Colorado law on high-risk AI systems (2024)
The first US state law requiring developers and deployers of high-risk AI to exercise reasonable care against algorithmic discrimination.
The statute covers AI systems that are a substantial factor in a consequential decision about a person: employment, credit, housing, health care, insurance, education. It requires the developer to document known risks and the deployer to carry out an impact assessment, notify individuals and give them a means of appeal. Complying with these duties creates a presumption of reasonable care, which makes it a risk-management instrument rather than a ban. Close in spirit to the European regulation, it opens state-by-state AI liability in the United States, which the insurer must follow law by law, and whose effective date has already been pushed back.
Bill SB 24-205 was signed on May 17, 2024, to take effect on February 1, 2026; a law passed in a special session in August 2025 pushed that date back to June 30, 2026.
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