Sweeping Colorado AI Bill Signed by Governor as He Urges Changes

May 18, 2024, 12:57 AM UTC

Colorado Gov. Jared Polis signed legislation Friday that will give the state the most far-reaching regulations on artificial intelligence in the nation.

Polis (D) said he was signing the bill “with reservations” in a letter to lawmakers, adding his “hope that it furthers the conversation, especially at the national level.”

He said that industry leaders and other parties should use the the time before the law takes effect to “fine tune the provisions and ensure that the final product does not hamper development and expansion of new technologies in Colorado.”

Some tech companies and industry groups such as the Consumer Technology Association urged the governor to reject the bill (S.B. 205), arguing it would inhibit innovation.

Lawmakers and other supporters argued the measure was needed in the absence of nationwide laws addressing potential threats from the technology.

The measure “is a watershed moment in the development of America’s approach to AI policy,” Tatiana Rice, the deputy director for US legislation at the Future of Privacy Forum, said in an a statement after the governor’s action.

The bill, which was passed on the last scheduled day of the legislative session on May 8, will require businesses to take steps to prevent potential bias from AI products in matters such as hiring, health care, and finance.

The mandates will include conducting impact assessments and giving customers details of the data used to train their AI models.

The attorney general will be authorized to promulgate rules on the legislation, which will take effect on Feb 1, 2026.

The Connecticut Senate passed similar legislation (S.B. 2) earlier this year that fell short in the House of Representatives amid a veto threat from Gov. Ned Lamont (D).

To contact the reporter on this story: Zach Williams at zwilliams@bloombergindustry.com

To contact the editor responsible for this story: Loren Duggan at lduggan@bgov.com

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