Gov. Jared Polis signs new law rewriting Colorado AI regulations targeting discrimination

Colorado Governor Jared Polis signed Senate Bill 189 into law on Thursday, replacing stricter AI regulations that were set to take effect next month. The new law requires companies and agencies to notify job seekers, college applicants, and loan applicants if AI is used to evaluate their applications. Starting January 1, 2027, individuals denied opportunities can also request details on the AI decision-making process and demand a human review. SB-189 weakens earlier rules that demanded preemptive risk assessments to prevent AI-driven discrimination. The revised law emerged after a two-year stalemate involving tech companies, business groups, and labor organizations, culminating in a task force convened by Polis. The bill passed with bipartisan support, though lawmakers acknowledged it is a compromise rather than an ideal solution. The law renders moot an April lawsuit filed by Elon Musk’s company xAI, which had challenged the original AI regulations. The U.S. Department of Justice had also joined the legal challenge against the stricter rules. SB-189’s passage marks Colorado as one of the first states to regulate AI’s role in consequential decision-making, though lawmakers emphasize further discussions are needed. Senate Majority Leader Robert Rodriguez, who sponsored the bill, stated the law balances consumer protections with innovation. Rep. Jennifer Bacon, a Denver Democrat and co-sponsor, called it a starting point for broader AI governance. The legislature also passed additional AI-related bills this year, signaling ongoing efforts to address the technology’s societal impact. The new regulations require transparency but stop short of mandating full risk assessments, reflecting the task force’s negotiations. Applicants can now seek explanations and reconsideration, though enforcement details remain unclear. The law’s passage concludes a prolonged debate over how to regulate AI without stifling technological progress.