Colorado Governor Signs Senate Bill 205 Into Law, Adopting a Risk-based Approach to Algorithmic Consumer Discrimination
Summary
On May 17, 2024, Colorado Governor Jared Polis signed Senate Bill 205 into law, which adopts a risk-based approach to algorithmic consumer discrimination and imposes new requirements on developers and deployers of high-risk AI systems. The bill shares some similarities with the EU AI Act, for example, the bill uses “deployer” to describe using high-risk AI in the course of business and defines a “high-risk artificial intelligence system” as one that “makes, or is a substantial factor in making, a consequential decision.” Consequential decisions include those affecting education, employment, essential government services, finance, health care, housing insurance and legal services. Developers and deployers of high-risk AI systems are required to take reasonable care to protect consumers, implement a risk management program and maintain documentation regarding risks and mitigation. The bill also requires disclosure to consumers when they are interacting with an AI, unless it would be obvious to a reasonable person. The law becomes effective on February 1, 2026. A more in-depth analysis of the bill is available here on Akin’s Data Dive blog. On May 24, 2024, Colorado Governor Jared Polis signed House Bill 1147 into law, which “regulate[s] the use of deepfakes produced using generative artificial intelligence in communications about candidates for elective office.” The bill additionally grants greater authority to an administrative hearing officer under the “Fair Campaign Practices Act” to impose civil penalties for individuals who distribute a form of communication that includes a deepfake related to a political candidate. In an instance where such deepfakes are produced, a clear and understandable disclosure statement is required. If a person believes there has been such a violation, they can file a complaint with the office of the secretary of state.
