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Bill > SB318


CO SB318

Artificial Intelligence Consumer Protections


summary

Introduced
04/28/2025
In Committee
04/28/2025
Crossed Over
Passed
Dead
05/05/2025

Introduced Session

Potential new amendment
2025 Regular Session

Bill Summary

In 2024, the general assembly enacted Senate Bill 24-205, which created consumer protections in interactions with artificial intelligence systems (provisions). The bill amends these provisions by: ! Redefining "algorithmic discrimination" to mean the use of an artificial intelligence system that results in a violation of any applicable local, state, or federal anti-discrimination law; ! Creating an exception to the definition of "developer" of an artificial intelligence system (developer) if a person offers the artificial intelligence system with open model weights or if the person meets specified conditions regarding the artificial intelligence system; ! Exempting specified technologies that do not make, or are not a substantial factor in making, a consequential decision from the definition of "high-risk artificial intelligence system"; ! Eliminating the duty of a developer or deployer of a high-risk artificial intelligence system (deployer) to use reasonable care to protect consumers from any known or reasonably foreseeable risks of algorithmic discrimination; ! Eliminating the requirement that a developer or deployer notify the attorney general of any known or reasonably foreseeable risks of algorithmic discrimination arising from the intended uses of the high-risk artificial intelligence system; ! Exempting a developer from specified disclosure requirements if the developer has received less than $10,000,000 from third-party investors, has annual revenues of less than $5,000,000, and has been actively operating and generating revenue for less than 5 years and sells, distributes, or otherwise makes available to deployers high-risk artificial intelligence systems that do not exceed specified limits on the number of consequential decisions made by the systems; ! Requiring 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"; ! Requiring a deployer to provide additional information to a consumer if the high-risk artificial intelligence system makes, or is a substantial factor in making, a consequential decision concerning the consumer; ! Amending provisions regarding a consumer's right to appeal an adverse consequential decision concerning the consumer so that the provisions apply only to an adverse consequential decision that is not a time-limited decision or a competitive decision; ! Clarifying the meaning of "adverse" when referring to a consequential decision; ! Broadening an exemption for a deployer from specified disclosure requirements based on the deployer's number of full-time equivalent employees; ! Exempting a deployer from specified requirements if the deployer uses the high-risk artificial intelligence system solely relating to the recruitment, sourcing, or hiring of external candidates for employment, meets specified disclosure requirements, and does not employ more than specified limits on the number of full-time equivalent employees; ! Applying specified requirements only to high-risk artificial intelligence systems that make, or are the principal basis in making, consequential decisions; ! Requiring a developer or deployer that withholds information otherwise subject to disclosure to provide specified information regarding the disclosure; and ! Requiring that the attorney general's authority to investigate and enforce violations of the provisions begins on January 1, 2027.

AI Summary

This bill modifies Colorado's existing Artificial Intelligence Consumer Protections law by redefining key terms, adjusting compliance requirements, and providing more nuanced exemptions for developers and deployers of artificial intelligence (AI) systems. The bill redefines "algorithmic discrimination" to mean the use of an AI system that violates any applicable local, state, or federal anti-discrimination law, and creates new exceptions for developers who offer systems with open model weights or meet specific conditions. The legislation introduces new concepts like "competitive decision" and "time-limited decision" and clarifies what constitutes an "adverse" consequential decision. The bill also reduces some regulatory burdens for smaller companies by exempting developers and deployers with fewer employees or lower revenues from certain disclosure requirements. Notably, the bill delays the attorney general's enforcement authority until January 1, 2027, giving businesses more time to prepare for compliance. The changes aim to provide more flexibility for AI system developers while maintaining consumer protections against potential discriminatory uses of AI technology, with a particular focus on ensuring transparency and fairness in consequential decisions that affect consumers' opportunities in areas like employment, housing, financial services, and other critical domains.

Committee Categories

Business and Industry

Sponsors (2)

Last Action

Senate Committee on Business, Labor, & Technology Postpone Indefinitely (on 05/05/2025)

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