Attempts to regulate AI’s hidden hand in Americans’ lives flounder in US statehouses

abcnews.go.com:

State lawmakers first attempts at regulating discrimination from artificial intelligence have floundered in states across the country

DENVER — The first attempts to regulate artificial intelligence programs that play a hidden role in hiring, housing and medical decisions for millions of Americans are facing pressure from all sides and floundering in statehouses nationwide.

Only one of seven bills aimed at preventing AI’s penchant to discriminate when making consequential decisions — including who gets hired, money for a home or medical care — has passed. Colorado Gov. Jared Polis hesitantly signed the bill on Friday.

Colorado’s bill and those that faltered in Washington, Connecticut and elsewhere faced battles on many fronts, including between civil rights groups and the tech industry, and lawmakers wary of wading into a technology few yet understand and governors worried about being the odd-state-out and spooking AI startups.

Polis signed Colorado’s bill “with reservations,” saying in an statement he was wary of regulations dousing AI innovation. The bill has a two-year runway and can be altered before it becomes law.

“I encourage (lawmakers) to significantly improve on this before it takes effect,” Polis wrote.

Colorado’s proposal, along with six sister bills, are complex, but will broadly require companies to assess the risk of discrimination from their AI and inform customers when AI was used to help make a consequential decision for them.

The bills are separate from more than 400 AI-related bills that have been debated this year. Most are aimed at slices of AI, such as the use of deepfakes in elections or to make pornography.

The seven bills are more ambitious, applying across major industries and targeting