39 similarly significant effect on the provision or denial to any consumer, or the cost or terms, of” education or employment opportunities, financial or lending services, essential government services, healthcare services, housing, insurance, or legal services). • It requires that developers and entities that deploy “high-risk” AI systems use reasonable care to prevent algorithmic discrimination. There is a rebuttable presumption that reasonable care was used if they meet certain requirements, such as having a risk management policy and program, and providing notice to consumers of the use of AI in making a consequential decision and notice of consumer rights (such as the right to correct inaccurate personal data and the right to appeal a decision). • Colorado’s Attorney General has exclusive authority to enforce the Colorado AI Act and issue penalties of up to $20,000 per violation. There is no private right of action. California On September 19, 2024, California enacted the California AI Transparency Act, which goes into effect January 1, 2026.7 • It will require providers of Gen AI systems to make available an AI detection tool, at no cost to users, that will allow users to check whether images, video, or audio content has been created or altered using a Gen AI system. Providers must include latent disclosure in AI-generated content (i.e., in metadata) that can be detectable using the AI detection tool. Also, users must be provided the option of having a manifest disclosure, clearly conveying that content is AI generated. Providers that license their Gen AI systems to third parties must have agreements with the licensees requiring that they maintain these disclosure requirements. If covered providers know that third-party licensees are not capable of including such disclosures, they will be required to revoke their licenses within 96 hours. • It applies to any “covered provider,” defined to mean “a person that creates, codes, or otherwise produces a generative artificial intelligence system that has over 1,000,000 monthly visitors or users and is publicly accessible” within California. 7 California AI Transparency Act, Sen. 942, Ch. 291 (adding Ch. 25, Sec. 22757 to Div. 8 of Bus. & Prof. Code) (2024), https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_ id=202320240SB942#:~:text=This%20bill%2C%20the%20California%20AI,detection%20 tool%20is%20publicly%20accessible
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