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Legal Guide

Colorado Artificial Intelligence Act

Senate Bill 24-205 | Complete Legal Breakdown with Official Citations

Effective: June 30, 2026
Status: Upcoming
Penalties: Up to $20,000/violation

Table of Contents

Overview

The Colorado Artificial Intelligence Act (Senate Bill 24-205) is the first comprehensive state-level AI regulation in the United States. It requires developers and deployers of high-risk AI systems to prevent algorithmic discrimination and ensure transparency in AI-driven decision-making.

Official Citation

Colorado Revised Statutes § 6-1-1701 et seq. (2024)

View Official Bill Text

Key Facts

Effective Date
June 30, 2026
(Delayed from Feb 1, 2026)
Jurisdiction
Colorado, USA
Applies to businesses operating in CO
Enforcement
Colorado Attorney General
Exclusive enforcement authority
Penalties
Up to $20,000 per violation
Per instance of discrimination

Who This Law Applies To

Developers

Legal Definition: "A person doing business in this state that develops or intentionally and substantially modifies an artificial intelligence system."

Citation: CRS § 6-1-1701(7)

In Plain English: If you code an AI system or make major changes to one, you're a Developer.

Examples:
  • AI software company building resume-screening tools
  • Tech startup creating credit-scoring algorithms
  • Healthcare company developing diagnostic AI

Deployers

Legal Definition: "A person doing business in this state that deploys a high-risk artificial intelligence system."

Citation: CRS § 6-1-1701(6)

In Plain English: If you use an AI tool to help decide who gets hired, approved for a loan, accepted to a school, etc., you're a Deployer.

Examples:
  • Denver company using AI for hiring decisions
  • Colorado bank using AI for loan approvals
  • University using AI for admissions

⚠️ Important: Both Can Apply

A California-based HR tech company sells resume-screening AI to a Denver company. Both the California developer AND the Denver deployer must comply with Colorado law.

Geographic Scope:

The law applies to anyone doing business in Colorado who develops or deploys AI systems affecting Colorado residents, regardless of where the company is physically located.

Need Help with Colorado AI Act Compliance?

Our platform provides automated compliance assessments, policy generation, and ongoing monitoring to ensure your AI systems meet Colorado requirements.

How to Cite This Guide

HAIEC. (2026). Colorado Artificial Intelligence Act: Complete Legal Breakdown with Citations. Retrieved from https://haiec.com/compliance/colorado-ai-act/legal-guide

This guide is maintained by HAIEC's legal compliance team and updated regularly to reflect the latest regulatory guidance. Last updated: February 2026.