On May 17, 2024, Colorado Governor Jared Polis signed
into law Senate Bill (SB) 24-205, “Concerning Consumer
Protections in Interactions With Artificial Intelligence
Systems” (the “Colorado Artificial Intelligence (AI)
Act”), a groundbreaking measure designed to regulate the
private-sector use of AI systems, and, specifically, the risk of
algorithmic discrimination arising from the use of high-risk AI
systems. The law, which will take effect on February 1, 2026, will
make Colorado the first U.S. state to enact comprehensive
legislation regulating the use and development of AI
systems.
When the governor signed SB 24-205, he expressed his hope
and expectation that, before the effective date, there would be
amendments to the law based on stakeholder engagement. As a result,
the structure described below may be amended before the effective
date and employers may want to monitor additional
developments.