After a protracted legal battle over Colorado‘s first legislation on the use of AI in decision making, the dust has finally cleared, and businesses have some guidance on what to expect. Governor Polis recently signed SB26-189 into law, which creates sweeping new requirements for businesses that develop or deploy automated decision-making technology (ADMT).
SB26-189 is best understood as something of a reset to the state’s original, but never implemented, 2024 AI law, SB 24-205. That law would have imposed exceedingly broad obligations on companies that develop or utilize AI systems, with the goal of preventing algorithmic discrimination.
But after sustained local and national political and legal pressure, Colorado replaced that framework with a narrower law focused on documentation, notices, disclosures, recordkeeping, correction rights, and meaningful human review for certain automated decision-making uses. That narrower framework is SB26-189.
The law regulates two categories of entities: “developers,” those who create ADMT systems, and “deployers,” those who use ADMT that materially influences “consequential” decisions, including employers.
A covered ADMT is automated technology that processes personal data and generates an output, such as a recommendation, ranking, score, classification, or prediction, used in the employment context to make or assist in a decision about an applicant or employee. The technology...
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