The Rise of AI Regulation: What’s Happening in Colorado, Utah, and California?
As artificial intelligence (AI) becomes more integrated into our lives, from smart assistants to recruitment tools, new laws are emerging to ensure these technologies are used responsibly. In 2024, three states—California, Colorado, and Utah—took major steps to regulate AI.
California’s AI Transparency Acts
California is making waves with two key pieces of legislation: Senate Bill 942 and Assembly Bill 2013.
Senate Bill 942: California AI Transparency Act
This law mandates AI systems in California with over one million monthly users to disclose when content is generated or altered by AI. It also requires AI detection tools and limits public use to compliant systems. Violators face penalties of up to $5,000 per day.
Assembly Bill 2013: Generative AI Training Data Transparency Act
This bill requires GenAI developers to publish summaries of the datasets used to train their systems. These summaries must include data sources, whether the data contains personal info under the CCPA, and IP protections.
Colorado: The First Comprehensive U.S. AI Legislation
On May 17, 2024, Colorado passed the Colorado AI Act, the first comprehensive AI law in the U.S., effective in 2026. It targets high-risk AI systems that influence decisions in sectors like education, healthcare, and employment. The law focuses on preventing bias and discrimination in sensitive areas like hiring or loan approvals.
Utah: The AI Policy Act and Consumer Transparency
Utah’s AI Policy Act, effective May 2024, ensures proactive disclosure of GenAI use by regulated professions (e.g., lawyers, healthcare providers), while non-regulated professions must disclose only if asked. Failure to comply can result in fines up to $2,500 per violation.
Why Does This Matter?
These laws push for transparency in AI training and decision-making. As AI evolves, these regulations could set the standard for other states and countries to follow in regulating this rapidly growing technology.