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Governor Jared Poils signed a bill that creates regulations on the use of Artificial Intelligence in making employment decisions.

About The Bill

Colorado legislators passed bill SB24-205, otherwise titled Consumer Protections for Artificial Intelligence. It creates a requirement for high-risk Artificial Intelligence (AI) systems to use “reasonable care” to avoid discrimination. To achieve this, developers must:

• Make a statement that discloses details about the high-risk system.
• Produce documentation that empowers the person who will deploy the system to complete an impact assessment.
• Write a publicly available statement which summarizes the types of high-risk systems that have been developed or substantially modified. This must include details about how the developer manages any known or reasonably foreseeable risks of algorithmic discrimination.
• Disclose to the Attorney General and anyone who will deploy the system any known or reasonably foreseeable risk of algorithmic discrimination within 90 days after the discovery or receipt of a credible report from the deployer that the system has caused or is reasonably likely to have caused.

SB24-205 also creates requirements for the person who deploys the system to:

• Implement a risk management policy and program.
• Complete an impact assessment of the system.
• Annually review the deployment of each system to help ensure it is not causing algorithmic discrimination.
• Notify consumers of items in the system that make a consequential decision concerning consumers.
• Give consumers an option to correct any personal data and to appeal any adverse decisions that might be made due to the use of a high-risk AI system.
• The appeal should be reviewed by a human if possible.
• Disclose any discoveries of algorithmic discrimination to the Attorney General within 90 days.

Future Improvements

When signing the bill, Governor Poils expressed concern about the impact the law could have on industries that are fueling important technological advancements. He noted that bills like this could deter competition in the open market. Further, the Governor called upon the bill’s sponsors to “significantly improve” their approach and “fine tune the provisions to ensure the final product does not hamper development and expansion of new technologies” before the bill goes into effect.

What Employers Should Know

AI is becoming a more commonly used tool to support the hiring process. It is intended to help employers quickly identify qualified candidates. Organizations in Colorado should be aware of upcoming regulations regarding the use of high-risk AI programs.

Employers everywhere should know that legislators throughout the country might be taking a closer look at the use of AI for employment purposes. Because this technology is still being developed, some businesses may opt for a combination of human and AI review.

Running Background Checks

Whether your organization uses AI during the hiring process, background checks are still an essential component. If your business is planning to bring on employees, volunteers or contractors, please contact us. Our highly experienced team can help you customize screening packages that suit your specific needs, comply with relevant laws and meet industry regulations.

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