AI Compliance for Law Firms in Illinois
Regulatory Status
HB-3773
Illinois Human Rights Act AI Amendment (Public Act 103-0804)
Amends the Illinois Human Rights Act (775 ILCS 5/) to prohibit employers from using artificial intelligence that subjects employees or applicants to discrimination based on protected classes, and from using zip codes as a proxy for protected classes. Requires employers to notify employees when AI is used in recruitment, hiring, promotion, discharge, discipline, or other terms and conditions of employment. Defines "artificial intelligence" and "generative artificial intelligence" for purposes of the Act.
Key Requirements
AI Discrimination Prohibition Cannot use AI that has the effect of subjecting employees to discrimination on the basis of protected classes identified under the Illinois Human Rights Act
Zip Code Proxy Ban Cannot use zip codes as a proxy for protected classes under the Illinois Human Rights Act
Employee Notice of AI Use Must provide notice to an employee that the employer is using AI for recruitment, hiring, promotion, discharge, discipline, or other employment-related decisions
Insurance Implications
Relevant policy types: E&O, Cyber, D&O
| Carrier | Endorsement | Status | Applies To | Filing Date | Source |
|---|---|---|---|---|---|
| Verisk | CG 40 47 | adopted | CGL | 2026-01-10 | verisk.com |
| W.R. Berkley | PC 51380 | pending | D&O, E&O, Fiduciary | 2026-02-01 | berkley.com |
| Verisk | CG 40 48 | adopted | CGL | 2026-01-10 | verisk.com |
| Verisk | CG 35 08 | adopted | Products/Completed Operations | 2026-01-10 | verisk.com |
Filing status based on carrier announcements and state DOI records. Verify filings through your state's SERFF Filing Access system.
Compliance Gaps to Address
No policy on AI tool usage in client matters
No disclosure to clients about AI-assisted work product
No verification process for AI-generated legal research
Unaware of professional responsibility implications of AI use
No confidentiality review of which AI tools may receive client data under Model Rule 1.6
No standing process to verify AI-generated citations and disclose AI use where courts require it
Other Industries in This State
This Industry in Other States
Disclaimer: This content is provided for informational purposes only and does not constitute legal advice. AI regulations and insurance policy terms change frequently. Consult with a qualified attorney or insurance professional for advice specific to your situation. Gridex makes no warranties regarding the accuracy or completeness of this information.