6thWave: AI News Hub

The state of Colorado has recently enacted the Artificial Intelligence Act, a groundbreaking law that governs the development and use of artificial intelligence. While the law won’t take effect until 2026, it’s already facing pressure to undergo changes to address concerns about its unintended impact on consumers and businesses. The Act primarily applies to high-risk AI systems that make consequential decisions affecting Colorado residents, such as education, employment, financial services, and healthcare. Developers and deployers of these systems have a duty to avoid algorithmic discrimination and must take measures to protect consumers. The law also gives consumers certain rights, including the right to know when AI systems are used to make decisions about them and the right to appeal those decisions. Despite its promising start, the Act’s framework is expected to evolve before implementation, with revisions likely to refine the definitions of high-risk AI systems and shift the focus of regulation from deployers to developers. As the law takes shape, businesses should start preparing for material AI regulation by developing risk management frameworks, preparing records and documentation, and establishing procedures for assessing and mitigating AI-related risks.

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