Illinois · House Bill · 103rd General Assembly (2023–2024)
HB5322
Illinois HB 5322 — Illinois Commercial Algorithmic Impact Assessments Act

Status ● Failed Effective N/A Passage Likelihood N/A

WHAT THIS BILL REGULATES · 4 REQUIREMENT TYPES

How Is This Bill Enforced

Enforcement Authority
Attorney General enforcement. The Office of the Attorney General may request impact assessments from developers and deployers. If a developer or deployer fails or refuses to provide a requested impact assessment, the Attorney General may seek injunctive relief, actual damages, and attorney's fees. No private right of action is created.
Private Right of Action
No private right of action. Enforcement is exclusive to the designated authority.
Penalties
Injunctive relief, actual damages caused by the failure or refusal to provide impact assessments, and attorney's fees are available to the Attorney General. No statutory damages schedule. No private damages remedy.

What This Bill Requires

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.

Statutory Text
Analysis & Obligations
Section 1
Short title

This Act may be cited as the Illinois Commercial Algorithmic Impact AssessmentsImpact assessment"Impact assessment" means a documented risk-based evaluation of an automated decision tool that meets the criteria of this Act.Section 5 Act.

Establishes the short title of the Act as the Illinois Commercial Algorithmic Impact Assessments Act. No compliance obligations are imposed.

Section 5
Definitions

As used in this Act: "Algorithmic discriminationAlgorithmic discrimination"Algorithmic discrimination" means the condition in which an automated decision tool contributes to unjustified differential treatment or impacts disfavoring people on the basis of race, color, national origin, citizen or immigration status, families with children, creed, religious belief or affiliation, sex, marital status, the presence of any sensory, mental, or physical disability, age, honorably discharged veteran or military status, sexual orientation, gender expression or gender identity, or any other protected class under Illinois statute.Section 5" means the condition in which an automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5 contributes to unjustified differential treatment or impacts disfavoring people on the basis of race, color, national origin, citizen or immigration status, families with children, creed, religious belief or affiliation, sexSex"Sex" includes pregnancy, childbirth, and related conditions, gender identity, intersex status, and sexual orientation.Section 5, marital status, the presence of any sensory, mental, or physical disability, age, honorably discharged veteran or military status, sexual orientation, gender expression or gender identity, or any other protected class under Illinois statute. "Artificial intelligenceArtificial intelligence"Artificial intelligence" means a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing a real or virtual environment.Section 5" means a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing a real or virtual environment. "Automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5" means a system or service that uses artificial intelligenceArtificial intelligence"Artificial intelligence" means a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing a real or virtual environment.Section 5 and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisionsConsequential decision"Consequential decision" means a decision or judgment that has a legal, material, or similarly significant effect on an individual's life relating to the impact of, access to, or the cost, terms, or availability of, any of the following: (1) Employment, workers management, or self-employment, including, but not limited to: (A) Pay or promotion; (B) Hiring or termination; and (C) Automated task allocation that automatically limits, segregates, or classifies employees based on individual behavior or performance for the purpose of assigning or determining material terms or conditions of employment. (2) Education and vocational training, including, but not limited to: (A) Assessment, including, but not limited to, detecting student cheating or plagiarism; (B) Accreditation; (C) Certification; (D) Admissions; and (E) Financial aid or scholarships. (3) Housing or lodging, including rental or short-term housing or lodging; (4) Essential utilities, including electricity, heat, water, internet or telecommunications access, or transportation; (5) Family planning, including adoption services or reproductive services, as well as assessments related to child protective services; (6) Health care or health insurance, including mental health care, dental, or vision; (7) Financial services, including a financial service provided by a mortgage company, mortgage broker, or creditor; (8) The criminal justice system, including, but not limited to, risk assessments for pretrial hearings, sentencing, and parole; (9) Legal services, including private arbitration or mediation; (10) Voting; and (11) Access to benefits or services or assignment of penalties.Section 5. "Consequential decisionConsequential decision"Consequential decision" means a decision or judgment that has a legal, material, or similarly significant effect on an individual's life relating to the impact of, access to, or the cost, terms, or availability of, any of the following: (1) Employment, workers management, or self-employment, including, but not limited to: (A) Pay or promotion; (B) Hiring or termination; and (C) Automated task allocation that automatically limits, segregates, or classifies employees based on individual behavior or performance for the purpose of assigning or determining material terms or conditions of employment. (2) Education and vocational training, including, but not limited to: (A) Assessment, including, but not limited to, detecting student cheating or plagiarism; (B) Accreditation; (C) Certification; (D) Admissions; and (E) Financial aid or scholarships. (3) Housing or lodging, including rental or short-term housing or lodging; (4) Essential utilities, including electricity, heat, water, internet or telecommunications access, or transportation; (5) Family planning, including adoption services or reproductive services, as well as assessments related to child protective services; (6) Health care or health insurance, including mental health care, dental, or vision; (7) Financial services, including a financial service provided by a mortgage company, mortgage broker, or creditor; (8) The criminal justice system, including, but not limited to, risk assessments for pretrial hearings, sentencing, and parole; (9) Legal services, including private arbitration or mediation; (10) Voting; and (11) Access to benefits or services or assignment of penalties.Section 5" means a decision or judgment that has a legal, material, or similarly significant effect on an individual's life relating to the impact of, access to, or the cost, terms, or availability of, any of the following: (1) Employment, workers management, or self-employment, including, but not limited to: (A) Pay or promotion; (B) Hiring or termination; and (C) Automated task allocation that automatically limits, segregates, or classifies employees based on individual behavior or performance for the purpose of assigning or determining material terms or conditions of employment. (2) Education and vocational training, including, but not limited to: (A) Assessment, including, but not limited to, detecting student cheating or plagiarism; (B) Accreditation; (C) Certification; (D) Admissions; and (E) Financial aid or scholarships. (3) Housing or lodging, including rental or short-term housing or lodging; (4) Essential utilities, including electricity, heat, water, internet or telecommunications access, or transportation; (5) Family planning, including adoption services or reproductive services, as well as assessments related to child protective services; (6) Health care or health insurance, including mental health care, dental, or vision; (7) Financial services, including a financial service provided by a mortgage company, mortgage broker, or creditor; (8) The criminal justice system, including, but not limited to, risk assessments for pretrial hearings, sentencing, and parole; (9) Legal services, including private arbitration or mediation; (10) Voting; and (11) Access to benefits or services or assignment of penalties. "DeployerDeployer"Deployer" means a person, partnership, State or local government agency, or corporation that uses or modifies an automated decision tool to make a consequential decision.Section 5" means a person, partnership, State or local government agency, or corporation that uses or modifies an automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5 to make a consequential decisionConsequential decision"Consequential decision" means a decision or judgment that has a legal, material, or similarly significant effect on an individual's life relating to the impact of, access to, or the cost, terms, or availability of, any of the following: (1) Employment, workers management, or self-employment, including, but not limited to: (A) Pay or promotion; (B) Hiring or termination; and (C) Automated task allocation that automatically limits, segregates, or classifies employees based on individual behavior or performance for the purpose of assigning or determining material terms or conditions of employment. (2) Education and vocational training, including, but not limited to: (A) Assessment, including, but not limited to, detecting student cheating or plagiarism; (B) Accreditation; (C) Certification; (D) Admissions; and (E) Financial aid or scholarships. (3) Housing or lodging, including rental or short-term housing or lodging; (4) Essential utilities, including electricity, heat, water, internet or telecommunications access, or transportation; (5) Family planning, including adoption services or reproductive services, as well as assessments related to child protective services; (6) Health care or health insurance, including mental health care, dental, or vision; (7) Financial services, including a financial service provided by a mortgage company, mortgage broker, or creditor; (8) The criminal justice system, including, but not limited to, risk assessments for pretrial hearings, sentencing, and parole; (9) Legal services, including private arbitration or mediation; (10) Voting; and (11) Access to benefits or services or assignment of penalties.Section 5. "DeveloperDeveloper"Developer" means a person, partnership, State or local government agency, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the known intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by the deployer.Section 5" means a person, partnership, State or local government agency, or corporation that designs, codes, or produces an automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5, or substantially modifies an artificial intelligenceArtificial intelligence"Artificial intelligence" means a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing a real or virtual environment.Section 5 system or service for the known intended purpose of making, or being a controlling factor in making, consequential decisionsConsequential decision"Consequential decision" means a decision or judgment that has a legal, material, or similarly significant effect on an individual's life relating to the impact of, access to, or the cost, terms, or availability of, any of the following: (1) Employment, workers management, or self-employment, including, but not limited to: (A) Pay or promotion; (B) Hiring or termination; and (C) Automated task allocation that automatically limits, segregates, or classifies employees based on individual behavior or performance for the purpose of assigning or determining material terms or conditions of employment. (2) Education and vocational training, including, but not limited to: (A) Assessment, including, but not limited to, detecting student cheating or plagiarism; (B) Accreditation; (C) Certification; (D) Admissions; and (E) Financial aid or scholarships. (3) Housing or lodging, including rental or short-term housing or lodging; (4) Essential utilities, including electricity, heat, water, internet or telecommunications access, or transportation; (5) Family planning, including adoption services or reproductive services, as well as assessments related to child protective services; (6) Health care or health insurance, including mental health care, dental, or vision; (7) Financial services, including a financial service provided by a mortgage company, mortgage broker, or creditor; (8) The criminal justice system, including, but not limited to, risk assessments for pretrial hearings, sentencing, and parole; (9) Legal services, including private arbitration or mediation; (10) Voting; and (11) Access to benefits or services or assignment of penalties.Section 5, whether for its own use or for use by the deployerDeployer"Deployer" means a person, partnership, State or local government agency, or corporation that uses or modifies an automated decision tool to make a consequential decision.Section 5. "Ethical artificial intelligenceEthical artificial intelligence"Ethical artificial intelligence" means automated decision tools that are developed and deployed with reasonable efforts by the developer and the deployer to: (1) Minimize unlawful discriminatory or biased outputs or applications; (2) Ensure that automated decision tools are being operated reliably, safely, and consistently; (3) Protect the data of natural persons by incorporating robust privacy and data security measures; (4) Prioritize transparency so that the behavior and functional components of automated decision tools can be understood in order to enable the identification of performance issues, safety and privacy concerns, biases, exclusionary practices, and unintended outcomes; and (5) Promote individual rights and minimize reasonably foreseeable harm to individuals resulting from use of the automated decision tool.Section 5" means automated decision toolsAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5 that are developed and deployed with reasonable efforts by the developerDeveloper"Developer" means a person, partnership, State or local government agency, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the known intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by the deployer.Section 5 and the deployerDeployer"Deployer" means a person, partnership, State or local government agency, or corporation that uses or modifies an automated decision tool to make a consequential decision.Section 5 to: (1) Minimize unlawful discriminatory or biased outputs or applications; (2) Ensure that automated decision toolsAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5 are being operated reliably, safely, and consistently; (3) Protect the data of natural persons by incorporating robust privacy and data security measures; (4) Prioritize transparency so that the behavior and functional components of automated decision toolsAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5 can be understood in order to enable the identification of performance issues, safety and privacy concerns, biases, exclusionary practices, and unintended outcomes; and (5) Promote individual rights and minimize reasonably foreseeable harm to individuals resulting from use of the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5. "Impact assessmentImpact assessment"Impact assessment" means a documented risk-based evaluation of an automated decision tool that meets the criteria of this Act.Section 5" means a documented risk-based evaluation of an automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5 that meets the criteria of this Act. "SexSex"Sex" includes pregnancy, childbirth, and related conditions, gender identity, intersex status, and sexual orientation.Section 5" includes pregnancy, childbirth, and related conditions, gender identity, intersex status, and sexual orientation. "Significant updateSignificant update"Significant update" means a new version, new release, or other update to an automated decision tool that materially changes its principal use, principal intended use, or expected outcome.Section 5" means a new version, new release, or other update to an automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5 that materially changes its principal use, principal intended use, or expected outcome.

Defines the core terms used throughout the Act. Key definitions include automated decision tool (an AI system specifically developed or modified to make or control consequential decisions), consequential decision (covering eleven high-stakes domains from employment to voting), deployer (one who uses or modifies such a tool), developer (one who designs, codes, or produces such a tool), and algorithmic discrimination (unjustified differential treatment across an expansive list of protected characteristics). The definition of deployer notably includes State and local government agencies, bringing public-sector use within scope alongside private-sector deployment.

Section 10
Assessment required
DeployerDeveloper

(a) 1 By January 1, 2026, and annually thereafter, a deployer of an automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5 must complete and document an impact assessmentImpact assessment"Impact assessment" means a documented risk-based evaluation of an automated decision tool that meets the criteria of this Act.Section 5 for any automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5 the deployerDeployer"Deployer" means a person, partnership, State or local government agency, or corporation that uses or modifies an automated decision tool to make a consequential decision.Section 5 uses that includes all of the following: (1) A statement of the purpose of the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5 and its intended benefits, uses, and deployment contexts; (2) A description of the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5's outputs and how they are used to make, or be a controlling factor in making, a consequential decisionConsequential decision"Consequential decision" means a decision or judgment that has a legal, material, or similarly significant effect on an individual's life relating to the impact of, access to, or the cost, terms, or availability of, any of the following: (1) Employment, workers management, or self-employment, including, but not limited to: (A) Pay or promotion; (B) Hiring or termination; and (C) Automated task allocation that automatically limits, segregates, or classifies employees based on individual behavior or performance for the purpose of assigning or determining material terms or conditions of employment. (2) Education and vocational training, including, but not limited to: (A) Assessment, including, but not limited to, detecting student cheating or plagiarism; (B) Accreditation; (C) Certification; (D) Admissions; and (E) Financial aid or scholarships. (3) Housing or lodging, including rental or short-term housing or lodging; (4) Essential utilities, including electricity, heat, water, internet or telecommunications access, or transportation; (5) Family planning, including adoption services or reproductive services, as well as assessments related to child protective services; (6) Health care or health insurance, including mental health care, dental, or vision; (7) Financial services, including a financial service provided by a mortgage company, mortgage broker, or creditor; (8) The criminal justice system, including, but not limited to, risk assessments for pretrial hearings, sentencing, and parole; (9) Legal services, including private arbitration or mediation; (10) Voting; and (11) Access to benefits or services or assignment of penalties.Section 5; (3) A summary of the types of data collected from natural persons and processed by the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5 when it is used to make, or be a controlling factor in making, a consequential decisionConsequential decision"Consequential decision" means a decision or judgment that has a legal, material, or similarly significant effect on an individual's life relating to the impact of, access to, or the cost, terms, or availability of, any of the following: (1) Employment, workers management, or self-employment, including, but not limited to: (A) Pay or promotion; (B) Hiring or termination; and (C) Automated task allocation that automatically limits, segregates, or classifies employees based on individual behavior or performance for the purpose of assigning or determining material terms or conditions of employment. (2) Education and vocational training, including, but not limited to: (A) Assessment, including, but not limited to, detecting student cheating or plagiarism; (B) Accreditation; (C) Certification; (D) Admissions; and (E) Financial aid or scholarships. (3) Housing or lodging, including rental or short-term housing or lodging; (4) Essential utilities, including electricity, heat, water, internet or telecommunications access, or transportation; (5) Family planning, including adoption services or reproductive services, as well as assessments related to child protective services; (6) Health care or health insurance, including mental health care, dental, or vision; (7) Financial services, including a financial service provided by a mortgage company, mortgage broker, or creditor; (8) The criminal justice system, including, but not limited to, risk assessments for pretrial hearings, sentencing, and parole; (9) Legal services, including private arbitration or mediation; (10) Voting; and (11) Access to benefits or services or assignment of penalties.Section 5; (4) A statement of the extent to which the deployerDeployer"Deployer" means a person, partnership, State or local government agency, or corporation that uses or modifies an automated decision tool to make a consequential decision.Section 5's use of the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5 is consistent with or varies from the statement required of the developerDeveloper"Developer" means a person, partnership, State or local government agency, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the known intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by the deployer.Section 5 by Section 15 of this Act; (5) An assessment of the reasonably foreseeable risks of algorithmic discriminationAlgorithmic discrimination"Algorithmic discrimination" means the condition in which an automated decision tool contributes to unjustified differential treatment or impacts disfavoring people on the basis of race, color, national origin, citizen or immigration status, families with children, creed, religious belief or affiliation, sex, marital status, the presence of any sensory, mental, or physical disability, age, honorably discharged veteran or military status, sexual orientation, gender expression or gender identity, or any other protected class under Illinois statute.Section 5 arising from the use of the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5 known to the deployerDeployer"Deployer" means a person, partnership, State or local government agency, or corporation that uses or modifies an automated decision tool to make a consequential decision.Section 5 at the time of the impact assessmentImpact assessment"Impact assessment" means a documented risk-based evaluation of an automated decision tool that meets the criteria of this Act.Section 5; (6) A description of the safeguards implemented, or that will be implemented, by the deployerDeployer"Deployer" means a person, partnership, State or local government agency, or corporation that uses or modifies an automated decision tool to make a consequential decision.Section 5 to align use of the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5 with principles of ethical artificial intelligenceEthical artificial intelligence"Ethical artificial intelligence" means automated decision tools that are developed and deployed with reasonable efforts by the developer and the deployer to: (1) Minimize unlawful discriminatory or biased outputs or applications; (2) Ensure that automated decision tools are being operated reliably, safely, and consistently; (3) Protect the data of natural persons by incorporating robust privacy and data security measures; (4) Prioritize transparency so that the behavior and functional components of automated decision tools can be understood in order to enable the identification of performance issues, safety and privacy concerns, biases, exclusionary practices, and unintended outcomes; and (5) Promote individual rights and minimize reasonably foreseeable harm to individuals resulting from use of the automated decision tool.Section 5 and to address any reasonably foreseeable risks of algorithmic discriminationAlgorithmic discrimination"Algorithmic discrimination" means the condition in which an automated decision tool contributes to unjustified differential treatment or impacts disfavoring people on the basis of race, color, national origin, citizen or immigration status, families with children, creed, religious belief or affiliation, sex, marital status, the presence of any sensory, mental, or physical disability, age, honorably discharged veteran or military status, sexual orientation, gender expression or gender identity, or any other protected class under Illinois statute.Section 5 arising from the use of the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5; (7) A description of how the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5 will be used by a natural person, or monitored when it is used, to make, or be a controlling factor in making, a consequential decisionConsequential decision"Consequential decision" means a decision or judgment that has a legal, material, or similarly significant effect on an individual's life relating to the impact of, access to, or the cost, terms, or availability of, any of the following: (1) Employment, workers management, or self-employment, including, but not limited to: (A) Pay or promotion; (B) Hiring or termination; and (C) Automated task allocation that automatically limits, segregates, or classifies employees based on individual behavior or performance for the purpose of assigning or determining material terms or conditions of employment. (2) Education and vocational training, including, but not limited to: (A) Assessment, including, but not limited to, detecting student cheating or plagiarism; (B) Accreditation; (C) Certification; (D) Admissions; and (E) Financial aid or scholarships. (3) Housing or lodging, including rental or short-term housing or lodging; (4) Essential utilities, including electricity, heat, water, internet or telecommunications access, or transportation; (5) Family planning, including adoption services or reproductive services, as well as assessments related to child protective services; (6) Health care or health insurance, including mental health care, dental, or vision; (7) Financial services, including a financial service provided by a mortgage company, mortgage broker, or creditor; (8) The criminal justice system, including, but not limited to, risk assessments for pretrial hearings, sentencing, and parole; (9) Legal services, including private arbitration or mediation; (10) Voting; and (11) Access to benefits or services or assignment of penalties.Section 5; and (8) A description of how the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5 has been or will be evaluated for validity or relevance.

(b) 2 By January 1, 2026, and annually thereafter, a developer of an automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5 must complete and document an impact assessment of any automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5 that it designs, codes, or produces that includes all of the following: (1) A statement of the purpose of the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5 and its intended benefits, uses, and deployment contexts; (2) A description of the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5's outputs and how they are used, as intended, to make, or be a controlling factor in making, a consequential decisionConsequential decision"Consequential decision" means a decision or judgment that has a legal, material, or similarly significant effect on an individual's life relating to the impact of, access to, or the cost, terms, or availability of, any of the following: (1) Employment, workers management, or self-employment, including, but not limited to: (A) Pay or promotion; (B) Hiring or termination; and (C) Automated task allocation that automatically limits, segregates, or classifies employees based on individual behavior or performance for the purpose of assigning or determining material terms or conditions of employment. (2) Education and vocational training, including, but not limited to: (A) Assessment, including, but not limited to, detecting student cheating or plagiarism; (B) Accreditation; (C) Certification; (D) Admissions; and (E) Financial aid or scholarships. (3) Housing or lodging, including rental or short-term housing or lodging; (4) Essential utilities, including electricity, heat, water, internet or telecommunications access, or transportation; (5) Family planning, including adoption services or reproductive services, as well as assessments related to child protective services; (6) Health care or health insurance, including mental health care, dental, or vision; (7) Financial services, including a financial service provided by a mortgage company, mortgage broker, or creditor; (8) The criminal justice system, including, but not limited to, risk assessments for pretrial hearings, sentencing, and parole; (9) Legal services, including private arbitration or mediation; (10) Voting; and (11) Access to benefits or services or assignment of penalties.Section 5; (3) A summary of the types of data collected from natural persons and processed by the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5 when it is used to make, or be a controlling factor in making, a consequential decisionConsequential decision"Consequential decision" means a decision or judgment that has a legal, material, or similarly significant effect on an individual's life relating to the impact of, access to, or the cost, terms, or availability of, any of the following: (1) Employment, workers management, or self-employment, including, but not limited to: (A) Pay or promotion; (B) Hiring or termination; and (C) Automated task allocation that automatically limits, segregates, or classifies employees based on individual behavior or performance for the purpose of assigning or determining material terms or conditions of employment. (2) Education and vocational training, including, but not limited to: (A) Assessment, including, but not limited to, detecting student cheating or plagiarism; (B) Accreditation; (C) Certification; (D) Admissions; and (E) Financial aid or scholarships. (3) Housing or lodging, including rental or short-term housing or lodging; (4) Essential utilities, including electricity, heat, water, internet or telecommunications access, or transportation; (5) Family planning, including adoption services or reproductive services, as well as assessments related to child protective services; (6) Health care or health insurance, including mental health care, dental, or vision; (7) Financial services, including a financial service provided by a mortgage company, mortgage broker, or creditor; (8) The criminal justice system, including, but not limited to, risk assessments for pretrial hearings, sentencing, and parole; (9) Legal services, including private arbitration or mediation; (10) Voting; and (11) Access to benefits or services or assignment of penalties.Section 5; (4) An assessment of the reasonably foreseeable risks of algorithmic discriminationAlgorithmic discrimination"Algorithmic discrimination" means the condition in which an automated decision tool contributes to unjustified differential treatment or impacts disfavoring people on the basis of race, color, national origin, citizen or immigration status, families with children, creed, religious belief or affiliation, sex, marital status, the presence of any sensory, mental, or physical disability, age, honorably discharged veteran or military status, sexual orientation, gender expression or gender identity, or any other protected class under Illinois statute.Section 5 arising from the intended use or foreseeable misuse of the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5; (5) A description of the measures taken by the developerDeveloper"Developer" means a person, partnership, State or local government agency, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the known intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by the deployer.Section 5 to incorporate principles of ethical artificial intelligenceEthical artificial intelligence"Ethical artificial intelligence" means automated decision tools that are developed and deployed with reasonable efforts by the developer and the deployer to: (1) Minimize unlawful discriminatory or biased outputs or applications; (2) Ensure that automated decision tools are being operated reliably, safely, and consistently; (3) Protect the data of natural persons by incorporating robust privacy and data security measures; (4) Prioritize transparency so that the behavior and functional components of automated decision tools can be understood in order to enable the identification of performance issues, safety and privacy concerns, biases, exclusionary practices, and unintended outcomes; and (5) Promote individual rights and minimize reasonably foreseeable harm to individuals resulting from use of the automated decision tool.Section 5 and to mitigate the risk known to the developerDeveloper"Developer" means a person, partnership, State or local government agency, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the known intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by the deployer.Section 5 of algorithmic discriminationAlgorithmic discrimination"Algorithmic discrimination" means the condition in which an automated decision tool contributes to unjustified differential treatment or impacts disfavoring people on the basis of race, color, national origin, citizen or immigration status, families with children, creed, religious belief or affiliation, sex, marital status, the presence of any sensory, mental, or physical disability, age, honorably discharged veteran or military status, sexual orientation, gender expression or gender identity, or any other protected class under Illinois statute.Section 5 arising from the use of the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5; and (6) A description of how the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5 is intended to be used by a natural person, or monitored when it is used, to make, or be a controlling factor in making, a consequential decisionConsequential decision"Consequential decision" means a decision or judgment that has a legal, material, or similarly significant effect on an individual's life relating to the impact of, access to, or the cost, terms, or availability of, any of the following: (1) Employment, workers management, or self-employment, including, but not limited to: (A) Pay or promotion; (B) Hiring or termination; and (C) Automated task allocation that automatically limits, segregates, or classifies employees based on individual behavior or performance for the purpose of assigning or determining material terms or conditions of employment. (2) Education and vocational training, including, but not limited to: (A) Assessment, including, but not limited to, detecting student cheating or plagiarism; (B) Accreditation; (C) Certification; (D) Admissions; and (E) Financial aid or scholarships. (3) Housing or lodging, including rental or short-term housing or lodging; (4) Essential utilities, including electricity, heat, water, internet or telecommunications access, or transportation; (5) Family planning, including adoption services or reproductive services, as well as assessments related to child protective services; (6) Health care or health insurance, including mental health care, dental, or vision; (7) Financial services, including a financial service provided by a mortgage company, mortgage broker, or creditor; (8) The criminal justice system, including, but not limited to, risk assessments for pretrial hearings, sentencing, and parole; (9) Legal services, including private arbitration or mediation; (10) Voting; and (11) Access to benefits or services or assignment of penalties.Section 5.

(c) 3 A deployerDeployer"Deployer" means a person, partnership, State or local government agency, or corporation that uses or modifies an automated decision tool to make a consequential decision.Section 5 or developerDeveloper"Developer" means a person, partnership, State or local government agency, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the known intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by the deployer.Section 5 must, in addition to the impact assessmentImpact assessment"Impact assessment" means a documented risk-based evaluation of an automated decision tool that meets the criteria of this Act.Section 5 required by subsections (1) and (2) of this Section, perform, as soon as feasible, an impact assessmentImpact assessment"Impact assessment" means a documented risk-based evaluation of an automated decision tool that meets the criteria of this Act.Section 5 with respect to any significant updateSignificant update"Significant update" means a new version, new release, or other update to an automated decision tool that materially changes its principal use, principal intended use, or expected outcome.Section 5.

(d) 4 Upon the request of the Office of the Attorney General, a developerDeveloper"Developer" means a person, partnership, State or local government agency, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the known intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by the deployer.Section 5 or deployerDeployer"Deployer" means a person, partnership, State or local government agency, or corporation that uses or modifies an automated decision tool to make a consequential decision.Section 5 must provide any impact assessmentImpact assessment"Impact assessment" means a documented risk-based evaluation of an automated decision tool that meets the criteria of this Act.Section 5 that it performed pursuant to this Section to the Office of the Attorney General. If a developerDeveloper"Developer" means a person, partnership, State or local government agency, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the known intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by the deployer.Section 5 or deployerDeployer"Deployer" means a person, partnership, State or local government agency, or corporation that uses or modifies an automated decision tool to make a consequential decision.Section 5 fails or refuses to provide an impact assessmentImpact assessment"Impact assessment" means a documented risk-based evaluation of an automated decision tool that meets the criteria of this Act.Section 5 requested by the Attorney General, the Attorney General may seek injunctive relief, actual damages caused by failure or refusal, and attorney's fees.

(e) Impact assessmentsImpact assessment"Impact assessment" means a documented risk-based evaluation of an automated decision tool that meets the criteria of this Act.Section 5 provided pursuant to subsection (d) of this Section are confidential and exempt from disclosure under the Freedom of Information Act.

Section 10 is the operational core of the Act, imposing parallel annual impact assessment obligations on deployers and developers of automated decision tools. Both must complete and document their assessments by January 1, 2026, and annually thereafter, plus upon any significant update. The deployer assessment must cover eight enumerated categories — tool purpose, outputs, data types, consistency with the developer's intended-use statement, discrimination risk, safeguards aligned with ethical AI principles, human oversight mechanisms, and validation methodology. The developer assessment covers six parallel categories, with the key difference that developers must assess foreseeable misuse in addition to intended use.

Subsection (d) establishes the enforcement mechanism: impact assessments must be produced to the Attorney General on request, with injunctive relief, actual damages, and attorney's fees available if a party refuses. Subsection (e) provides confidentiality protection by exempting assessments from the Freedom of Information Act.

Compliance actions 4 items
1
DeployersDeployer"Deployer" means a person, partnership, State or local government agency, or corporation that uses or modifies an automated decision tool to make a consequential decision.Section 5 must complete and document an annual impact assessmentImpact assessment"Impact assessment" means a documented risk-based evaluation of an automated decision tool that meets the criteria of this Act.Section 5 for each automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5 they use, covering tool purpose, outputs, data types, consistency with the developerDeveloper"Developer" means a person, partnership, State or local government agency, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the known intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by the deployer.Section 5's intended-use statement, algorithmic discriminationAlgorithmic discrimination"Algorithmic discrimination" means the condition in which an automated decision tool contributes to unjustified differential treatment or impacts disfavoring people on the basis of race, color, national origin, citizen or immigration status, families with children, creed, religious belief or affiliation, sex, marital status, the presence of any sensory, mental, or physical disability, age, honorably discharged veteran or military status, sexual orientation, gender expression or gender identity, or any other protected class under Illinois statute.Section 5 risks, ethical AI safeguards, human oversight mechanisms, and validation methodology.
H-02.3
2
DevelopersDeveloper"Developer" means a person, partnership, State or local government agency, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the known intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by the deployer.Section 5 must complete and document an annual impact assessmentImpact assessment"Impact assessment" means a documented risk-based evaluation of an automated decision tool that meets the criteria of this Act.Section 5 for each automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5 they design, code, or produce, covering tool purpose, outputs, data types, algorithmic discriminationAlgorithmic discrimination"Algorithmic discrimination" means the condition in which an automated decision tool contributes to unjustified differential treatment or impacts disfavoring people on the basis of race, color, national origin, citizen or immigration status, families with children, creed, religious belief or affiliation, sex, marital status, the presence of any sensory, mental, or physical disability, age, honorably discharged veteran or military status, sexual orientation, gender expression or gender identity, or any other protected class under Illinois statute.Section 5 risks from intended use and foreseeable misuse, ethical AI mitigation measures, and intended human oversight mechanisms.
H-02.3
3
DeployersDeployer"Deployer" means a person, partnership, State or local government agency, or corporation that uses or modifies an automated decision tool to make a consequential decision.Section 5 and developersDeveloper"Developer" means a person, partnership, State or local government agency, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the known intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by the deployer.Section 5 must perform an additional impact assessmentImpact assessment"Impact assessment" means a documented risk-based evaluation of an automated decision tool that meets the criteria of this Act.Section 5 as soon as feasible following any significant updateSignificant update"Significant update" means a new version, new release, or other update to an automated decision tool that materially changes its principal use, principal intended use, or expected outcome.Section 5 to an automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5.
H-02.3
4
DevelopersDeveloper"Developer" means a person, partnership, State or local government agency, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the known intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by the deployer.Section 5 and deployersDeployer"Deployer" means a person, partnership, State or local government agency, or corporation that uses or modifies an automated decision tool to make a consequential decision.Section 5 must provide any impact assessmentImpact assessment"Impact assessment" means a documented risk-based evaluation of an automated decision tool that meets the criteria of this Act.Section 5 performed under this Act to the Office of the Attorney General upon request. Assessments are confidential and exempt from FOIA disclosure.
R-02.2
Section 15
Statements provided to deployers
Developer

5 A developerDeveloper"Developer" means a person, partnership, State or local government agency, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the known intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by the deployer.Section 5 must provide a deployerDeployer"Deployer" means a person, partnership, State or local government agency, or corporation that uses or modifies an automated decision tool to make a consequential decision.Section 5 with a statement regarding the intended uses of the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5 and documentation regarding all of the following: (a) The known limitations of the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5, including any reasonably foreseeable risks of algorithmic discriminationAlgorithmic discrimination"Algorithmic discrimination" means the condition in which an automated decision tool contributes to unjustified differential treatment or impacts disfavoring people on the basis of race, color, national origin, citizen or immigration status, families with children, creed, religious belief or affiliation, sex, marital status, the presence of any sensory, mental, or physical disability, age, honorably discharged veteran or military status, sexual orientation, gender expression or gender identity, or any other protected class under Illinois statute.Section 5 arising from its intended use; (b) A description of the types of data used to program or train the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5; and (c) A description of how the automated decision toolAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5 was evaluated for validity and the ability to be explained before sale or licensing.

Section 15 imposes a supply-chain transparency obligation on developers. Before a deployer can use an automated decision tool, the developer must provide the deployer with a statement of intended uses and documentation covering three categories: known limitations (including foreseeable discrimination risks), data types used for programming or training, and pre-sale evaluation for validity and explainability. This information is what the deployer must reference when completing its own impact assessment under Section 10(a)(4).

Compliance actions 1 item
5
DevelopersDeveloper"Developer" means a person, partnership, State or local government agency, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the known intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by the deployer.Section 5 must provide deployersDeployer"Deployer" means a person, partnership, State or local government agency, or corporation that uses or modifies an automated decision tool to make a consequential decision.Section 5 with a statement of intended uses and documentation covering (1) known limitations including foreseeable algorithmic discriminationAlgorithmic discrimination"Algorithmic discrimination" means the condition in which an automated decision tool contributes to unjustified differential treatment or impacts disfavoring people on the basis of race, color, national origin, citizen or immigration status, families with children, creed, religious belief or affiliation, sex, marital status, the presence of any sensory, mental, or physical disability, age, honorably discharged veteran or military status, sexual orientation, gender expression or gender identity, or any other protected class under Illinois statute.Section 5 risks, (2) the types of data used to program or train the tool, and (3) how the tool was evaluated for validity and explainability before sale or licensing.
T-03.3
Section 20
Developer policies
Developer

6 A developerDeveloper"Developer" means a person, partnership, State or local government agency, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the known intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by the deployer.Section 5 must make publicly available, in a readily accessible manner, a clear policy that provides a summary of both of the following: (a) The types of automated decision toolsAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5 currently made available to others by the developerDeveloper"Developer" means a person, partnership, State or local government agency, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the known intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by the deployer.Section 5; and (b) How the developerDeveloper"Developer" means a person, partnership, State or local government agency, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the known intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by the deployer.Section 5 manages the reasonably foreseeable risks of algorithmic discriminationAlgorithmic discrimination"Algorithmic discrimination" means the condition in which an automated decision tool contributes to unjustified differential treatment or impacts disfavoring people on the basis of race, color, national origin, citizen or immigration status, families with children, creed, religious belief or affiliation, sex, marital status, the presence of any sensory, mental, or physical disability, age, honorably discharged veteran or military status, sexual orientation, gender expression or gender identity, or any other protected class under Illinois statute.Section 5 that may arise from the use of the automated decision toolsAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5 it currently makes available to others.

Section 20 requires developers to publish a publicly accessible policy summarizing the types of automated decision tools they offer and how they manage foreseeable algorithmic discrimination risks. This is a public-facing transparency obligation distinct from the confidential impact assessments under Section 10 and the deployer-facing documentation under Section 15.

Compliance actions 1 item
6
DevelopersDeveloper"Developer" means a person, partnership, State or local government agency, or corporation that designs, codes, or produces an automated decision tool, or substantially modifies an artificial intelligence system or service for the known intended purpose of making, or being a controlling factor in making, consequential decisions, whether for its own use or for use by the deployer.Section 5 must publicly post a clear, readily accessible policy summarizing (1) the types of automated decision toolsAutomated decision tool"Automated decision tool" means a system or service that uses artificial intelligence and has been specifically developed and marketed to, or specifically modified to, make, or be a controlling factor in making, consequential decisions.Section 5 they currently make available to others and (2) how they manage foreseeable algorithmic discriminationAlgorithmic discrimination"Algorithmic discrimination" means the condition in which an automated decision tool contributes to unjustified differential treatment or impacts disfavoring people on the basis of race, color, national origin, citizen or immigration status, families with children, creed, religious belief or affiliation, sex, marital status, the presence of any sensory, mental, or physical disability, age, honorably discharged veteran or military status, sexual orientation, gender expression or gender identity, or any other protected class under Illinois statute.Section 5 risks arising from use of those tools.
G-02.4

Passage Likelihood

Failed
Status Failed
Final action Rule 19(a) / Re-referred to Rules Committee

Legislative History

2024-02-09 Filed with the Clerk by Rep. Abdelnasser Rashid
2024-02-09 First Reading
2024-02-09 Referred to Rules Committee
2024-03-12 Assigned to Executive Committee
2024-04-05 Rule 19(a) / Re-referred to Rules Committee

Entry Last Reviewed

2026-05-16
AI generated