Effective in 2026, a new Colorado law aims to regulate creators and users of certain “high-risk” artificial intelligence (AI) systems, including employers. One of the goals is to prevent discrimination [S.B. 205, L. 2024].
Under the law, a high-risk AI system is any AI system that, when used, makes or is a substantial factor in making a consequential decision. A consequential decision is one that has a legal or significant effect on the provision or denial of certain services. This includes employment decisions.
This has the potential impact payroll and HR departments. Also, more states could pass similar laws in the future. Therefore, it is important to learn more about AI.
PayrollOrg Report on AI
PayrollOrg recently released a report, Artificial Intelligence in Payroll Operations. The report provides an overview of how AI is and may be used in payroll management, including important concerns and questions.
Want even more information about AI? Check out PayrollOrg’s Hot Topic on AI.
Interested in more state and local payroll coverage? PayrollOrg’s PayState Update eNewsletter is perfect for you.
Lia Coniglio, Esq., is Managing Editor of PayState Update and Senior Manager of State Payroll Information Resources for PayrollOrg.
