Illinois regulates most AI use through employment and biometric law. HB 3773 amended the Illinois Human Rights Act to bar employers from using AI in ways that discriminate against protected classes. Separately, the Biometric Information Privacy Act (BIPA), which predates the AI wave, drives much of the country's biometric AI litigation. Since August 1, 2025, the Wellness and Oversight for Psychological Resources Act has barred AI from providing therapy or making therapeutic decisions. In July 2026 Illinois also enacted a frontier-model law on the California and New York template. The AI Safety Measures Act takes effect January 1, 2027 and requires annual independent audits from 2028.
Key points
- HB 3773 amends the Illinois Human Rights Act to cover discriminatory employer use of AI. The Department of Human Rights proposed implementing rules on May 15, 2026 and paused the rulemaking on June 2; the statute applies without them.
- BIPA requires consent before collecting biometric identifiers and allows a private right of action.
- BIPA is the most-litigated biometric statute in the US and shapes facial-recognition risk nationally.
- The Safety Measures Act (signed July 6, 2026) makes Illinois the third frontier-AI state and the first to mandate independent third-party audits, annually from January 1, 2028, enforced by the attorney general with no private right of action.
- Executive Order 2026-07 (September 22, 2026) created an Illinois Artificial Intelligence Cabinet, an advisory body of academic and expert partners and senior leaders of seven state agencies, to plan AI incident response, safeguards for public infrastructure, and the feasibility of further regulation, including whether existing legal remedies are enough to hold AI companies accountable for harm and the terms of data-center incentives. Members were due by October 22, 2026; no appointments had been announced as of October 26. The cabinet sunsets by December 31, 2027.
- The Wellness and Oversight for Psychological Resources Act (HB 1806), in force since it was signed on August 1, 2025, bars anyone from using AI to provide therapy or make therapeutic decisions; licensed professionals may use AI for administrative and supplementary support. The Department of Financial and Professional Regulation can fine up to $10,000 per violation.
Laws and instruments
AI in employment (Human Rights Act amendment)
HB 3773; Public Act 103-0804
Prohibits employers from using AI that has a discriminatory effect on protected classes and from using ZIP codes as a proxy for protected characteristics; requires notice of AI use in employment decisions.
Effective: January 1, 2026
Wellness and Oversight for Psychological Resources Act (AI therapy ban)
HB 1806, signed August 1, 2025
Bars anyone from using AI to provide therapy or psychotherapy or to make therapeutic decisions in Illinois, while letting licensed behavioral health professionals use AI for administrative and supplementary support. The Department of Financial and Professional Regulation investigates violations, and each confirmed violation carries a fine of up to $10,000.
Effective: August 1, 2025, on signing
Artificial Intelligence Safety Measures Act (AISMA)
SB 315, signed July 6, 2026
The third state frontier AI law on the California and New York template, covering models trained past 10^26 operations by developers above 500 million dollars in revenue: published safety frameworks, transparency reports, critical-incident reporting, whistleblower protections, and, uniquely, annual independent third-party compliance audits with published results. Preempts local AI regulation in Illinois.
Effective: January 1, 2027; audit and framework duties January 1, 2028
Timeline
- 2008
BIPA enacted.
- August 1, 2025
The governor signs the Wellness and Oversight for Psychological Resources Act (HB 1806), barring AI therapy; it takes effect immediately.
- January 1, 2026
HB 3773 AI employment provisions take effect.
- June 2, 2026
The Department of Human Rights pauses its rulemaking on AI notices in employment decisions, proposed May 15, and cancels the June 10 hearing.
- July 6, 2026
Artificial Intelligence Safety Measures Act signed.
- September 22, 2026
Executive Order 2026-07 establishes the Illinois Artificial Intelligence Cabinet, an advisory body on AI incident preparedness, infrastructure safeguards, and possible regulation.
- October 22, 2026
Deadline for the governor to appoint the AI Cabinet's members, 30 days after the order; no appointments had been announced as of October 26.
- January 1, 2027
AISMA takes effect; attorney-general enforcement and disclosure filings begin.
- December 31, 2027
The AI Cabinet sunsets under Executive Order 2026-07.
- January 1, 2028
Frontier framework publication and annual independent audit duties begin.
Who it applies to
Employers operating in Illinois; BIPA reaches any private entity collecting biometric data from Illinois residents. The AI Safety Measures Act covers developers of models trained past 10^26 operations with more than $500 million in revenue. The AI therapy ban reaches anyone offering therapy or psychotherapy services in Illinois.
Penalties
BIPA allows statutory damages per violation through a private right of action; Human Rights Act violations are enforced by the Illinois Department of Human Rights. The attorney general enforces the AI Safety Measures Act, with no private right of action. The Department of Financial and Professional Regulation can fine up to $10,000 per violation of the AI therapy ban.
Recent developments
September 22, 2026
Governor of Illinois
Illinois creates an AI Cabinet to plan incident response and weigh further regulation
Executive Order 2026-07 sets up the Illinois Artificial Intelligence Cabinet, a cross-sector advisory body of academic and expert partners and senior leaders of seven agencies, from DoIT and emergency management to financial regulation and public health. Its remit covers AI incident preparedness and response, safeguards for public infrastructure, the feasibility of new regulatory measures, including whether existing legal remedies are enough to hold AI companies accountable for harm, and the energy and incentive terms for data centers. The governor is to appoint members within 30 days, and the cabinet sunsets by December 31, 2027.
Illinois signs the third frontier AI law, the first state to require independent safety audits of frontier AI
Governor Pritzker signed the Artificial Intelligence Safety Measures Act (SB 315), putting Illinois beside California and New York with the same frontier template: models trained past 10^26 operations, developers above 500 million dollars in revenue, safety frameworks, transparency reports, and incident reporting. Illinois goes one step further than either coast. From January 1, 2028, large frontier developers must retain an independent third party to audit their compliance annually and publish the results. The act takes effect January 1, 2027, enforced exclusively by the attorney general, with no private right of action, and it preempts local AI regulation inside the state.
January 1, 2026
King & Spalding
A wave of US state AI laws takes effect: California, Texas, Illinois
California's frontier transparency and training-data laws, Texas TRAIGA, and Illinois' AI employment amendment all took effect on the same day, three weeks after the federal preemption order. For now every one of them remains enforceable, and most follow the affected resident rather than the company's location.
Common questions
Does Illinois have a comprehensive AI law?
Not in one statute. Illinois regulates most AI use through employment and biometric law. HB 3773 amended the Illinois Human Rights Act to bar employers from using AI in ways that discriminate against protected classes. Separately, the Biometric Information Privacy Act (BIPA), which predates the AI wave, drives much of the country's biometric AI litigation. Since August 1, 2025, the Wellness and Oversight for Psychological Resources Act has barred AI from providing therapy or making therapeutic decisions. In July 2026 Illinois also enacted a frontier-model law on the California and New York template. The AI Safety Measures Act takes effect January 1, 2027 and requires annual independent audits from 2028.
What are the penalties for AI violations in Illinois?
BIPA allows statutory damages per violation through a private right of action; Human Rights Act violations are enforced by the Illinois Department of Human Rights. The attorney general enforces the AI Safety Measures Act, with no private right of action. The Department of Financial and Professional Regulation can fine up to $10,000 per violation of the AI therapy ban.
Who does AI regulation in Illinois apply to?
Employers operating in Illinois; BIPA reaches any private entity collecting biometric data from Illinois residents. The AI Safety Measures Act covers developers of models trained past 10^26 operations with more than $500 million in revenue. The AI therapy ban reaches anyone offering therapy or psychotherapy services in Illinois.
Cite this page
Artificial Intelligence Regulations, "AI Regulation in Illinois," reviewed October 26, 2026, https://artificialintelligenceregulations.com/jurisdictions/illinois.html.
Entries state the position as of the review date and link to the primary text for verification.
