On May 8th, 2024, Colorado became the first state in the US to enact a law specifically targeting algorithmic discrimination in artificial intelligence (AI). This landmark legislation, Senate Bill 205 (SB 205), sets a national precedent for regulating AI and aims to mitigate its potential for bias.
The core principle of SB 205 centers on the concept of "high-risk" AI systems. These are AI applications that could have a significant impact on a person's life, such as those used in hiring decisions, loan approvals, or criminal justice risk assessments. The law places a legal responsibility on both the developers and deployers of these high-risk systems to take proactive steps to prevent algorithmic discrimination.
This means developers must implement safeguards during the creation of the AI to identify and eliminate potential biases in the data or algorithms used. Additionally, they are required to provide deployers with clear documentation on the system's limitations and potential for bias.
Deployers, on the other hand, have a duty to assess the risk of algorithmic discrimination before deploying the AI and continuously monitor its use. SB 205 mandates the creation of risk management plans and regular reviews to ensure the AI is not unfairly disadvantaging certain groups.
The Colorado bill establishes a framework for "reasonable care" to be taken against algorithmic discrimination. This means both developers and deployers can demonstrate they took appropriate measures to mitigate bias, even if unintended bias still occurs.
While the specifics of enforcement are still being ironed out, SB 205 represents a significant step forward in ensuring fair and ethical use of AI. Colorado's groundbreaking legislation is likely to serve as a model for other states looking to address the growing concerns over algorithmic bias and discrimination.