On May 17, 2024, Colorado Governor Jared Polis signed into law Senate Bill 24-205, known colloquially as the Colorado Artificial Intelligence Act (hereinafter the CAIA). 1 . The legislation is formally titled in the document as “An Act Concerning Consumer Protections for Interactions with Artificial Intelligence,” but many practitioners have been referring to the law as the “Colorado AI Act” or the “Colorado Artificial Intelligence Act.” )) This legislation, set to take effect on February 1, 2026, makes Colorado the second U.S. state to enact a major artificial intelligence consumer protection law, reflecting another significant step towards state-level regulation of AI. Colorado’s law follows one enacted in Utah in March, 2 ). The CAIA also follows draft regulations under the California Privacy Protection Act (CPPA) see infra at n. 39. )) as well as a New York City law passed in 2021 affecting automated employment decisions. 3 . )) However, the CAIA imposes farther-reaching requirements, including a new general duty of care for developers and deployers of AI to protect individuals from algorithmic discrimination—which Colorado defines as any differential “treatment or impact” resulting from the use of an artificial intelligence system—on the basis of protected characteristics. 4 The CAIA has been compared to the European Union’s recent AI Act, although it is less stringent and more narrowly drawn in several key ways. 5 The CAIA affects predictive artificial intelligence systems which make decisions, not newer generative artificial intelligence like ChatGPT which create content.
In the absence of congressional action, Colorado’s law may help to set the tone for predictive artificial intelligence regulation nationwide, and it may impact the behavior of developers and deployers across state lines as they seek compliance with Colorado’s requirements. Practitioners note that Colorado’s law may influence other states’ pending legislation, 6 and disputes concerning its requirements may first arise in employment disputes. 7 Definitions and Obligations
The CAIA’s goal is to protect individuals from algorithmic discrimination by artificial intelligence systems operating in Colorado. Specifically, it protects people from artificial intelligence systems which are “high-risk” because they make or substantially help to make “consequential decisions” regarding humans. […]
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