Dive Brief:
- Colorado lawmakers on Monday introduced Senate Bill 318, a bill that would revamp the state’s landmark artificial intelligence law set to go into effect Feb. 1, 2026. Under the current law, Colorado deployers of “high-risk artificial intelligence systems,” including employers and others involved in employment decisions, must take “reasonable care” to prevent discrimination.
- SB 318 would create exemptions for small businesses and institute a longer ramp for implementation. Initially set to apply to companies with more than 50 workers, the amended bill would apply to companies with more than 100 employees worldwide by April 1, 2029, after a series of phase-ins.
- Gov. Jared Polis said in a signing statement of Senate Bill 205, the original AI law, that it could “tamper innovation and deter competition in an open market.” Lawmakers have until May 7, when the legislature adjourns, to approve the bill.
Dive Insight:
The proposed bill was sponsored by Democratic Sen. Robert Rodriguez and Democratic Rep. Brianna Titone and would reduce some administrative burden on small businesses, remove the requirement for “reasonable care” to be made in decisions and change the grounds on which consumers can appeal adverse decisions, among other changes.
Specifically, the bill "requir[es] a deployer to include in an impact assessment whether the system poses any known or reasonably foreseeable risks of limiting accessibility for certain individuals, an unfair or deceptive trade practice, a violation of state or federal labor laws, or a violation of the ‘Colorado Privacy Act.’”
In signing Senate Bill 205 into law last year, Polis recognized it was “among the first in the country to attempt to regulate the burgeoning artificial intelligence industry on such a scale.”
He recommended a federal approach to AI regulation but, in its absence, encouraged lawmakers “to significantly improve” the state law before it would take effect.
“...While the guardrails, long timeline for implementation and limitations contained in the final version are adequate for me to sign this legislation today, I am concerned about the impact this law may have on an industry that is fueling critical technological advancements across our state for consumers and enterprises alike,” Polis said.
Colorado’s law is one of just a handful in the U.S. focused on AI. Illinois, Maryland and New York City all have laws addressing AI use in hiring.
