(Bloomberg) -- The life insurance industry could become one of the first sectors to be subjected to strict rules around the use of algorithms and models powered by artificial intelligence as regulators seek to protect consumers from discrimination and bias.

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The Colorado Division of Insurance proposed new rules last month that would require state-licensed life insurers to provide an inventory of all AI models they use, establish strict governing principles on how they deploy algorithms, and submit to significant oversight and reporting demands.

“Our core goal is to make sure people aren’t being discriminated against,” said Colorado Insurance Commissioner Michael Conway. “To get there, we need to help insurers build out their own muscle memory of how they’re going to use big data in general moving forward.”

The meteoric rise of generative AI tools like OpenAI’s ChatGPT have lit a fire under regulators already struggling to draft rules around how companies can use big data in everything from employee hiring to rental applications. There is momentum in Europe and the US to address issues of algorithmic discrimination and develop safeguards around AI tools on the federal level. But experts say the most granular rules for AI — and the ones that will have important effects for companies — will happen on the state level, industry by industry.

“This is the first comprehensive regulatory rule for AI governance, not just for insurance, but I think in general,” said Avi Gesser, co-chair of the data strategy and security program at the law firm Debevoise & Plimpton. “ChatGPT caused some regulators to move more quickly on AI issues and ask who has been thoughtful about this. Looking around, it wouldn’t surprise me if they looked to Colorado.”