Colorado AI Act (SB 24-205)
Effective June 30, 2026
Overview
Requires developers and deployers of high-risk AI systems to use reasonable care to protect consumers from algorithmic discrimination in consequential decisions.
This is an AI-specific state law.
Who this applies to
This regulation applies to both companies that build AI products and companies that use AI tools from other vendors.
AI categories covered
- Employment and hiring
- Consumer-facing AI
- Healthcare AI
- Financial services AI
- Insurance
- Housing
- Education
Specific AI use cases:
- Resume screening and ranking
- Candidate assessment and scoring
- Credit scoring and risk assessment
- Insurance underwriting
What this requires you to do
Impact assessment required
Complete an impact assessment. Document the potential risks and effects of your AI system on affected people.
Transparency notice required
Provide transparency notices. Inform affected individuals that AI is being used and how it influences decisions.
Risk management program required
Implement a risk management program. Maintain ongoing processes to identify, assess, and mitigate AI-related risks.
Bias testing required
Perform bias testing. Test your AI systems for discriminatory impact across protected classes.
Consumer notification required
Notify consumers. Inform consumers about how AI affects decisions that impact them.
Enforcement and penalties
Enforced by Colorado AG under Consumer Protection Act. Up to $20,000 per violation. NIST AI RMF compliance provides safe harbor.
Source
Read the full text
https://leg.colorado.gov/bills/sb24-205
Always verify current language and amendments at the official source.
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