A Model for National Regulation

Colorado has taken a significant step in regulating artificial intelligence (AI) with the passage of the Colorado AI Act (SB24-205), making it the first state in the U.S. to implement comprehensive AI regulations. Signed by Governor Jared Polis on May 17, 2024, this legislation aims to prevent algorithmic discrimination and promote transparency and accountability in AI usage.

The Colorado AI Act focuses on “high-risk AI systems,” defined as those making consequential decisions that significantly affect consumer opportunities in areas such as education, employment, finance, healthcare, housing, and legal services . This law mandates developers and deployers of these AI systems to take proactive steps to mitigate risks and ensure fairness.

Key Provisions of the Colorado AI Act

1. Obligations for Developers and Deployers: Developers must document and disclose the types of data used to train AI systems, foreseeable risks, and measures taken to mitigate algorithmic discrimination. Deployers are required to implement risk management policies, conduct annual impact assessments, and notify consumers about AI usage and their rights .

2. Consumer Protections: The law mandates transparency and accountability to prevent algorithmic discrimination, which could lead to unlawful differential treatment based on protected characteristics like race, gender, or disability. Developers and deployers must notify the Colorado Attorney General within 90 days of discovering any discriminatory outcomes .

3. Implementation Timeline: The law will go into effect on February 1, 2026, providing businesses time to comply with the new requirements. Governor Polis has emphasized the need for further refinement and a cohesive federal approach to AI regulation to avoid stifling technological innovation .

Implications for Businesses and AI Governance

The Colorado AI Act is expected to influence AI governance nationwide, serving as a model for other states considering similar legislation. This move aligns with our vision at Av{AI}lable Legal Solutions, where we harness AI to make legal services more accessible and equitable. By ensuring ethical AI use, this law protects consumers and promotes justice, resonating with our mission to leverage AI for leveling the legal playing field.

For businesses operating in Colorado or using AI systems that impact Colorado residents, understanding and complying with this new law is crucial. The Colorado AI Act mandates detailed disclosures, rigorous risk management protocols, and comprehensive impact assessments, setting a high bar for AI accountability.

As we navigate these new regulations, Av{AI}lable Legal Solutions is committed to helping businesses and individuals understand and adapt to these changes. Our goal is to ensure that AI technologies are used responsibly, fostering an environment where innovation and ethical standards coexist harmoniously.