Major Legal Development for AI in Colorado

Harmeet Dhillon, the Assistant Attorney General for Civil Rights, recently celebrated a significant achievement regarding artificial intelligence (AI) in an interview with Breitbart News. This followed the Justice Department’s involvement in a lawsuit against a Colorado law aimed at preventing “algorithmic discrimination.”

During a conversation with political editor Bradley Jay, Dhillon elaborated on how the Department of Justice (DOJ) successfully convinced Colorado not to enforce the law, known as SB24-205. This law mandates that AI developers follow certain disclosure and reporting guidelines, particularly in sectors like mortgage lending, job recruitment, and college admissions.

Interestingly, the bill contains specific exemptions for algorithms that promote “diversity” and aim to rectify historical discrimination—a point that the AI company xAI contested in a lawsuit, arguing that the law is unconstitutional.

This case marks the first time the DOJ has intervened in litigation regarding state AI regulations. On Friday, Dhillon’s team joined xAI in asserting that “state-enforced discrimination in AI is fraught with risks.”

Dhillon underscored the role of the Civil Rights Division in safeguarding Americans and businesses from discrimination based on unacceptable criteria, such as race and gender. She pointed out that the law would require local governments and businesses to adjust their algorithms to reflect demographic considerations, which she argued is both unnecessary and illegal under the Equal Protection Clause of the Fourteenth Amendment.

“This isn’t mandated by law; in fact, it’s forbidden by federal law,” she noted, adding that the push for corrective measures leads to discrimination under the guise of addressing past injustices—something she finds unreasonable and harmful to innovation.

Beyond constitutional concerns, Dhillon also highlighted First Amendment issues associated with the bill, asserting that it pressures states into making certain statements to achieve diversity, equity, and inclusion (DEI) goals.

On Friday, she announced that, following the DOJ’s intervention, Colorado quickly agreed not to enforce its laws against xAI. “By evening, we secured an agreement with Colorado to hold off enforcement until we can revise the bill through Congress,” she shared, describing this as a substantial victory for both consumers and businesses engaged in AI development.

Dhillon emphasized the importance of civil rights work and noted that civil rights should serve all Americans, regardless of political affiliations. “That’s the role we envision at the DOJ’s Civil Rights Division: standing up for everyone, just as we’ve done in the xAI case,” she stated.

In a more personal note during the interview, she reached out to potential new hires, saying the DOJ’s Civil Rights Division is actively seeking lawyers. She encouraged everyone, especially those in legal professions, to consider this opportunity as a meaningful way to serve the country.

“We need innovative lawyers who wish to challenge the status quo,” she shared, contrasting this with a more defensive mindset often seen among conservative lawyers. “This xAI case demonstrates a proactive approach to legal challenges—a different perspective on what it means to protect rights.”