Organizations representing the technology industry are urging Colorado Gov. Jared Polis to veto a bill they say could negatively impact small businesses developing cutting-edge artificial intelligence technology.
Senate Bill 205, if signed into law, would establish regulations governing the development and use of artificial intelligence in Colorado, with a focus on preventing algorithmic discrimination. This term refers to circumstances where AI systems may lead to discriminatory outcomes based on factors such as age, color, disability, ethnicity, and other protected classes.
The bill places obligations on developers to exercise reasonable care in preventing discrimination when using high-risk AI systems. These systems, defined as those involved in substantial decision-making, require developers to have risk management policies, complete impact assessments, and notify consumers if AI is used to make consequential decisions.
Despite these provisions, various organizations are calling for a veto of the bill. The Chamber of Progress, Consumer Technology Association, and the US Chamber of Commerce argue that SB 205 could stifle innovation and put small businesses at a disadvantage compared to larger corporations.
Small business owners who opposed the bill during the legislative process highlighted concerns about the potential negative impact on innovation and requested more engagement with lawmakers to find a balanced solution.
While some tech companies support the bill, others underline the need for a detailed analysis of regulatory gaps before enacting such legislation. Beth Rudden, CEO of Bast AI, views the bill as a necessary step to maintain the integrity of AI systems and ensure accountability for unethical actions.
Gov. Polis has until June 7 to make a decision on the bill. If no action is taken, it will automatically become law, impacting the development and use of artificial intelligence technology in Colorado.
