On May 17, 2024, Colorado made history by enacting a law regulating the use of artificial intelligence, requiring disclosure of AI use in critical decision-making and aiming to enhance transparency while reducing discrimination. The legislation, effective from February 1, 2026, sets a new precedent for AI regulation at the state level.
On May 17, 2024, Colorado became the first U.S. state to enact a law regulating artificial intelligence (AI) when Governor Jared Polis signed Senate Bill 205, despite expressing concerns about its potential impact on innovation. This legislation, effective from February 1, 2026, mandates that certain companies using AI for critical decision-making must disclose its use and purpose to affected individuals, such as job applicants or those seeking housing or financial services. The law aims to enhance transparency and reduce discrimination by requiring developers to disclose how AI systems are tested for bias.
The bill, championed by State Sen. Robert Rodriguez and Rep. Brianna Titone, faced opposition from tech industry groups and civil rights organizations, who argued over the necessity of state versus federal regulation. Rodriguez and Titone stressed the urgency of state-level intervention in light of rapid AI advancements. The law’s provisions include exemptions for small businesses and protections for trade secrets, with enforcement by the Colorado attorney general.
Reflecting a broader trend, other states and the European Union are also developing AI regulatory frameworks. However, Colorado’s legislation stands out as one of the first comprehensive attempts to oversee AI practices statewide.
