Colorado AI bill set for overhaul as the clock ticks
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Colorado's first-in-the-nation law governing the use of artificial intelligence is facing an overhaul after vocal opposition from technology companies.
Why it matters: Other states are closely watching the lawmaking as a model for regulating AI and ensuring privacy in the bot era.
Catch up quick: Colorado's current law — which takes effect next February — requires consumer disclosure when AI is being used and prevents discrimination in decision-making.
- It applies to predictive artificial intelligence systems that make decisions, not generative ones such as ChatGPT.
Yes, but: The governor and tech industry argued the existing law went too far, saying it would stifle innovation, job growth and startup companies with all its demands on AI companies.
The latest: A bill introduced Monday — just days before lawmakers adjourn the session — rewrites some rules to assuage the industry's fears.
- The legislation more clearly outlines the rules for consumer disclosure, adjusts the definition of discrimination to fit existing law and curtails some of the responsibilities of the AI companies and those who deploy the software.
- The new rules would exempt smaller companies under 500 employees, rather than the current benchmark of 50.
The other side: The changes didn't satisfy all the bill's critics and made the rules tougher in some areas, Chris Erickson, co-founder and managing partner at Range Ventures, a venture capital firm, tells us.
- The change "we were told is going to happen hasn't happened yet," he said.
Bryan Leach, CEO and founder of Ibotta, a digital coupon company, echoed those concerns.
- "The bill substantially heightens the costs and administrative burdens on small businesses," he said in a statement to Axios Denver. "If passed, this bill will only exacerbate the damage to our reputation as a business-friendly state and our ability to continue to create jobs."
The bottom line: Rodriguez dismissed his loudest tech objectors. "They just want this policy gone, because this is an industry that's never been regulated, and we're the person who wants to do it."