AhR is normally inactive and located in the cytoplasm bound to a complex of proteins. Upon binding a ligand, such as dioxin, AhR translocates to the nucleus where it dimerizes with the AhR nuclear translocator (ARNT). This complex then binds to specific DNA sequences known as xenobiotic response elements (XREs) to regulate the expression of target genes. These genes are primarily responsible for detoxification processes, including the induction of cytochrome P450 enzymes like CYP1A1.