Navigating Colorado’s Landmark AI Discrimination Law

In a groundbreaking move, Colorado has enacted SB 205, a law aimed at preventing algorithmic discrimination by regulating the use of high-risk artificial intelligence (AI) systems. This legislation, effective from February 1, 2026, sets a precedent for other states and highlights the growing need for businesses to adopt robust AI governance frameworks. As companies prepare to comply with these new regulations, Canopy offers comprehensive solutions to help navigate these complex requirements.

Colorado SB 205 is designed to prevent AI systems from making discriminatory decisions in critical areas such as employment, education, financial services, healthcare, housing, and more.

The law targets AI systems that significantly impact consequential decisions.

• Both developers and deployers of high-risk AI systems must use reasonable care to avoid algorithmic discrimination.
• Companies must provide extensive information about their AI systems, including known risks and data used for training.
• Regular impact assessments are required to identify and mitigate risks of algorithmic discrimination.

Canopy is uniquely positioned to assist businesses in complying with Colorado SB 205 through its suite of AI governance and risk management solutions:

1. AI Risk Management Framework: Canopy provides a comprehensive framework to help businesses develop and implement AI risk management policies. This includes guidelines for regular reviews and updates to ensure ongoing compliance with SB 205.
2. Impact Assessments: Canopy offers tools and services to conduct thorough impact assessments of high-risk AI systems. These assessments help identify potential risks of algorithmic discrimination and provide actionable insights to mitigate them.
3. Transparency and Reporting: With Canopy, businesses can easily generate the required disclosures and public statements about their AI systems. This ensures transparency and helps build trust with consumers and regulators.
4. Training and Education: Canopy offers training programs to educate employees about the ethical use of AI and the importance of avoiding algorithmic discrimination. This helps create a culture of compliance and ethical AI use within the organization.
5. Continuous Monitoring: Canopy’s solutions include continuous monitoring of AI systems to detect and address any emerging risks. This proactive approach ensures that businesses remain compliant with SB 205 and other evolving regulations.

As Colorado leads the way with SB 205, businesses must take proactive steps to ensure their AI systems are compliant and free from discriminatory biases. Canopy’s comprehensive AI governance solutions provide the tools and support needed to navigate these new regulations effectively. By partnering with Canopy, businesses can not only comply with the law but also foster a fair and ethical AI environment.

For more information on how Canopy can help your business comply with Colorado SB 205, visit our website or contact our team of experts today.