Governance

Colorado AI Act

First comprehensive US state AI law requiring risk assessments and disclosure for high-risk AI systems.

Definition

The Colorado AI Act (SB 24-205), signed into law in May 2024 and effective February 1, 2026, is the first comprehensive state-level AI regulation in the United States. It imposes obligations on both developers and deployers of "high-risk AI systems."

Key requirements include:

  • Risk management policy: Deployers must implement reasonable policies to manage algorithmic discrimination risks
  • Impact assessments: Annual assessments for high-risk AI systems
  • Consumer disclosure: Notice when AI is used in consequential decisions
  • Developer documentation: Detailed information about training data, limitations, and intended uses

The law covers AI systems making consequential decisions in education, employment, financial services, healthcare, housing, insurance, and legal services.

Sources

  • Colorado SB 21-169
  • Colorado Consumer Protection Act