Colorado Governor Jared Polis signed the Colorado Artificial Intelligence (AI) Act into law on May 17, 2024.

This makes Colorado the first U.S. state to regulate the use and development of AI systems.

The law aims to prevent algorithmic discrimination in high-risk AI systems that impact individuals' legal or economic interests.

Developers and deployers of such systems must provide detailed documentation on training data, limitations, and intended uses.

They are also required to implement risk management policies and conduct annual impact assessments.

The Colorado Attorney General has exclusive enforcement authority, with penalties of up to $20,000 per violation.

Companies operating in Colorado must assess their AI systems for compliance with disclosure requirements before the law takes effect on February 1, 2026.

This law sets a precedent for AI regulation in the U.S. and may shape future federal legislation.