Colorado State Legislature Passes AI Bill With The Potential To Broadly Regulate AI

On Wednesday, May 8, the Colorado state legislature passed SB 205, a bill that is focused on preventing the discriminatory effects of high-risk artificial intelligence (AI). Although purportedly narrow, if the bill is signed into law by the Governor of Colorado, Colorado would be the first state to pass a broad AI law that imposes substantive requirements on businesses that develop and use AI systems. This would create the potential for Colorado to set a baseline for the steps businesses must take to protect consumers from problematic uses of AI, even outside of high-risk systems where there is the potential for discriminatory effects. Also notable is the fact that the bill includes a general AI disclosure requirement for any business that uses AI to interact with consumers.