Colorado has become the first state in the US to enact comprehensive legislation regulating AI use in critical areas like employment, healthcare, and housing. From February 2026, affected businesses must provide information about their AI use and take “reasonable care” to protect citizens from algorithmic discrimination. “Laws that seek to prevent discrimination generally focus on prohibiting intentional discriminatory conduct,” said Governor Jared Polis, who signed Senate Bill 24-205 (SB205) on May 17, 2024. “Notably, this bill deviates from that practice by regulating the results of AI system use, regardless of intent.” Addressing Algorithmic Discrimination SB205
The Colorado Division of Insurance (CDI) has adopted a new regulation to prevent life insurers that rely on models and ECDIS from engaging in race-based discrimination. Life insurance regulators have been grappling for several years with the potential risks and benefits of insurers using AI and the significant external data sources utilized by AI in underwriting. The technology used raises regulatory questions, including concerns that its use could cause unfair discrimination. Several insurance regulators have also expressed concern that external data sources used by AI and other algorithms could contribute
