Colorado enacts revised AI law | United States | Global law firm - Norton Rose Fulbright

Colorado has enacted a revised version of its artificial intelligence law, now called the Revised CO AI Act, according to an analysis by law firm Norton Rose Fulbright. Notably, the act does not use the term 'artificial intelligence' but instead employs the phrase 'automated decision-making technology' (ADMT). ADMT is defined as technology that processes personal data to generate recommendations, rankings, or scores that are used to make decisions concerning an individual.

The revised act is an update to Colorado's earlier AI legislation. By replacing 'AI' with 'ADMT', the law aims to focus on decision-making systems that use personal data, rather than on the broader category of artificial intelligence. This definition is intended to cover technologies such as credit scoring, insurance risk assessment, and rental application evaluation, while potentially excluding generative AI models that do not produce scores or rankings.

The act is scheduled to take effect in 2026, giving businesses time to comply with the new requirements. Colorado is one of the first U.S. states to pass a law specifically regulating algorithmic decision-making. The revised terminology may influence how other states and the federal government approach AI regulation, though the act's precise scope remains to be tested in practice.