Substantial factor
A factor that meaningfully influences a consequential decision.
How the laws define this
Both Colorado SB24-205 and Kentucky SB 4 agree that a substantial factor requires an AI system to go beyond merely providing background information, establishing that its outputs must materially influence, assist in, or alter a decision's outcome rather than perform basic informational functions. Both frameworks ensure that simple support mechanisms are excluded from this higher standard of influence. However, the instruments diverge in their operational focus and specific exclusions. Colorado SB24-205 uses this standard to determine when an AI system qualifies as a substantial contributor to a consequential decision, while explicitly excluding factors that perform narrow procedural or preparatory tasks. In contrast, Kentucky SB 4 frames the concept around whether an AI component meaningfully shapes or determines decision outcomes subject to oversight, using the distinction specifically to separate routine automation from systems that trigger high-risk regulatory controls.
Synthesised from the 2 statutory definitions below. Each one is quoted in full, with its source.
Definitions (2)
A factor that assists in making a consequential decision or is capable of altering the outcome of such a decision, excluding factors that merely provide information or perform narrow procedural or preparatory tasks; this standard determines when an AI system qualifies as a substantial contributor to consequential decisions under the Act.
A standard indicating the AI system materially influences the outcome of a decision rather than merely providing background information; an AI component is a substantial factor when its outputs meaningfully shape or determine decision outcomes subject to the Act's oversight rules. This concept is used to distinguish routine automation from systems triggering high-risk controls.
Related Terms
Significant impact
A context‑specific threshold of material effect or harm....
significant decisions
Decisions with notable individual or societal impact....
High-risk artificial intelligence system
An AI system that substantially factors in consequential decisions....
Decision significance
Classification of expected impact: non‑significant, significant, critical....
Consequential decisions
Decisions materially affecting individuals' rights or access to services....