatant federal overreach" and said Illinois would keep pursuing "common-sense" policies, and the Attorney General's office said it was reviewing it. We found no report of a federal lawsuit against HB 3773 or SB 315. Our preemption guide tracks the litigation, and our Connecticut employer guide shows how another state wrote similar employment duties.
What to do now
Start with HB 3773 if you employ people in Illinois. Start with SB 315 only if you train frontier models.
Employers
- List every AI tool used for recruiting, screening, promotion, training selection, discipline or discharge in Illinois, including vendor tools.
- Test for discriminatory effect by protected class, and remove ZIP code or other location proxies from scoring.
- Send notice now. Cover current employees and applicants, name the tool and the decisions it affects, and keep dated copies. Do not wait for IDHR.
- Check video interviews and biometrics. Get consent under the Video Interview Act, and get written BIPA releases where a tool captures biometric identifiers.
- Keep records. The withdrawn draft proposed three years, so keeping at least that long is a prudent hedge.
Frontier AI developers
- Confirm your status against the 10^26 and $500 million tests, including affiliates.
- Prepare the disclosure statement and assessment for January 1, 2027.
- Draft the framework and incident process for 72-hour reporting, and choose an auditor before 2028.
- Set up whistleblower channels and review contracts for clauses that restrict disclosures.
Compliance checklist
▢ AI tool inventory dated and owned by a named person
▢ Discriminatory effect testing results saved
▢ Notice text, delivery dates and recipients recorded
▢ Video interview consents and BIPA releases on file
▢ SB 315 applicability decision documented, with the January 1, 2027 and 2028 dates in the calendar
FAQ
Is Illinois' AI employment law enforceable right now?
Yes. HB 3773's discrimination, ZIP code and notice provisions have applied since January 1, 2026. IDHR's June 2, 2026 withdrawal of its draft notice rules did not suspend the statute.
Does Illinois require bias audits for AI hiring tools?
No. HB 3773 does not require a bias audit or impact assessment, unlike New York City's Local Law 144. An audit can still be useful evidence that you tested for discriminatory effect.
Why did IDHR withdraw its proposed AI rules?
IDHR said postponement was necessary to allow continued collaboration with other state agencies. It had proposed the rules on May 15, 2026, and we found no report of a refiled version as of October 20, 2026.
What is the Illinois AI Safety Measures Act?
It is SB 315, signed July 6, 2026, which regulates developers of frontier AI models trained with more than 10^26 operations. Most duties fall on those with over $500 million in revenue, and annual independent audits start in 2028.
Is Illinois really the third state to regulate frontier AI developers?
Yes, according to every source we read, after California's SB 53 and New York's RAISE Act. Illinois is the first of the three to require annual independent audits.
Does Illinois' AI law apply to employers based outside Illinois?
Yes, if they have employees in Illinois, according to law-firm summaries of HB 3773. SB 315's disclosure statement applies to large developers that develop, deploy or operate a frontier model in Illinois in whole or in part.
Does Illinois ban AI therapy?
Yes. HB 1806 prohibits AI from providing therapy or making therapeutic decisions, with fines of up to $10,000 per violation. AI can still support administrative tasks for licensed professionals.
Secure Privacy's AI Governance module lets teams register AI systems with risk levels, use cases and owners and map them to applicable regulations, which helps when you track several state laws at once. See our AI governance guide. This is general information, not legal advice.
