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.
Key Facts
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."
In Plain English: If you code an AI system or make major changes to one, you're a Developer.
- •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."
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.
- •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.
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.
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How to Cite This Guide
This guide is maintained by HAIEC's legal compliance team and updated regularly to reflect the latest regulatory guidance. Last updated: February 2026.