Illinois Anti-Discrimination Law to Address AI Goes Into Effect on 1 January 2026

by K&L Gates LLP, Claire Healy, Kathleen Parker, Erinn Rigney - JD Supra

Effective 1 January 2026, Illinois House Bill 3773 (HB 3773) amends the Illinois Human Rights Act, (IHRA) to expressly prohibit employers from using artificial intelligence (AI) that “has the effect of subjecting employees to discrimination on the basis of protected classes.” Specifically, Illinois employers cannot use AI that has a discriminatory effect on employees, “[w]ith respect to recruitment, hiring, promotion, renewal of employment, selection for training or apprenticeship, discharge, discipline, tenure, or the terms, privileges, or conditions of employment.”

Read more: https://www.jdsupra.com/legalnews/illinois-anti-discrimination-law-to-3367364/?origin=CEG&utm_source=CEG&utm_medium=email&utm_campaign=CustomEmailDigest&utm_term=jds-article&utm_content=article-link

Utah scales back reach of generative AI consumer protection law

by Davis Polk

The Utah legislature amended its Artificial Intelligence Policy Act to focus on “high-risk” generative AI interactions and to establish a new safe harbor.

Background

In March 2024, Utah became the first state to enact legislation specifically targeting generative AI (Gen AI).  The Utah Artificial Intelligence Policy Act (UAIPA), which took effect on May 1, 2024, imposed certain disclosure obligations on entities using Gen AI tools to interact with their customers and confirmed that those entities cannot avoid liability under Utah consumer protection law because the violative statement or act derived from Gen AI.  The UAIPA also sought to encourage AI innovation by establishing the Office of Artificial Intelligence Policy to administer an AI Learning Laboratory Program, consult with businesses and other stakeholders about potential regulatory proposals, and grant temporary “regulatory mitigations” to entities developing AI systems.

Read more: https://www.davispolk.com/insights/client-update/utah-scales-back-reach-generative-ai-consumer-protection-law

California’s AI Laws Are Here—Is Your Business Ready?

by Jeewon K. Serrato, Christine Mastromonaco, Shruti Bhutani Arora, Andrew Caplan, Erin Choo, Mia Rendar, Leighton Watson, Anne M. Voigts, Shani Rivaux, Johnna Purcell, Dayo Feyisayo Ajanaku - Pillsbury

January 1, 2025, marked the start of a series of significant AI laws going into effect in California. California’s 18 new AI laws represent a significant step toward regulating this space, establishing requirements regarding deepfake technology, AI transparency, data privacy and use of AI in the health care arena. These laws reinforce the state’s desire to be a pioneer in this space.

This article provides a detailed look at the enacted legislation, addresses compliance timelines and serves as a guide for businesses as they navigate compliance with California’s evolving AI landscape.

Read more: https://www.pillsburylaw.com/en/news-and-insights/california-ai-laws.html

California Takes Steps to Regulate the Use of AI for Significant Employment Decisionsby

by Jonathan P. Slowik, Jennifer J. McDermott of Proskauer Rose LLP - The National Law Review

On November 8, 2024, the California Privacy Protection Agency (CPPA) voted 4-1 to proceed with formal rulemaking regarding automated decision-making technology (“ADMT”), which the draft regulations define as “any technology that processes personal information and uses computation to execute a decision, replace human decisionmaking, or substantially facilitate human decisionmaking.” If enacted, the regulations would impose sweeping requirements on employers who rely on assistance from artificial intelligence (AI) tools in making employment decisions including hiring; allocation of work; compensation and benefits; promotion; and demotion, suspension, or termination. The draft regulations take a similar approach to laws that have passed in New York and laws that are likely to be enacted in Colorado, in that they require certain disclosures and risk assessments, and require that employees and applicants have the ability to opt-out of being evaluated by AI in some contexts. 

Read more: https://natlawreview.com/article/california-takes-steps-regulate-use-ai-significant-employment-decisions

Landmark AI Discrimination Bill Stalls Out in California Legislature, But Other AI Measures Advance

by Benjamin Ebbink, Fisher Phillips - JD Supra

California lawmakers knocked back a chance to pass a groundbreaking AI discrimination that would have required employers to provide notification – and perhaps an accommodation – to workers when artificial intelligence is used in certain critical ways during hiring or employment. The bill, which would have also required employers and AI developers to establish robust governance programs and conduct impact assessments to mitigate against algorithmic discrimination, was poised for passage but ultimately lawmakers could not agree on a final version before the legislative session ended at midnight on Saturday night. We expect to see legislators take another crack at such a proposal in 2025, so this isn’t the last you’ve heard of this proposal. Meanwhile, three other AI-related bills advanced to the governor’s desk and will be closely monitored before the September 30 deadline for action. What do employers need to know?

Read more: https://www.jdsupra.com/legalnews/landmark-ai-discrimination-bill-stalls-9064254

AI in the Workplace: The New Legal Landscape Facing US Employers

by Kimberley Lunetta, Michael Schlemmer, Zachary Shine - Morgan Lewis - JD Supra

Artificial intelligence (AI) is quickly transforming the employment landscape, automating tasks, streamlining processes, and enhancing decision-making. At the same time, the technology raises concerns about potential biases, accuracy, and increasingly complex legal compliance.

As AI’s influence grows in the United States, so too has government oversight. Lawmakers and policymakers—from the Biden administration to city governments—have issued guidance, policies, and laws to govern the use of AI in the workplace, giving employers a new legal landscape to navigate.

Read more: https://www.jdsupra.com/legalnews/ai-in-the-workplace-the-new-legal-8539979

New Jersey Considers Restricting Use of Artificial Intelligence in the Hiring Process

by Fox Rothschild LLP, Brian Frederick, Kenneth Rosenberg - JD Supra

As employers have increasingly used artificial intelligence (AI) and other Automated Employment Decision Tools (AEDTs) to assist human resource professionals and hiring managers in reviewing voluminous resumes, federal and state governmental authorities have become concerned that these tools are disproportionately screening out female and minority applicants.

Read more: https://www.jdsupra.com/legalnews/new-jersey-considers-restricting-use-of-3885587/?origin=CEG&utm_source=CEG&utm_medium=email&utm_campaign=CustomEmailDigest&utm_term=jds-article&utm_content=article-link

Consumer Product Companies Using AI Should Think Past Compliance

by Raqiyyah Pippins, Peter Schildkraut - Bloomberg Law

Many consumer product companies—like other businesses—are turning to artificial intelligence-powered and automated decision-making, or ADM, technologies for operating efficiencies and enhanced customer experiences.

Companies embracing AI should look beyond compliance and develop a comprehensive risk management strategy.

Government enforcers are watching, and recent cases and agency guidance highlight the perils of not adopting appropriate safeguards for AI deployment.

Read more: https://news.bloomberglaw.com/daily-labor-report/consumer-product-companies-using-ai-should-think-past-compliance

SETTING THE STAGE: CONNECTICUT SENATE BILL 2 LAYS THE GROUNDWORK FOR RESPONSIBLE AI IN THE STATES

by Tatiana Rice - Future of Privacy Forum

Last night, on April 24, the Connecticut Senate passed SB 2, marking a significant step toward comprehensive AI regulation in the United States. This comprehensive, risk-based approach has emerged as a leading state legislative framework for AI regulation. If enacted, SB 2 would stand as the first piece of legislation in the United States governing the private-sector development and deployment of AI with comparable scale to the EU AI Act. The law would become effective February 1, 2026. 

Read more: https://fpf.org/blog/setting-the-stage-connecticut-senate-bill-2-lays-the-groundwork-for-responsible-ai-in-the-states/?mkt_tok=MTM4LUVaTS0wNDIAAAGStS6CzVVML2VtJf5Zhz1I-t0eZp3fW2HB5yTtRY1pPvE5_owKZI3pue3Qw4hAu3K3cJXmPdLdKwD6q4JVwo-I3hSvgOKvFLcr3D9hjxJVzFq_

Massachusetts AG Campbell Issues Advisory on Artificial Intelligence

by Foley Hoag LLP, Daniel Carlston - JDSupra

Last month, we recapped the recent activity of state Attorneys General in the artificial intelligence (AI) space, including relevant enforcement actions, state legislative and policy development, and coalition letters to Congress and federal agencies.

On April 16, Massachusetts AG Andrea Campbell issued a legal advisory providing guidance to developers, suppliers, and users of AI on their obligations under state and federal consumer protection, anti-discrimination, and data security laws. Among other things, the advisory describes:

Read more: https://www.jdsupra.com/legalnews/massachusetts-ag-campbell-issues-8744815/