The U.S. Department of Justice filed to intervene in a lawsuit brought by artificial intelligence company xAI that challenges a new Colorado law prohibiting “algorithmic discrimination.” The Department argues the statute violates the Equal Protection Clause of the Fourteenth Amendment. The Colorado law requires certain AI “developers” and “deployers” to meet disclosure, reporting, and prevention requirements for algorithmic products used in services such as mortgage lending, student admissions, and job-candidate selection. The Justice Department’s filing focuses on requirements to prevent unintentional disparate impact based on protected characteristics such as race and sex, and on an explicit carveout that exempts liability for discriminatory algorithms designed to advance “diversity” or “redress historic discrimination.” xAI filed its lawsuit on April 9, and the Justice Department’s intervention would position the federal government to participate directly in the case challenging Colorado SB24-205.
U.S. Department of Justice 2026-04-24
U.S. Department of Justice moves to intervene in xAI lawsuit challenging Colorado algorithmic discrimination law
The U.S. Department of Justice has moved to intervene in xAI’s lawsuit challenging Colorado’s new “algorithmic discrimination” law, arguing that the statute violates the Equal Protection Clause of the Fourteenth Amendment. The filing targets requirements to prevent unintentional disparate impact in algorithmic decision-making and an exemption from liability for algorithms designed to promote diversity or redress historic discrimination, positioning the federal government in the challenge to Colorado SB24-205.