Polis Vetoes Colorado Limits on AI-Fueled Wage, Price Decisions

Colorado Gov. Jared Polis (D) vetoed a bill to restrict businesses’ use of AI tools and personal data to set worker wages and consumer prices, a win for the tech industry in the fight over what critics call surveillance pricing.

The measure (HB26-1210), which state lawmakers passed in May, would have banned the use of personal characteristics such as genetic data, history of online behavior, and biometric information in setting wages or prices.

Consumer and worker advocates have called for legislation that prevents companies using artificial intelligence to set the highest possible prices and lowest possible wages for each person. The tech industry has fought similar proposals around the country, calling the fears about surveillance pricing overblown and misunderstood.

Polis said in his June 2 veto statement he supports the intention of preventing personalized price gouging but that the legislation’s scope and definitions are overly broad. He also noted the state’s newly enacted law on automated decision-making technologies addresses some of the same concerns by requiring disclosures when companies make AI-powered decisions affecting workers and consumers.

The surveillance pricing bill could discourage “perfectly acceptable uses of technology to set an appropriate price or wage,” including some types of consumer discount programs, the governor said.