A year ago, Colorado became the first state to pass a law governing artificial intelligence (AI) in the workplace. Now, the state is making a significant change to that law, providing a major relief to employers. On May 31, 2022, Colorado Governor Jared Polis signed an amendment to the AI law, which had been set to take effect on January 1, 2023. The new amendment has already been put into place, reducing the obligations on employers in several key areas.
Under the original law, employers were required to provide notice to employees before using AI for monitoring or decision-making purposes. They also had to obtain employees’ consent before using AI to monitor or evaluate their performance. However, the amended law now allows employers to use AI for these purposes without providing notice or obtaining consent, as long as the AI is not used in a way that is “substantially adverse” to employees. This change has been welcomed by employers, who had been concerned about the potential administrative burdens and liability associated with the original law.
The amendment also clarifies that employers are not required to disclose the specific methods or algorithms used in AI decision-making processes. This means that employers can continue to use AI in their hiring and firing processes without having to reveal the underlying logic behind their decisions. While some critics may argue that this lack of transparency undermines accountability, the amendment has been seen as a pragmatic move to reduce the regulatory burden on employers.