Lawmakers seek an intelligent approach to AI regulation in Colorado – The Business Journals

Listen to this article 4 min
The law has not taken effect, but opponents are already trying to make changes.
Colorado in 2024 became the first U.S. state to pass legislation meant to limit the potential harms of artificial intelligence. Now, opponents and supporters are trying to change the law before it’s even taken effect.
The law, Senate Bill 24-205, won’t kick in until February 2026.
The legislation aims to protect consumers from algorithmic discrimination, which occurs when AI perpetuates biases about different groups of people. Such situations could involve software algorithms amplifying systemic racism while deciding a person’s suitability for loans, jobs and housing.
Among the conditions listed in SB-205 is the requirement that consumers be told when AI is making important decisions about them. It also requires creators of high-risk artificial intelligence systems publicly disclose potential dangers of algorithmic discrimination within their software. The goal is to create accountability for software makers or businesses deploying AI that affects consumers.
Colorado’s technology industry, Gov. Jared Polis and others worried the bill’s broad reach and some of its definitions could chill a growing AI industry, harming Colorado’s reputation as a place to do business.
An AI task force of business, labor and policy leaders began convening to recommend changes to the law that could be adopted in the 2025 legislative session — recommendations expected to be made in February.
A Dec. 20 task force meeting showed that wide divisions remain among stakeholders.
“If we’re going to be the first state in the country to regulate this rapidly evolving technology in a comprehensive fashion, as Senate Bill 205 does, we need to be very sure we get it right,” said Mark Champoux, a Davis Graham lawyer presenting for a coalition anchored by the Colorado Technology Association and Colorado Chamber of Commerce.
The coalition seeks reforms that reduce companies’ required disclosures and give businesses the ability to “cure” problems with their use of AI before the state penalizes them.
Labor and civil society groups fret about changes to the law creating immunity for companies. Some of the law’s provisions should be strengthened, including prohibiting the sale of software with harmfully biased algorithms, said Matt Scherer, the Center for Democracy’s senior policy counsel for workers’ rights and technology policy.
Reimagine Denver 2025
25 years ago, Denver's economy thrived on IT, real estate & oil. DBJ will kick off 2025 by convening leaders from key industries like real estate, healthcare, sports & city planning to explore strategies for positioning the region for prosperity.
© 2025 American City Business Journals. All rights reserved. Use of and/or registration on any portion of this site constitutes acceptance of our User Agreement (updated August 13, 2024) and Privacy Policy (updated December 17, 2024). The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of American City Business Journals.

source

Leave a Reply

Your email address will not be published. Required fields are marked *

Back To Top