Colorado’s AI Act Rewrite Moves Forward: A New Draft For Employers - Forbes

Colorado's AI Act rewrite has moved forward with a new draft specifically addressing employers. The legislation targets automated decision-making technology that materially influences consequential decisions in employment, housing, credit, insurance, healthcare, or access to government services. The draft is part of a broader effort to regulate AI in the state.

The new draft requires employers to notify individuals when AI is used in decisions that affect them and to provide an opportunity to contest the decision. The phrase 'materially influences' is intended to capture decisions where AI plays a significant role, though its exact scope may be clarified through rulemaking. The bill is currently advancing through the legislative process.

The rewrite follows previous attempts to regulate AI in Colorado, including a broader bill from the prior session. Stakeholders have expressed varying opinions: some argue the draft does not go far enough in defining 'materially influences', while others worry about compliance burdens on businesses. The bill's sponsors have indicated that further amendments are possible as it moves through committee hearings.