Illinois HB-3773 focuses on consent and disclosure for AI video interviews, while Colorado SB 24-205 takes a broader risk-based approach requiring impact assessments for all high-risk AI systems including hiring tools.
Applicable Regulations
Expands existing AI Video Interview Act to cover broader AI-driven employment decisions. Requires consent and disclosure for AI analysis.
Key Requirements
Consent Requirement Obtain explicit consent before AI analysis of candidates
Data Retention Follow data retention limits for AI-processed data
Annual Reporting Report AI usage in employment decisions annually
Effective: 2025-01-01 Penalties: Enforcement by Illinois Attorney General. Civil penalties of up to $500 per negligent violation and $2,500 per intentional violation.
First comprehensive US state law governing high-risk AI systems. Signed May 17, 2024; compliance deadline extended to June 30, 2026 by SB 25B-004. Imposes obligations on both developers and deployers of AI systems that make or substantially influence consequential decisions affecting consumers.
Key Requirements
Impact Assessment Complete documented impact assessments annually and within 90 days of substantial modifications, covering discrimination risks, data inputs/outputs, and mitigation measures
Consumer Notice Notify consumers when a high-risk AI system makes or substantially influences a consequential decision about them
Correction & Appeal Rights Allow consumers to correct inaccurate personal data and appeal adverse decisions through human review where technically feasible
Developer Disclosure Developers must publish statements describing high-risk systems and discrimination risk management, and supply deployers documentation for impact assessments
Effective: 2026-06-30 Penalties: Enforcement by Colorado Attorney General. Violations treated as deceptive trade practices under the Colorado Consumer Protection Act.
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
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.