Colorado Governor Jared Polis has signed into law SB24-205, which aims to protect consumers from algorithmic discrimination resulting from artificial intelligence. The law imposes requirements on both developers and deployers of these AI systems in Colorado to demonstrate reasonable care to protect consumers from known or foreseeable risks of algorithmic discrimination through transparency, governance, and mitigation measures. The law comes into effect on February 1, 2026. The AI regulatory ecosystem is evolving, and compliance is essential, particularly when multiple frameworks and jurisdictional differences have to be navigated.

The National Institute of Standards and Technology (NIST) has released a draft AI RMF Generative AI Profile to help organizations identify and respond to risks posed by generative AI. The profile provides a roadmap for managing GAI-related challenges across various stages of the AI lifecycle, and offers proactive measures to mitigate the risks of GAI. Although voluntary, implementing an AI risk management framework can increase trust and increase ROI by ensuring your AI systems perform as expected.

The development of artificial intelligence (AI) technologies relies heavily on data. However, the use of copyrighted materials in training and testing AI systems may raise copyright infringement concerns. The EU AI Act introduces no exceptions to current copyright law but imposes obligations on providers of general-purpose AI models to comply with copyright protection. These obligations include establishing copyright policies and providing detailed summaries of training data used in the development of the AI model. The AI Office is tasked with developing guidelines and monitoring compliance with copyright obligations. EU copyright law provides several exceptions to copyright protection, including exemptions for text and data mining activities. Still, non-compliant operators may face harsh penalties under the Act and copyright claims under EU copyright law.

Generative Artificial Intelligence (GenAI) has raised numerous legal questions, particularly in the realm of copyright law as GenAI systems become increasingly sophisticated in replicating and generating content. The use of copyrighted material for training AI is a central concern, with lawsuits proliferating as a consequence. There are laws in several countries that could potentially permit the use of copyrighted materials to train AI. The ongoing legal battles confront ethical questions, such as whether training a model on copyrighted material requires a license, whether generative AI output infringes on the copyright of the materials on which the model was trained, and whether liability for copyright infringement stems from generative AI. The lawsuits and legal questions underscore the complex and evolving nature of copyright law in the era of AI technology. Organizations need to stay on top of developments to remain compliant with the fast-moving legal landscape.

Colorado has passed a law to protect consumers in their interactions with AI systems, SB24-205, which mandates regulation of high-risk AI systems and prevents algorithmic discrimination. Developers of high-risk systems must take reasonable precautions to prevent algorithmic discrimination, such as disclosing information and conducting impact assessments. High-risk system deployers must implement risk management protocols, conduct impact assessments, and provide consumers opportunities to correct incorrect data. The law applies to any person who does business in Colorado, and enforcement lies solely in the power of the Attorney General. The law provides defenses for developers or deployers if they comply with a nationally or internationally recognized AI risk management framework. There are no specified penalties for violations, and compliance can be maximized with Holistic AI's Governance Platform.