SHRM Calls for Clarity in Colorado's AI Regulations
On October 26, SHRM submitted a comment to the Colorado Department of Law on its proposed regulations implementing the state's Automated Decision-Making Technology in Consequential Decisions Act, calling for clearer, employment-specific requirements that support responsible AI adoption while protecting workers.
SHRM research underscores the importance of getting these regulations right. According to The State of AI in HR 2026, 46% of organizations expect to use AI in HR this year, although adoption varies considerably by organization size. Among HR professionals using AI, 87% reported improvements in efficiency, 75% in work quality, and 70% in creativity.
These findings highlight AI's potential to support HR professionals without replacing human judgment. SHRM's comment emphasized that the regulations should distinguish between AI that materially influences employment decisions and technologies that augment human decision-making, without creating unnecessary uncertainty or liability.
SHRM also urged Colorado to recognize the distinct nature of employment decisions, where multiple qualified individuals may compete for a single opportunity and meaningful human review does not necessarily require reversing an outcome. Additional recommendations include clearer notice requirements, reasonable reliance protections for employers using third-party AI systems, and employment-specific compliance guidance.
Employer education is another critical consideration. SHRM’s AI research found that 57% of HR professionals working in states with employment-related AI laws or regulations were unaware of those requirements. SHRM therefore encouraged Colorado to provide comprehensive implementation resources and an extended compliance window to help employers understand and meet their obligations.
SHRM supports the state's goals of transparency, accountability, and worker protections while emphasizing that effective AI governance must reflect the practical realities of employment decisions.
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