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New Colorado invoice would revamp landmark AI legislation to exempt small companies


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Dive Transient:

  • Colorado lawmakers on Monday launched Senate Invoice 318, a invoice that may revamp the state’s landmark synthetic intelligence legislation set to enter impact Feb. 1, 2026. Beneath the present legislation, Colorado deployers of “high-risk synthetic intelligence techniques,” together with employers and others concerned in employment selections, should take “affordable care” to forestall discrimination.
  • SB 318 would create exemptions for small companies and institute an extended ramp for implementation. Initially set to use to firms with greater than 50 employees, the amended invoice would apply to firms with greater than 100 staff worldwide by April 1, 2029, after a collection of phase-ins. 
  • Gov. Jared Polis mentioned in a signing assertion of Senate Invoice 205, the unique AI legislation, that it might “tamper innovation and deter competitors in an open market.” Lawmakers have till Could 7, when the legislature adjourns, to approve the invoice.

Dive Perception:

The proposed invoice was sponsored by Democratic Sen. Robert Rodriguez and Democratic Rep. Brianna Titone and would cut back some administrative burden on small companies, take away the requirement for “affordable care” to be made in selections and alter the grounds on which shoppers can attraction opposed selections, amongst different adjustments.

Particularly, the invoice “requir[es] a deployer to incorporate in an influence evaluation whether or not the system poses any recognized or moderately foreseeable dangers of limiting accessibility for sure people, an unfair or misleading commerce follow, a violation of state or federal labor legal guidelines, or a violation of the ‘Colorado Privateness Act.’”

In signing Senate Invoice 205 into legislation final yr, Polis acknowledged it was “among the many first within the nation to aim to control the burgeoning synthetic intelligence business on such a scale.”

He really helpful a federal strategy to AI regulation however, in its absence, inspired lawmakers “to considerably enhance” the state legislation earlier than it might take impact. 

“…Whereas the guardrails, lengthy timeline for implementation and limitations contained within the remaining model are enough for me to signal this laws right this moment, I’m involved in regards to the influence this legislation could have on an business that’s fueling important technological developments throughout our state for shoppers and enterprises alike,” Polis mentioned.

Colorado’s legislation is certainly one of only a handful within the U.S. centered on AI. Illinois, Maryland and New York Metropolis all have legal guidelines addressing AI use in hiring.

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