Colorado Artificial Intelligence Act (SB 24-205) Compliance Checklist 2026
Colorado SB 24-205 regulates "high-risk AI systems" that make or substantially assist in "consequential decisions" (employment, credit, education, healthcare, housing). Implementation was delayed from…
Maximum penalty: $20,000 per violation (enforced by CO Attorney General)
Complete each item below to achieve compliance. Use ComplianceIQ to generate all required documentation automatically.
Regulatory Requirements
1. AI Impact Assessment
Conduct and document an initial impact assessment within 90 days of June 30, 2026, then annually. Covers any high-risk AI system making consequential decisions.
Due: September 28, 2026
2. Consumer Disclosure
Notify consumers when a high-risk AI system is used in a consequential decision affecting them — before or at the time of the decision, in plain language.
Due: June 30, 2026
3. Appeal & Correction Process
Provide consumers a documented process to appeal and obtain human review of AI decisions. Must be communicated at the time of the decision — an email address is not sufficient.
Due: June 30, 2026
4. AI Governance Policy
Establish a written risk management policy covering identification, documentation, and mitigation of algorithmic discrimination risks.
Due: June 30, 2026
Implementation Steps
5. Identify all "high-risk AI systems" in scope (those making consequential decisions)
6. Map every consequential decision made with AI assistance (employment, credit, education, housing, healthcare)
7. Conduct an initial impact assessment within 90 days of June 30, 2026
8. Schedule annual impact assessment reviews
9. Create consumer disclosure notices for AI-assisted consequential decisions
10. Implement an appeal/opt-out process for Colorado consumers
11. Notify the Colorado Attorney General of any high-risk AI deployment
12. Document steps taken to manage algorithmic discrimination risk