Colorado has a first-in-the-nation law for AI — but what will it do?

For those excited — or concerned — about how AI could reshape society, Colorado is a place to watch, as the first state in the country to roll out comprehensive regulations on the use of artificial intelligence systems in companies’ decision-making. 

The new law won’t go into effect until 2026 — and a state task force will be working on updates to it in the meantime — but backers say the goal is to protect the public from any potential bias or discrimination embedded in AI systems, and to set guardrails to make sure the technology is used ethically as companies continue to incorporate it and expand its role in their decision making. 

“Whether (people) get insurance, or what the rate for their insurance is, or legal decisions or employment decisions, whether you get fired or hired, could be up to an AI algorithm,” warns Democratic state Rep. Brianna Titone, one of the bill’s main sponsors.

Colorado’s new law requires companies to inform people when an AI system is being used, and, if someone thinks the technology has treated them unfairly, allows them to correct some of the input data or file a complaint. It won’t allow an individual to sue over AI use, but sets up a process to look into potential consequences for bad actors.