Colorado Artificial Intelligence Act (SB 24-205): AI Compliance Requirements
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 Feb 1, 2026 to June 30, 2026 by SB 25B-004. Developers and deployers must conduct impact assessments, disclose AI use, and allow consumers to appeal AI decisions.
Key Facts
June 30, 2026
$20,000 per violation (enforced by CO Attorney General)
What Your Business Must Do
4 compliance requirements identified. Critical requirements carry the highest risk of enforcement action.
AI Impact Assessment
CriticalConduct and document an initial impact assessment within 90 days of June 30, 2026, then annually. Covers any high-risk AI system making consequential decisions.
Deadline: September 28, 2026
Consumer Disclosure
High PriorityNotify 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.
Deadline: June 30, 2026
Appeal & Correction Process
High PriorityProvide 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.
Deadline: June 30, 2026
AI Governance Policy
Medium PriorityEstablish a written risk management policy covering identification, documentation, and mitigation of algorithmic discrimination risks.
Deadline: June 30, 2026
Frequently Asked Questions
Does Colorado Artificial Intelligence Act (SB 24-205) apply to my business?
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 Feb 1, 2026 to June 30, 2026 by SB 25B-004. Devel. Use ComplianceIQ's free scanner to get a personalized assessment in under 5 minutes.
What is the penalty for non-compliance?
The maximum penalty under Colorado Artificial Intelligence Act (SB 24-205) is: $20,000 per violation (enforced by CO Attorney General). Fines are typically scaled by company size, severity of violation, and whether violations were willful or accidental.
How do I comply with Colorado Artificial Intelligence Act (SB 24-205)?
The 4 requirements above cover the core obligations. The fastest path to compliance is: (1) conduct an AI risk assessment, (2) document your AI systems, (3) implement transparency disclosures where required. ComplianceIQ generates all required documents automatically.
Official Source
https://leg.colorado.gov/bills/sb24-205Don't leave compliance to chance
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