Technology (Artificial Intelligence)

Creates the Preventing Algorithmic Pricing Discrimination Act. Requires any person who knowingly advertises, promotes, labels, or publishes a statement, display, image, offer, or announcement of personalized algorithmic pricing using consumer data specific to a particular individual must disclose that this price was set by an algorithm using the individual's personal data. Prohibits the use of algorithmic pricing under certain conditions. Provides that if there is a violation of the Act, the Attorney General may file a civil action requesting that an injunction be issued against the defendant to enjoin and restrain the continuance of the violation. Provides that notice must be given to the defendant of not less than 5 days, and the court may issue an injunction enjoining and restraining any further violation without requiring proof that any person has, in fact, been injured or damaged. Authorizes the court to impose a civil penalty of not more than $1,000 for each violation. Exempts any insurer licensed, regulated, or otherwise authorized to do business in the State or any excess lines insurer, including any persons, agents, or affiliates acting on behalf of the insurer. Exempts financial services, including, but not limited to, financial institutions, financial institution affiliates, broker-dealers, registered investment advisors, and entities that provide consumer credit products such as credit cards, personal loans, and mortgages. Amends the Consumer Fraud and Deceptive Business Practices Act. Makes a violation of the Preventing Algorithmic Pricing Discrimination Act an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. Defines terms. Limits home rule.

Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that a person shall not use artificial intelligence while engaging in trade and commerce to communicate with a consumer in a manner that may mislead or deceive a reasonable consumer into believing that the consumer is engaging with a human, unless the consumer is notified in a clear and conspicuous manner that the consumer is not engaging with a human. Provides that a person shall not use artificial intelligence to sell or offer to sell goods or services unless the consumer is notified in a clear and conspicuous manner that artificial intelligence is being used to sell or offer to sell goods or services and the consumer is given an option to request more information regarding the specific use of the artificial intelligence. Provides that a business entity that uses artificial intelligence while engaging in trade and commerce to communicate with a consumer shall give the consumer the option to communicate with a human during the business entity's ordinary business hours. Provides that a violation of the provisions constitutes an unlawful practice within the meaning of the Act.

Appropriates the amount of $250,000 from the General Revenue Fund to the Department of Central Management Services for the purpose of making a grant to Amp AI, doing business as Nozma, to conduct a procurement modernization and artificial intelligence pilot program. Effective July 1, 2026.

Amends the Medical Practice Act of 1987. Defines terms. Provides that a health facility, clinic, physician's office, or office of a group practice that uses generative artificial intelligence to generate written or verbal patient communications pertaining to patient clinical information shall ensure that the communications meet certain criteria. Provides that a communication that is generated by generative artificial intelligence and read and reviewed by a human licensed or certified health care provider is not subject to the amendatory provisions. Provides that a violation of the amendatory provisions by a licensed health facility or a licensed clinic is subject to penalties as implemented by the Department of Financial and Professional Regulation by rule. Provides that a violation of the amendatory provisions by a physician is subject to penalties as determined by the Illinois State Medical Board.

Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that it is an unlawful practice for any person to engage in a commercial transaction or trade practice with a consumer in which: (1) the consumer is communicating or otherwise interacting with a chatbot, artificial intelligence agent, avatar, or other computer technology that engages in a textual or aural conversation; (2) the communication may mislead or deceive a reasonable consumer to believe that the consumer is communicating with a human representative; and (3) the consumer is not notified in a clear and conspicuous manner that the consumer is communicating with an artificial intelligence system and not a human representative. Effective January 1, 2026.

Creates the Surveillance-Based Price and Wage Discrimination Act. Provides that a person shall not use surveillance data as part of an automated decision system to inform the individualized price assessed to a consumer for goods or services. Provides that a person shall not use surveillance data as part of an automated decision system to inform the individualized wage paid to an employee. Sets forth exemptions to the provisions. Provides that the Attorney General shall enforce the Act. Sets forth provisions concerning private rights of action and penalties for violations.

Creates the Artificial Intelligence Systems Use in Health Insurance Act. Provides that the Department of Insurance's regulatory oversight of insurers includes oversight of an insurer's use of AI systems to make or support adverse determinations that affect consumers. Provides that any insurer authorized to operate in the State is subject to review by the Department in an investigation or market conduct action regarding the development, implementation, and use of AI systems or predictive models and the outcomes from the use of those AI systems or predictive models. Provides that an insurer authorized to do business in Illinois shall not issue an adverse consumer outcome with regard to the denial, reduction, or termination of insurance plans or benefits that result solely from the use or application of any AI system or predictive model. Provides that any decision-making process for the denial, reduction, or termination of insurance plans or benefits that results from the use of AI systems or predictive models shall be meaningfully reviewed, in accordance with review procedures determined by Department rules, by an individual with authority to override the AI systems and determinations. Authorizes the Department to adopt emergency rules to implement the Act and to adopt rules concerning standards for full and fair disclosure of an insurer's use of AI systems. Makes a conforming change in the Illinois Administrative Procedure Act.

Creates the Artificial Intelligence Systems Use in Health Insurance Act. Provides that the Department of Insurance's regulatory oversight of insurers includes oversight of an insurer's use of AI systems to make or support adverse determinations that affect consumers. Provides that any insurer authorized to operate in the State is subject to review by the Department in an investigation or market conduct action regarding the development, implementation, and use of AI systems or predictive models and the outcomes from the use of those AI systems or predictive models. Provides that an insurer authorized to do business in Illinois shall not issue an adverse consumer outcome with regard to the denial, reduction, or termination of insurance plans or benefits that result solely from the use or application of any AI system or predictive model. Provides that any decision-making process for the denial, reduction, or termination of insurance plans or benefits that results from the use of AI systems or predictive models shall be meaningfully reviewed, in accordance with review procedures determined by Department rules, by an individual with authority to override the AI systems and determinations. Authorizes the Department to adopt emergency rules to implement the Act and to adopt rules concerning standards for full and fair disclosure of an insurer's use of AI systems. Makes a conforming change in the Illinois Administrative Procedure Act.

Creates the Illinois High-Impact AI Governance Principles and Disclosure Act. Makes findings. Defines terms. Requires the Department of Innovation and Technology to adopt rules regulating businesses that use AI systems to ensure compliance with the 5 principles of AI governance. Lists the 5 principles of AI governance. Requires the Department to adopt rules to ensure that a business that uses an AI system publishes a report on the business's website, with certain requirements. Provides for a civil penalty for violations. Limits applicability to businesses with 10 or more employees. Effective January 1, 2026.

Amends the School Code. Requires the State Board of Education to establish the State Instructional Technology Advisory Board, which shall collaborate with the State Board of Education to provide guidance, integration, oversight, and evaluation of education technologies, including, but not limited to, artificial intelligence technologies. Sets forth the membership of the Advisory Board and terms. Requires the State Board, with the Advisory Board, to develop standards concerning safety, transparency, data privacy, and educational quality for any artificial intelligence technology that may be used in schools and develop guidance for school districts and educators on the use of artificial intelligence in education. Requires the annual school district report to the State Board regarding educational technology capacity and policies to include student, teacher, and district use of artificial intelligence. Effective immediately.