WHAT THIS BILL REGULATES · 2 REQUIREMENT TYPES
How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
This Act may be cited as the Illinois High-Impact AI Governance Principles and Disclosure Act.
Establishes the short title of the Act as the Illinois High-Impact AI Governance Principles and Disclosure Act. Creates no compliance obligations.
The widespread usage of AI systems has raised several public concerns, including the potential for AI systems to perpetuate biases, produce non-transparent decisions, and cause unintended consequences. These issues can result in significant harm to individuals and communities.
Legislative findings noting public concerns about AI systems perpetuating biases, producing non-transparent decisions, and causing unintended consequences. These findings frame the policy rationale for the Act but impose no compliance obligations.
"Artificial intelligence systemArtificial intelligence system"Artificial intelligence system" or "AI system" means a system that can work on its own to some extent, that uses data provided by humans or machines to figure out how to achieve specific goals set by humans, that does this using methods like machine learning or rules based on logic and knowledge, and that creates and outputs content, predictions, recommendations, or decisions, which can affect the world around it.Section 10" or "AI system" means a system that can work on its own to some extent, that uses data provided by humans or machines to figure out how to achieve specific goals set by humans, that does this using methods like machine learning or rules based on logic and knowledge, and that creates and outputs content, predictions, recommendations, or decisions, which can affect the world around it.
"BusinessBusiness"Business" means a person engaged in commercial, industrial, or professional activities. "Business" includes a for-profit entity and a non-profit organization.Section 10" means a person engaged in commercial, industrial, or professional activities. "BusinessBusiness"Business" means a person engaged in commercial, industrial, or professional activities. "Business" includes a for-profit entity and a non-profit organization.Section 10" includes a for-profit entity and a non-profit organization.
Defines the two key terms used throughout the Act: Artificial intelligence system (or AI system) and Business. The AI system definition is broad and functional, covering any system that operates with some autonomy, uses data to achieve human-set goals via machine learning or logic-based methods, and outputs content, predictions, recommendations, or decisions that can affect the world. The business definition covers any person engaged in commercial, industrial, or professional activities, including for-profit entities and non-profit organizations.
1 To address the concerns detailed in the findings in Section 5 of this Act and to ensure that negative impacts of AI system use are prevented, the Department of Innovation and Technology shall adopt rules as may be necessary to ensure that businessesBusiness"Business" means a person engaged in commercial, industrial, or professional activities. "Business" includes a for-profit entity and a non-profit organization.Section 10 using AI systems are compliant with the 5 principles of AI governance as follows: (1) Safety: Ensuring systems operate without causing harm to individuals. (2) Transparency: Providing clear and understandable explanations of how systems work and make decisions. (3) Accountability: Identifying and holding individuals or companies responsible for the system's performance and outcomes. (4) Fairness: Preventing and mitigating bias to ensure equitable treatment for all individuals. (5) Contestability: Allowing individuals to challenge and seek redress for decisions made by the system.
Section 15 directs the Department of Innovation and Technology to adopt rules ensuring businesses using AI systems comply with five enumerated governance principles: safety, transparency, accountability, fairness, and contestability. The principles are stated at a high level of abstraction — each is a single sentence — with all operational detail delegated to future DoIT rulemaking. This makes the section a rulemaking mandate on the Department rather than a set of self-executing obligations on businesses, though businesses are the ultimate regulated parties once rules are adopted.
(a) 2 The Illinois Department of Innovation and Technology shall adopt rules to ensure that a businessBusiness"Business" means a person engaged in commercial, industrial, or professional activities. "Business" includes a for-profit entity and a non-profit organization.Section 10 using an AI system in Illinois publishes on the businessBusiness"Business" means a person engaged in commercial, industrial, or professional activities. "Business" includes a for-profit entity and a non-profit organization.Section 10's official Internet website accessible to the public a report explaining compliance with the 5 principles of AI governance iterated in this Act. This report shall: (1) be updated annually and whenever significant changes are made to the AI system, such as modifications to algorithms, substantial alterations to data inputs, or shifts in operational contexts, additional significant change shall be established by the Department of Innovation and Technology; (2) include information on the design, major decisions made during the design process (such as testing metrics), training data, risk mitigation strategies, and any impact assessments conducted; and (3) be written in plain language to ensure accessibility for the general public, while also providing a more detailed explanation for specialized audiences; this 2-level approach ensures clarity for everyone while offering enough depth for those who may need to understand or challenge the system or its outputs, such as in cases of fairness or discrimination.
(b) Any businessBusiness"Business" means a person engaged in commercial, industrial, or professional activities. "Business" includes a for-profit entity and a non-profit organization.Section 10 using AI systems shall be subject to a civil penalty of $1,000 for violation of this Act or rules adopted under this Act unless the businessBusiness"Business" means a person engaged in commercial, industrial, or professional activities. "Business" includes a for-profit entity and a non-profit organization.Section 10 (1) properly complies with the provisions of this Act and (2) publicly discloses compliance with the provisions of this Act.
Section 20 has two operative subsections. Subsection (a) directs the Department of Innovation and Technology to adopt rules requiring businesses using AI systems to publish a public report on their website explaining compliance with the five governance principles. The report must be updated annually and upon significant system changes, must cover design decisions, training data, risk mitigation strategies, and impact assessments, and must be written in a two-level format — plain language for general audiences plus detailed technical explanation for specialized audiences.
Subsection (b) establishes the enforcement mechanism: a $1,000 civil penalty per violation, with a safe harbor for businesses that properly comply and publicly disclose compliance.
This Act applies to all businessesBusiness"Business" means a person engaged in commercial, industrial, or professional activities. "Business" includes a for-profit entity and a non-profit organization.Section 10 with 10 or more employees.
Limits the Act's applicability to businesses with 10 or more employees. This is a threshold provision that narrows the scope of all other obligations in the Act — it creates no independent compliance duty.
This Act takes effect January 1, 2026.
Sets the effective date of the Act as January 1, 2026. This is a standard effective-date provision creating no compliance obligation.