How do Illinois and Colorado AI hiring laws compare?

Last verified: June 1, 2026

Answer

Illinois regulates AI hiring through two laws: the Artificial Intelligence Video Interview Act (820 ILCS 42), which requires notice, explanation, and written consent for AI-analyzed video interviews, and HB-3773, which adds employee/applicant notice and an anti-discrimination duty for AI used in employment decisions (effective January 1, 2026). Colorado's AI Act (SB 26-189, which repealed and reenacted SB 24-205) takes a disclosure-and-notice approach: employers using automated decision-making technology (ADMT) to make or substantially influence consequential employment decisions must give interaction notice, provide a plain-language adverse-outcome explanation within 30 days, allow data correction, and ensure meaningful human review. Colorado no longer requires algorithmic impact assessments or high-risk AI system classification — that model was repealed when SB 26-189 was signed on May 14, 2026; its disclosure-and-notice obligations begin January 1, 2027.

Applicable Regulations

HB-3773

Illinois Human Rights Act AI Amendment (Public Act 103-0804)

enacted

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
Effective: 2026-01-01 Penalties: Enforced through the Illinois Human Rights Act framework by the Illinois Department of Human Rights (IDHR); remedies follow IHRA procedures (injunctive relief, damages, attorney's fees) rather than a specific monetary penalty schedule in the amendment itself.
PA-101-0260

Illinois Artificial Intelligence Video Interview Act (820 ILCS 42)

enacted

Enacted 2019 (PA 101-260), effective 2020-01-01. Amended by PA 102-47 (effective 2022-01-01) to add DCEO demographic reporting. Regulates Illinois employers who use AI to analyze applicant video interviews. Requires notice, explanation of AI, and written consent before analysis; limits video sharing; mandates 30-day deletion on applicant request; requires annual demographic reporting to DCEO.

Key Requirements

Notice, Explanation, and Written Consent Before any AI analysis of a video interview, notify the applicant that AI may be used, explain how the AI works and what characteristics it evaluates, and obtain written consent (Section 5)
Video Sharing Restrictions May share applicant videos only with individuals whose expertise or technology is necessary to evaluate the applicant's fitness (Section 10)
30-Day Deletion on Request Upon applicant request, employer must delete the video within 30 days and instruct all other recipients with copies or backups to delete them (Section 15)
Annual DCEO Demographic Reporting Collect racial/ethnicity data for applicants denied in-person interviews via AI analysis and for hired applicants; report annually to the Illinois Department of Commerce and Economic Opportunity by December 31 (Section 20, added by PA 102-47)
Effective: 2020-01-01 Penalties: The Act itself does not specify monetary penalties. Enforcement is primarily through reporting obligations (Section 20) and general Illinois employment / consumer protection frameworks; violators may face related claims under the Illinois Human Rights Act or common-law causes of action.
SB-26-189

Colorado AI Act — Automated Decision-Making Technology (SB 26-189, repeal & reenactment of SB 24-205)

enacted

On 2026-05-14 Governor Polis signed SB 26-189, which repeals and reenacts the Colorado AI Act (originally SB 24-205). The new law abandons the risk-management / annual-impact-assessment model and replaces it with a disclosure-and-notice framework governing "automated decision-making technology" (ADMT) that makes or substantially influences "consequential decisions" (education, employment, housing, financial services, insurance, healthcare, government services). The statute formally takes effect 2026-08-12 (no safety clause), but all substantive compliance obligations — for both deployers and developers — begin 2027-01-01, which is the operative date for regulated businesses; the Attorney General's implementing rules are also due by 2027-01-01. The AG has stated he will not enforce until the mandatory rulemaking process concludes.

Key Requirements

Interaction Notice Deployers must give clear notice at the point of interaction when a consumer interacts with an automated decision-making technology (ADMT)
Adverse-Outcome Disclosure Provide a plain-language explanation within 30 days of an adverse consequential decision made or substantially influenced by an ADMT
Data Correction Right Allow consumers to request correction of factually incorrect personal data used by the ADMT
Meaningful Human Review Provide meaningful human review and reconsideration after an adverse consequential decision
Developer Documentation Developers must supply technical documentation (intended uses, known harmful uses, training-data categories, known limitations and risks, and instructions enabling meaningful human review), notify deployers of material updates, and retain compliance records for 3+ years. Like all duties under the act, these obligations begin 2027-01-01
Effective: 2027-01-01 Penalties: Enforced exclusively by the Colorado Attorney General; violations are treated as deceptive trade practices under the Colorado Consumer Protection Act. Before enforcement the AG must give 60 days' written notice and an opportunity to cure; this cure right sunsets 2030-01-01, after which enforcement may be immediate. The AG has stated no enforcement will occur until the mandatory rulemaking process concludes.

Industry Context

HR & Recruiting Firms

Staffing agencies, recruiting firms, and HR technology providers that use AI for candidate sourcing, resume screening, interview analysis, and employment decision support. These firms face heightened regulatory scrutiny because AI in hiring directly affects individuals' economic opportunities.

Typical Compliance Gaps

No bias audit or disparate impact testing of hiring AI tools
No applicant notification that AI is used in screening or scoring
Lack of documentation linking AI outputs to adverse employment decisions
Unaware of AI exclusion endorsements in EPL or E&O policies

Full State Analysis

Illinois AI Regulations Colorado AI Regulations

Where this lands operationally

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Related Questions

  • Can I use AI for hiring in Illinois? Yes, but two distinct Illinois laws apply. HB-3773 (effective January 1, 2026) amended the Illinois Human Rights Act to prohibit employers from using AI that discriminates against protected classes or uses zip codes as a proxy, and it requires notice to employees that AI is being used in employment decisions (recruitment, hiring, promotion, discipline, tenure, or terms and conditions). Separately, the Illinois Artificial Intelligence Video Interview Act (PA 101-0260, 820 ILCS 42), in effect since 2020, applies specifically when AI analyzes applicant video interviews: employers must notify the applicant, explain how the AI works, obtain written consent, limit video sharing to necessary evaluators, delete videos within 30 days of an applicant's request, and — per the 2022 amendment (PA 102-47) — report applicant racial/ethnicity data annually to DCEO. If AI hiring tools also capture biometric identifiers (e.g., facial geometry from video), the separate Illinois Biometric Information Privacy Act (BIPA) creates additional consent and liability obligations. Illinois employers using AI for any form of employment decision should map their process against all three regimes.
  • Does Colorado require AI impact assessments? No longer. SB 26-189 (signed 2026-05-14) repealed and reenacted Colorado's AI Act, eliminating the impact-assessment requirement entirely. Colorado now instead requires deployers of automated decision-making technology (ADMT) to: give consumers clear interaction notice, disclose adverse consequential decisions within 30 days, allow correction of incorrect personal data, and provide meaningful human review and reconsideration. The statute formally takes effect 2026-08-12, but all compliance obligations — for deployers and developers alike — begin 2027-01-01.
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.