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Colorado Makes History: First State to Enact Comprehensive AI Legislation

 |  May 14, 2024

The Colorado House of Representatives has voted 41-22-2 in favor of SB 205, a comprehensive artificial intelligence (AI) bill. Following the Senate’s approval on May 3, Colorado stands poised to become the first state to enact such extensive legislation in the realm of AI.

The bill, if signed into law by Governor Jared Polis, promises to establish a robust regulatory framework for developers and implementers of “high-risk” AI systems. These are defined as systems playing a significant role in consequential decisions affecting consumers.

A key focus of SB 205 is the mitigation of algorithmic discrimination, where individuals or groups are disadvantaged based on protected characteristics. To achieve this, the legislation mandates a duty of reasonable care on high-risk AI developers and deployers. The Colorado Attorney General would exclusively enforce these provisions, with compliance presumed if the requirements outlined in the bill are met.

Read more: Chile Proposes Legislation to Regulate Artificial Intelligence

Transparency emerges as a cornerstone of the legislation. Entities deploying AI systems intended for consumer interaction must disclose this fact unless it’s already evident. Moreover, all developers and deployers are obliged to make public statements detailing the types of high-risk AI they handle, how they address algorithmic discrimination risks, and updates whenever modifications are made.

For high-risk AI developers, additional obligations include disclosing information on potential harmful uses, training data, performance evaluations, and measures to combat algorithmic discrimination. Crucially, they must promptly notify the Attorney General and all relevant parties of any identified or foreseeable risks of algorithmic discrimination arising from their systems’ intended applications.

Colorado’s move reflects a growing awareness of the need for legislative oversight in the rapidly evolving AI landscape. By prioritizing consumer protection and algorithmic fairness, the state sets a precedent for others to follow in navigating the complexities of AI regulation.