Illinois regulates AI at banks as an employer. Public Act 103-0804 (HB 3773), effective January 1, 2026, added Section 2-102(L) to the Illinois Human Rights Act: it is a civil rights violation for an employer to use AI that has the effect of subjecting employees to discrimination on a protected basis, to use zip codes as a proxy for a protected class, or to fail to notify an employee that it is using AI for employment decisions. The Illinois Department of Human Rights investigates charges and was directed to write rules on when and how notice must be given; it published proposed rules on May 15, 2026, but no AI rules appear in its codified procedural rules. Separately, the Artificial Intelligence Video Interview Act (820 ILCS 42, effective January 1, 2020) requires notice, an explanation, and consent before AI analysis of applicant video interviews.
| Full name | Illinois — Department of Human Rights (investigates charges under the Illinois Human Rights Act, including its 2026 artificial-intelligence provisions), the Illinois Human Rights Commission, and the Department of Commerce and Economic Opportunity (annual reports under the Artificial Intelligence Video Interview Act) |
| Role | State civil-rights agency enforcing a statute that makes AI-driven discrimination in employment, and failure to notify employees of AI use, a civil rights violation |
| Force on banks | Binding law |
| Applies to | Any bank or other employer with Illinois employees or Illinois-based applicants. The Illinois Human Rights Act amendment covers use of AI in recruitment, hiring, promotion, renewal of employment, selection for training, discharge, discipline, tenure and terms of employment; the Video Interview Act covers employers that ask applicants for Illinois-based positions to record video interviews and analyze them with AI. Neither is a lending rule: Illinois has no AI-specific statute for credit decisions, and credit discrimination remains under the existing Human Rights Act, ECOA and Regulation B |
| Key document | Illinois Human Rights Act amendments on artificial intelligence in employment (HB 3773, Public Act 103-0804; 775 ILCS 5/2-101(M), (N) and 2-102(L); approved August 9, 2024, effective January 1, 2026) |
| Latest move | The Department of Human Rights published proposed amendments to its procedural rules (56 Ill. Adm. Code 2520) implementing HB 3773 in the Illinois Register on May 15, 2026 (Volume 50, Issue 20, page 6794) and noticed a public hearing for June 10, 2026; the codified text reviewed on October 5, 2026 contains no AI rules |
| Documents tracked | 2 · all documents → |
HB 3773 is an effects-based rule: Section 2-102(L)(1) reaches AI use that has the effect of subjecting employees to discrimination, with no intent requirement, and it adds zip-code proxies as a standalone violation. The Act defines artificial intelligence as 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, and includes generative AI (Section 2-101(M), (N)). The notice duty in Section 2-102(L)(2) is a separate violation, and the Department of Human Rights is to adopt rules on the circumstances and conditions that require notice, the time period for providing it, and the means. A charge must be filed with the Department within two years of the alleged violation (775 ILCS 5/7A-102(A)(1)), after which the matter can proceed before the Illinois Human Rights Commission or in circuit court.
For a bank the law bites on HR technology: résumé screening, video-interview scoring, internal promotion analytics, workforce-monitoring tools and vendor platforms all fall within an employer's decisions. The Department's proposed rules, published in the Illinois Register on May 15, 2026 (Volume 50, Issue 20, page 6794) with a public hearing noticed for June 10, 2026, were its first attempt to implement the notice provision; the codified text of 56 Ill. Adm. Code 2520 reviewed on October 5, 2026 contains no AI subpart, so the statutory notice duty applies without rule-level detail. The Video Interview Act is a narrower older rule with no penalty section; its one reporting duty, in Section 20, applies to employers that rely solely on AI analysis of a video interview to decide who gets an in-person interview.
What has the Illinois IDHR actually published on AI?
| Date | Document | Status |
|---|---|---|
| Aug 9, 2024 | Illinois HB 3773 (P.A. 103-0804) — Illinois Human Rights Act amendments on artificial intelligence in employment (H.B. 3773, Public Act 103-0804) | In force |
| Aug 9, 2019 | Illinois AI Video Interview Act (820 ILCS 42) — Artificial Intelligence Video Interview Act (820 ILCS 42) | In force |
| Date | Type | Document / event |
|---|---|---|
| May 15, 2026 | Milestone | IDHR publishes proposed rules implementing the AI in employment law (First Notice). The Illinois Department of Human Rights published proposed amendments to 56 Ill. Adm. Code 2520, Procedures of the Department of Human Rights, in the Illinois Register, Volume 50, Issue 20, page 6794, to implement Public Act 103-0804 (Artificial Intelligence in Employment), and noticed a public hearing for June 10, 2026. The Illinois Register is published by the Secretary of State and may block automated downloads. |
| Aug 9, 2024 | Statute | Illinois HB 3773 (P.A. 103-0804) — Illinois Human Rights Act amendments on artificial intelligence in employment (H.B. 3773, Public Act 103-0804). Illinois H.B. source ↗ |
| Aug 9, 2019 | Statute | Illinois AI Video Interview Act (820 ILCS 42) — Artificial Intelligence Video Interview Act (820 ILCS 42). The Illinois Artificial Intelligence Video Interview Act (820 ILCS 42), enacted as Public Act 101-0260 on August 9, 2019 and effective January 1, 2020, regulates employers that ask applicants to record video interviews and use artificial intelligence to analyze the videos. source ↗ |
- Whether and when the Department of Human Rights finalizes rules defining the content, timing and means of the Section 2-102(L)(2) notice, and whether they reach applicants as well as current employees
- The first charges or Human Rights Commission decisions applying the 'effect of subjecting employees to discrimination' standard or the zip-code proxy rule to an employer's AI tool
- Whether the General Assembly adds AI duties outside employment; SB 3364 in the 104th General Assembly, for example, would make it a civil rights violation to use AI in a real estate transaction without notice
- Any change to the Video Interview Act's demographic-reporting duty, which sends annual employer data to the Department of Commerce and Economic Opportunity by December 31
Does the Illinois AI employment law apply to banks?
Yes, to a bank as an employer. Section 2-102(L) of the Illinois Human Rights Act applies to any employer within the Act's definition, which covers a person employing one or more employees in Illinois for 20 or more calendar weeks in a year. It governs AI used in recruitment, hiring, promotion, discharge, discipline and the terms of employment, not AI used for lending.
When did the Illinois AI law take effect and where are the rules?
Public Act 103-0804 took effect January 1, 2026. The Department of Human Rights is required to adopt rules on notice; it published proposed rules on May 15, 2026, but the codified 56 Ill. Adm. Code 2520 reviewed on October 5, 2026 has no AI subpart. The statutory duties apply regardless.
Who enforces the Illinois AI in employment law?
The Illinois Department of Human Rights, through the Human Rights Act's charge process: a charge is filed with the Department within two years of the alleged violation, investigated, and can proceed to the Illinois Human Rights Commission or circuit court.
Follow every move these regulators make
when one of these regulators moves, the next morning's brief says so · six sourced stories · 7 am ET · free
plus every tracker, bank and agent page update, the morning after · leave any morning