Press Release: Colorado Passes First-in-the-Nation Artificial Intelligence Consumer Protection Law
For Immediate Release
Date: June 4, 2024
Colorado Passes First-in-the-Nation Artificial Intelligence Consumer Protection Law
Denver, CO – On May 17, 2024, Governor Jared Polis signed SB24-205—groundbreaking legislation that will protect Colorado consumers using artificial intelligence (AI) systems. This first-in-the-nation law—the most far-reaching AI legislation in the country—sets reasonable standards for transparency and accountability in AI, ensuring that these technologies are developed and deployed with fairness and ethical considerations at their core.
Senate Majority Leader Robert Rodriguez, a Prime Sponsor of the bill in the Senate, hailed its passage as a significant step forward: “With the signing of SB24-205, Colorado is leading the way in ensuring that AI technologies are used responsibly. This legislation is not just about regulating technology; it’s about protecting the rights and dignity of every Coloradan. By establishing these baselines, we are setting an example for the rest of the country to follow, proving that responsible innovation and consumer protection can go hand in hand.”
State Representative Brianna Titone, a Prime Sponsor of the bill in the House, highlighted the broader impact of the bill: “By setting high standards for AI accountability and transparency, we are not only protecting consumers but also fostering an environment of trust and innovation in our state. This law encourages developers to prioritize ethical considerations in their work, which will lead to more robust and fair AI systems while allowing the technology to grow sustainably by reducing the negative industry-wide effects of poor development. It’s about creating a balanced ecosystem where technological advancements can thrive without sacrificing the principles of justice and equality.”
State Representative Manny Rutinel, a Prime Sponsor of the bill in the House, emphasized the importance of commonsense Artificial Intelligence regulation that protects vulnerable communities: “AI is an increasingly powerful tool that has the potential to transform our lives in many positive ways, but it must be developed and used ethically and responsibly. This first-in-the-nation Artificial Intelligence law provides necessary safeguards to protect workers, tenants, and other consumers from biased and unfair AI systems, allowing the technology to grow more safely and sustainably. We must ensure that the racism, sexism, ableism, and other forms of discrimination from our past aren’t propagated into our future by hidden and powerful algorithms. This bill is a crucial step toward making technology work for everyone, not just a privileged few.”
Colorado Attorney General Phil Weiser underscored the bill's significance: “SB24-205 sets a new standard for AI governance. This law ensures that AI technologies are used in a manner that is transparent, fair, and accountable, protecting consumers and fostering trust in these powerful tools. Colorado is demonstrating national leadership by addressing the ethical implications of AI and ensuring that these systems operate in the public interest.”
A Colorado AFL-CIO consultant, Kjersten Forseth, outlined the bill's importance, stating: “As AI becomes more integrated into employment practices, it is vital that workers are safeguarded from unjust outcomes. SB 205 provides a framework that promotes equity and transparency, ensuring that employees are treated more fairly.”
The Center for Democracy & Technology (CDT) also voiced its support for the new law, with CDT CEO and President Alexandra Givens adding: “SB24-205 is a significant step towards ensuring that AI systems are developed and deployed in ways that respect individual rights, promote fairness, and shed some much-needed light on the ways companies are using AI systems to make key decisions about our lives. We commend Colorado for its leadership in this critical area. This law addresses pressing issues in AI governance by providing workers and consumers with some basic information and safeguards that will help protect them from biased or error-prone AI systems. It provides a solid foundation for bringing transparency and accountability to the shadowy world of AI-driven decisions.”
SB24-205 introduces comprehensive measures to safeguard consumers and ensure ethical AI practices. The bill mandates that developers and deployers of high-risk AI systems use reasonable care to avoid algorithmic discrimination by actively identifying and mitigating biases that could unfairly impact individuals based on protected characteristics such as race, gender, and disability, as well as by conducting regular impact assessments to evaluate the effects of AI systems on consumers. Further, SB24-205 protects consumers by ensuring that they are adequately informed in their interactions with high-risk AI systems and by giving them the right to correct personal data and appeal consequential decisions made by these systems, with the possibility of human review.
The bill also ensures the transparency of AI system development by requiring developers to disclose detailed information about the functionality, decision-making processes, and potential risks of discrimination associated with their systems. Additionally, annual reviews are enforced to maintain accountability amongst developers. Moreover, developers and deployers must issue public statements detailing the types of high-risk AI systems they use and the measures they have taken to manage and mitigate known or foreseeable risks, further promoting transparency and accountability.
Governor Polis’s signing of SB24-205 marks a significant step in safe and responsible AI governance, demonstrating Colorado’s commitment to leading the nation in ethical and responsible technology use. This landmark legislation sets a new standard for consumer protection and AI accountability, ensuring that AI systems are transparent and fair, and that their benefits are enjoyed by everyone.
For further information, please contact:
Representative Manny Rutinel, manny.rutinel.house@coleg.gov
Senator Robert Rodriguez, robert.rodriguez.senate@coleg.gov
Representative Brianna Titone, brianna.titone.house@coleg.gov
Media Contact for Attorney General Phil Weiser, Lawrence Pacheco: lawrence.pacheco@coag.gov
