41 use AEDTs must adhere to audit and disclosure requirements. Failure to do so runs the risk of enforcement actions. In August 2024, Illinois enacted a law that will go into effect on January 1, 2026.10 Under this law, employers will be required to notify employees when they use AI for employment decisions which include recruitment, hiring, promotion, renewal of employment, selection for training, discharge, discipline, tenure, or the terms, or conditions of employment. It prohibits employers from using AI in a manner that discriminates against employees that are within protected classes in Illinois. Illinois also has a law, which took effect in January 2020, that requires employers who use AI to analyze video interviews of applicants to, among other things, provide notice and obtain consent. Other states have also introduced bills to specifically regulate the use of AI in the employment context, while several state privacy laws currently in effect also provide some overlapping coverage, as discussed below. In addition, employers may be subject to liability under long-standing federal discrimination laws, such as Title VII of the Civil Rights Act of 1964 (Title VII), if their use of AI leads to discrimination or disparate impacts on protected classes of people, as discussed in our July 2024 advisory. State Data Privacy Laws Often overlooked is the fact that many existing state data privacy laws have AI regulation components. Specifically, such laws regulate the use of automated decision-making technology (ADMT) in processing personal data. ADMT generally refers to the use of automated processes with personal data to make decisions around financial or lending services, housing, insurance, educational enrollment, criminal justice, employment opportunities, health care services or access to essential goods or services. Common examples include the use of AI to process personal data in connection with determining loan qualifications or in hiring and employment decisions (like AEDT described above). Profiling generally means the automated processing of personal information to assess and predict a person’s economic situation, health, personal preferences, interests, reliability, behavior, location, or movements. A common example of AI-related profiling is the widespread use of targeted 10 Limit Predictive Analytics Use, HB 3773, 103rd General Assembly (Ill. Pub. Act 103-0804) (2024), https://www.ilga.gov/legislation/BillStatus. asp?DocNum=3773&GAID=17&DocTypeID=HB&SessionID=112&GA=103
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