The First AI Law That Actually Applies to You
For months, AI regulation has felt like a future problem, something only developers and big tech needed to worry about.
Not anymore.
In the latest LinkedIn Live, I broke down the first state-level law that directly impacts AI users (a.k.a. deployers): Colorado’s SB-205. Even if you’re not in Colorado, this law is the blueprint for what is to come. States like California, Virginia, Maryland, and Utah are watching closely and planning to follow suit.
This isn’t just about tech companies. This law and the ones expected to follow will affect coaches, consultants, advisors, and other experts with corporate clients using AI in their workflows.
If that’s you, here’s what you need to know:
Colorado’s law applies to “high-risk” AI use. That means using AI tools to make or assist in decisions related to employment, education, lending, healthcare, housing, or legal services. If you’re using AI to screen applicants, summarize coaching notes, analyze financials, recommend coverage levels or similar professional services—you’re in scope.
For the first time, in addition to your contractual obligations to your clients, you will also have statutory obligations.
What the law requires:
A clear, documented AI usage policy
Regular impact assessments on how your tools affect outcomes
Transparent disclosures to clients
The ability to explain how and why a decision was made, and
(last but not least) Human oversight in consequential decision-making
The bottom line?
You need to know which tools you’re using, how they impact client outcomes, and whether you’re equipped to manage risk.
The ethical use of AI starts with human judgment. Regulation is simply catching up. If you don’t know how a decision was made, you’re not meeting your legal or ethical obligations.
P.S. You can catch the full LinkedIn Live replay here.
And if this was helpful, forward to a colleague or share on LinkedIn. Awareness is step one.
Using (or thinking about using) AI in your business? Make sure your AI tools aren’t breaking your contracts—or your clients’ trust.
Book an AI Clarity Session with Erin to get expert legal and ethical guidance tailored to how you use AI. In just one hour, you’ll walk away with a clear, compliant, and confidence-boosting plan.