In 2024, two states made strides in regulating the use of artificial intelligence (AI) systems. Colorado was the first to enact legislation that requires companies to report, be accountable, and maintain transparency when developing and using “high-risk” AI systems used to make high-stakes decisions in areas such as housing and hiring. California, which was the first state to enact comprehensive data privacy legislation, used the 2024 legislative session to pass more than a dozen bills centered around various AI risks and usage transparency.
Finnegan partner and leader of the firm’s privacy practice Lynn Parker Dupree spoke with Law360 and said, "AI is always a huge topic because it's a data-driven technology.”
"Although it's manifesting differently across these laws, what we're seeing is a consistent theme to require companies to explain and have documentation so individual users and regulators can understand how their models are being trained and what the actual purposes are," she said.
