By Amy Schabacker Dufrane
For the last few years, the impact of AI in the workplace has seemed topermeate every conversation, every article, and every conference session. There has been an underlying—and often overwhelming—drumbeat that AI-driven tools will disrupt HR and employment-related decisions. The time to wait and see is behind us, as state legislatures move quickly to regulate AI in the workplace, and companies grapple with establishing internal policies.
This isn’t the first time that nascent technology has opened new markets and reshaped existing ones. Ironically, many of these technologies have become commonplace, and the initial friction has dissipated. 5G, the standard for mobile communications, was a leap forward, performing (by some estimates) as much as 100 times faster than its predecessor, 4G. 3D printing has reshaped manufacturing while reducing waste and lowering costs. The familiar “As-a-Service” model deployed by so many technology offerings was once seen as disruptive, forcing rapid change and displacing jobs. Taking it a step further, Netflix and other streaming services have forever changed the way we consume movies and entertainment.
In each case, uncertainty was an early-stage hallmark. Resistance to disruption is a normal reaction that can be a short- or long-term challenge. Organizations with an appetite for innovation embrace it. Those less nimble or eager for change might hesitate or reject it entirely. With each new twist, calls for regulation increase as opaque technologies such as Black Box AI move closer to reshaping how business is conducted.
We’re already seeing a flurry of states regulating AI use. In Illinois, a new law addressing the use of AI in the workplace took effect on January 1, 2026. It applies to employers (as well as employment agencies and labor organizations) using AI for hiring, promotion, and termination decisions. And it applies to all employers, regardless of whether the company has a physical location in Illinois. The law broadly defines AI as generative AI and any machine-based system that generates outputs that influence employment decisions. The Illinois Department of Human Rights and the state’s Human Rights Commission will enforce the law.
California has also enacted new workplace laws, defining AI broadly and focusing on regulating actions versus regulating inferences. The predictive characteristics of valuable technologies have, in certain cases, become liabilities. Unregulated workplace automation is under a microscope, potentially removing competitive advantages and adding levels of complexity that can decrease efficiency.
Complying with a patchwork of state-level regulations is no easy task. It’s a drain on precious HR resources that are already stretched. Federal policymakers continue to signal that they will standardize AI in the business sector. A similar scenario occurred with the U.S. Labor Law WARN Act and corresponding Mini-WARN Acts across a range of states. Violations result in harsh consequences, both in terms of lawsuits and the impact to brand reputation.
One example is a California lawsuit filed against an artificial intelligence hiring platform vendor that predicts an applicant’s fit for a job opening using massive amounts of data from online resumes and job listings. The suit specifically asserts that the Fair Credit Reporting Act (FCRA) was violated because the technology drew inferences about job candidates without providing required notice. Concurrently, a class action lawsuit is alleging that a vendor’s AI-driven applicant screening tools created systematic bias against older job seekers.
As HR professionals, we need to be prepared to address today’s AI realities and anticipate the progression of its effects. That said, we cannot field the brunt of it on our own. Engaging a trusted circle of advisors within your organization, as well as learning from external experts, will provide a foundation while the seismic shifts of AI continue to evolve. HRCI’s course catalog includes the HRCI Pro Series: AI for HR, as well as courses like Artificial Intelligence for HR Professionals, Artificial Intelligence and the Employee Experience, Generative AI for HR Professionals, and other relevant companion topics. We’re all on the same journey, but it’s no longer in the future. It’s unfolding quickly and requires your attention now.
