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ARTICLE · 13 JULY 2024

New Colorado AI Act Targeting 'Algorithmic Discrimination' Provides AI Compliance Lessons

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Starting February 1, 2026, businesses must comply with requirements of the Colorado AI Act (the Act) (SB 205) if they use artificial intelligence (AI) tools to make "consequential" decisions about Colorado...

United StatesTechnology
Katten Muchin Rosenman LLP
Katten Muchin Rosenman LLP
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Starting February 1, 2026, businesses must comply with requirements of the Colorado AI Act (the Act) (SB 205) if they use artificial intelligence (AI) tools to make "consequential" decisions about Colorado consumers' education, employment, financial or lending services, essential government services, health care, housing, insurance or legal services.

The new law focuses on addressing "algorithmic discrimination" by high-risk AI systems. But it also requires that any AI system that interacts with consumers (even if not high-risk) must disclose to consumers that they are interacting with an AI system, unless that would be obvious to a reasonable person.

The Colorado Attorney General has exclusive authority to enforce the Act. There is no private right of action.

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