Source: White & Case

White & Case – This legal insight examines how several US states have begun to focus on automated decision-making systems (ADS) as a priority in emerging AI regulations. While federal AI legislation is still under development, states such as California, Colorado, and Illinois are taking proactive steps to address the risks posed by AI systems that affect employment, lending, housing, and access to public services.

The article discusses how these laws often aim to reduce algorithmic bias, enhance transparency, and protect consumers from automated decisions made without human oversight. It also notes that many of these laws incorporate requirements for impact assessments, public disclosures, and user notification when an ADS is used.

White & Case highlights the legal challenges businesses face in complying with a patchwork of state laws while ensuring that their AI tools remain competitive and compliant. Companies are advised to adopt robust governance frameworks, including documentation and auditing protocols, to prepare for future enforcement. The trend signals a shift toward more localized AI regulation in the US, with the potential to influence national and international standards.