Colorado Senate Bill SB318

Colorado 2025 Regular Session

• Introduced: 4/28/25
• Refer: 4/28/25
• Failed: 5/5/25

Caption

Artificial Intelligence Consumer Protections

Impact

If enacted, SB318 will significantly reshape how companies develop and deploy AI technologies by introducing clearer regulations and due diligence requirements. The legislative intent behind these regulatory changes is to both foster innovation in AI while ensuring consumer trust and protection in technology interactions. However, some provisions eliminate earlier safeguards, such as the requirement for developers to use reasonable care to protect against algorithmic discrimination, which may raise concerns regarding the balance between innovation and consumer safety.

Summary

SB318 is a legislative measure that addresses consumer protections in interactions with artificial intelligence (AI) systems. It seeks to amend existing provisions created by SB24-205 by redefining key terms and altering the framework of obligations for developers and deployers of high-risk AI systems. Notably, the bill aims to enhance consumer safety by minimizing risks associated with algorithmic discrimination, which may arise from AI systems that impact various consumer-related decisions, such as employment, education, and financial services. The bill also sets specific requirements for impact assessments of such systems, mandating that deployers evaluate foreseeable risks, including potential violations of consumer rights and accessibilities.

Contention

The discussions surrounding SB318 have revealed notable points of contention. Critics argue that exemptions granted to small developers—those with under $10 million from investors or earnings below $5 million—could allow harmful algorithms to proliferate without adequate oversight. Moreover, the bill's provisions that remove the duty to report known risks to the attorney general have raised eyebrows among consumer advocates, who fear this may lead to a lack of accountability. The complexities involved in defining consequential decisions and the principles guiding consumer interactions with AI systems underscore the ongoing debate about regulation and innovation in the rapidly evolving technology landscape.