Colorado regulators have introduced a draft rulebook detailing how employers must handle artificial intelligence in hiring, promotions, and pay decisions. These proposed rules, published by the state Attorney General, expand on the upcoming automated decision-making technology law taking effect in 2027. Employers using AI tools to screen resumes or score candidates must prepare for new transparency and record-keeping requirements.
A central point of the current debate is the definition of material influence. Regulators are weighing two different standards to determine which AI tools fall under the law. One approach covers nearly any AI output that nudges a hiring decision, while the second allows employers more room to argue that a human made the final call. This distinction will determine whether common recruiting software remains subject to these strict compliance mandates.
The proposed rules mandate detailed disclosures whenever a candidate receives an adverse outcome based on AI usage. Employers would need to explain the role the AI played and provide the principal reasons for the specific decision. Furthermore, companies must establish a formal process for candidates to request a manual, independent human review of their file. This review must be conducted by someone separate from the initial decision-maker and completed within a strict 45-day window, which could cause significant operational shifts in recruitment timelines.
Additional requirements apply to companies using AI-driven chatbots for candidate interaction, particularly regarding age verification and safety protocols. Employers are also urged to inventory their current AI tools and verify whether their vendors can provide the specific data required to justify automated decisions. Because the comment period is open until early October, organizations are encouraged to review these proposals and submit feedback regarding the practical impact on their hiring operations.