Andrade Measure Protecting Consumers from AI-based Discrimination Becomes Law

CHICAGO – Jobseekers and families applying for loans or credit will be better protected from high-tech discrimination under a new law championed by state Rep. Jaime Andrade, D-Chicago,
prohibiting employers from using AI technology to racially profile applicants.

“I have long made it my mission to advance consumer-conscious legislation that puts everyday families first, while making sure our state remains competitive in the tech and innovation sphere,” Andrade said. “Artificial intelligence has limitless potential for improving health outcomes, keeping people safe and finding solutions for the toughest challenges we as Americans face. But, we cannot let these possibilities outweigh genuine concerns rising from our communities. Families and job applicants already face a tough job market and rising challenges to a stable financial future. We cannot allow artificial intelligence to be used, willingly or otherwise, to make that better future out of reach for struggling families. I’m proud to have joined the Governor and my colleagues in the House and Senate to pass this needed bill.”

Advocates for fair employment and data security experts have warned that new advancements in AI technology could be used to unfairly disqualify people applying for jobs, mortgages, or credit by analyzing variables that can serve as a clue or proxy for an individuals’ race. In response, the Andrade-backed House Bill 3773 bans employers from using AI to discriminate against people of color or low-credit individuals based on race and ZIP code. Housing and neighborhood demographics, websites visited, and other consumer information would be banned from use in employment or credit applications.

House Bill 3773 passed with overwhelming bipartisan support and was signed into law on Friday, Aug. 9.