Who Has Duties Under the Law?
The state of Colorado passed the Colorado AI Act (SB 24-205), which takes effect on June 30, 2026. It creates duties for both developers and organisations that deploy AI in consequential decision-making.
Key Provisions of the Law
Reasonable Care Standard
The law requires both Developers and Deployers to exercise "reasonable care" to prevent Algorithmic Discrimination, which involves discriminatory outcomes based on protected characteristics such as race, sex or age.
High-risk AI Systems
The law classifies certain AI systems used in consequential decisions as High-risk AI. Relevant areas include:
- Employment and performance evaluation
- Credit and insurance approvals
- Education and admissions
- Healthcare
- Law enforcement
Impact Assessments Before and During Use
One requirement is to conduct an Impact Assessment before deployment and monitor the system during use. The assessment covers:
- The purpose of the AI system and its target users
- The types of data used for training and inference
- Bias testing and results
- Remediation measures if discrimination is identified
- Human oversight processes
Transparency
Individuals affected by AI-driven decisions have the right to:
- Be informed that AI is being used in the decision-making process
- Receive an explanation of the factors considered by the AI
- Appeal to a human reviewer
