CO Enacts "High-Risk" AI Law Regulating Deployers And Developers, Including Health Care Stakeholders

On Friday, May 17, Colorado Governor Jared Polis, with noted reservations, signed into law SB205, a consumer protection law which imposes significant requirements on developers and deployers of "high risk" artificial intelligence (AI) systems, requires consumer transparency, and arms the Attorney General with oversight authority. Developers and deployers are defined broadly and would include health care stakeholders, such as hospitals, insurers, and digital health companies, who develop or deploy (use) high risk AI systems, if they are not otherwise exempt. The provisions of this law require developers and deployers to take certain actions by February 1, 2026.

Given Governor Polis' reservations, SB205 requirements in their current form may not be what is ultimately implemented. In his letter to the Colorado Assembly, Governor Polis expressed concerns about the law's approach to mitigating algorithmic discrimination, the complex compliance and reporting requirements