The Colorado General Assembly has concluded its 2024 legislative session without amending its recently passed artificial intelligence (AI) regulation, Senate Bill 24-205. The legislation, one of the nation’s most comprehensive state-level AI laws, is scheduled to go into effect in early 2025.
Passed earlier this year, Senate Bill 24-205 establishes new compliance requirements for developers and deployers of high-risk AI systems, with the primary aim of protecting consumers from ‘algorithmic discrimination’ — situations where AI systems produce biased or unfair outcomes based on race, gender, or other protected characteristics.
Supporters of the legislation hailed it as landmark consumer protection in an era increasingly shaped by advanced technologies. They argue that proactive regulation can prevent potential harms stemming from opaque AI systems making decisions that can affect citizens’ access to housing, employment, credit, and healthcare.
“This law places Colorado at the forefront of ensuring AI technology is used responsibly and equitably,” said proponents during the legislative hearings. “The goal is not to stifle innovation but to create guardrails that prevent harm.”
However, the law has faced considerable pushback from industry groups and business advocates, who claim the broad requirements could have a chilling effect on innovation. Critics argue the bill’s definition of ‘algorithmic discrimination’ and the obligations it imposes on AI developers are vague and may lead to legal uncertainty.
“By not refining the bill’s language during this session, the legislature left businesses in a difficult position as they prepare for compliance,” said a trade group representative.
Despite these concerns, legislative leaders decided not to revisit or revise the AI regulation during the session’s final weeks. As a result, businesses and AI developers will now focus on understanding and implementing the compliance measures before the law takes effect next year.
Colorado’s approach is being closely watched by other states and stakeholders across the tech industry. As AI technology becomes increasingly embedded in public and private decision-making processes, state-level legislation like Senate Bill 24-205 could serve as a model—or a warning—for policymakers nationwide.
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