This page covers enacted statutes as of June 2026. Not legal advice. † Section numbers marked with † should be verified against current codified statutes before legal reliance. For a plain-English compliance answer, use the Compliance Checker at DiscloseAI.net.
Legal Background
Colorado SB 24-205 (the Colorado AI Act) imposes obligations on deployers and developers of high-risk AI systems making consequential decisions in employment, housing, credit, education, and healthcare. Small businesses acting as deployers must conduct impact assessments, implement risk management policies, and provide consumer notices and appeal rights.
Applicable Statutes
SB 24-205 – Colorado Artificial Intelligence Act
Regulates high-risk AI systems in consequential decisions. Requires risk management programs, impact assessments, consumer disclosures, and appeal rights. Effective February 1, 2026.
Citation: Colo. Rev. Stat. § 6-1-1701 et seq. †
Small Business Obligations
- Determine whether your AI system is 'high-risk' under Colorado's definition
- If deploying a high-risk AI system, implement a risk management program
- Provide required notices to consumers when AI makes or assists consequential decisions
- Allow consumers to appeal adverse AI-assisted decisions
- Conduct and document impact assessments for high-risk AI systems