IL HB3529

Creates the Illinois High-Impact AI Governance Principles and Disclosure Act, requiring the Department of Innovation and Technology to adopt rules regulating businesses that use AI systems

Establishes 5 mandatory AI governance principles: safety (preventing harm), transparency (explaining how systems work), accountability (identifying responsible parties), fairness (preventing bias), and contestability (allowing individuals to challenge AI decisions)

Requires businesses using AI systems to publish annual compliance reports on their websites detailing system design, training data, testing metrics, risk mitigation strategies, and impact assessments, written in plain language with additional technical detail for specialized audiences

Imposes a $1,000 civil penalty for violations of the Act or rules adopted under it

Applies only to businesses with 10 or more employees and takes effect January 1, 2026