Colorado Artificial Intelligence Act (SB 205)

The first comprehensive US state AI law. Requires developers and deployers of 'high-risk AI systems' used to make consequential decisions about Colorado consumers to perform risk assessments, implement impact assessments, and disclose AI use. Covers decisions affecting employment, credit, education, healthcare, housing, and insurance.

Key requirements

• Algorithmic impact assessment before and during deployment
• Annual impact assessment update if material changes occur
• Disclose to affected consumers that an AI system was used in a consequential decision
• Provide a meaningful opportunity to correct inaccurate data
• Establish an appeals or human review process for adverse decisions
• Bias testing across protected characteristics

Key terms

Further reading

• Colorado AI Act Compliance: Under 90 Days to the June 30 Deadline
• Federal AI Preemption 2026: Which State AI Laws Still Apply to Your Business?
• How to Do an AI Risk Assessment (Small Team Guide)