Colorado lawmakers are moving to rewrite one of the most closely watched artificial intelligence laws and attempt to reset rules that govern how AI is used in decisions that affect jobs, housing, and access to services.
The proposal would scrap Colorado’s current AI law, SB24-205, passed in 2024, and replace it with new rules meant to address industry concerns while still protecting consumers.
“In 2024, the general assembly enacted Senate Bill 24-205, which created consumer protections in interactions with artificial intelligence systems,” the bill summary reads. “The bill repeals and reenacts those provisions with new requirements regarding the use of automated decision-making technology in consequential decisions.”
The move comes after months of pushback from the AI industry over Colorado’s 2024 law, which requires companies to check for and reduce bias in decisions like hiring, lending, and housing.
“I do think they have a valid argument in terms of the burdens that the Colorado policy would place on these companies,” Cody Barela, a partner at Armstrong Teasdale, previously told Decrypt. “The burden on them, in comparison to the delay that it causes in the AI race, might actually be a better argument.”
According to the new bill, developers would be required to provide documentation explaining how their systems work, what data they use, and their known limitations. They would also need to notify companies of material updates.
Companies using these systems would have to notify consumers when AI is involved in a decision, explain adverse outcomes in plain language, allow individuals to access and correct their data, and request a human review. Developers would also be required to provide documentation on how their systems work, the data they use, and their limitations, and to notify companies of significant updates.
