The Consumer Protections for Artificial Intelligence Act in Colorado, also known as SB24-205, is a pioneering piece of legislation aimed at regulating high-risk AI systems [4]. The law was signed by Colorado Governor Jared Polis on May 17, 2024 [4] and is set to take effect on February 1, 2026 [4]. This law makes Colorado the first state in the nation to enact broad restrictions on private companies using AI [2].
The Act imposes a duty of “reasonable care” on both developers and deployers of high-risk AI systems to protect consumers from any known or reasonably foreseeable risks of algorithmic discrimination [6]. Algorithmic discrimination is based on actual or perceived age, color, disability, ethnicity, genetic information, limited proficiency in the English language, national origin, race, religion, reproductive health, sex, veteran status, or other classification protected under the laws of Colorado or federal law [6].
For developers, the Act requires them to:
- Use reasonable care to avoid algorithmic discrimination in the high-risk system [1].
- Make available to a deployer of the high-risk system a statement disclosing specified information about the high-risk system [1].
- Disclose to the attorney general and known deployers of the high-risk system any known or reasonably foreseeable risk of algorithmic discrimination, within 90 days (about 3 months) after the discovery or receipt of a credible report from the deployer [1].
For deployers, the Act requires them to:
- Use reasonable care to avoid algorithmic discrimination in the high-risk system [1].
- Implement a risk management policy and program for the high-risk system [1].
- Annually review the deployment of each high-risk system deployed by the deployer to ensure that the high-risk system is not causing algorithmic discrimination [1].
- Provide a consumer with an opportunity to correct any incorrect personal data that a high-risk artificial intelligence system processed in making a consequential decision [1].
- Provide a consumer with an opportunity to appeal, via human review if technically feasible, an adverse consequential decision concerning the consumer arising from the deployment of a high-risk artificial intelligence system [1].
This Act is a significant step towards ensuring fairness and transparency in the use of AI systems, particularly those that make consequential decisions affecting consumers [1].
Sources:
- Colorado Enacts Groundbreaking AI Consumer Protection Legislation …
- Colorado Passes Consumer Protections in Interactions with AI
- Colorado Adopts Comprehensive AI Act Imposing Broad Disclosure Requirements
- Consumer Protections for Artificial Intelligence | Colorado General …
- Colorado Adopts Comprehensive AI Act Imposing Broad Disclosure Requirements
- Colorado’s Artificial Intelligence Act: What Employers Need to Know