Colorado AI Act vs NYC Local Law 144
Side-by-Side Comparison

Understand the key differences between Colorado's comprehensive AI law and NYC's hiring-focused regulation.

Colorado AI Act

  • Scope: All high-risk AI systems
  • Coverage: 8 decision areas
  • Effective: June 30, 2026
  • Penalties: Up to $20,000/violation

NYC Local Law 144

  • Scope: Hiring & promotion AI only
  • Coverage: Employment decisions
  • Effective: July 5, 2023 (enforced now)
  • Penalties: $500-$1,500/violation

Detailed Comparison

FeatureColorado AI ActNYC LL144
JurisdictionColorado (state-wide)New York City only
Effective DateJune 30, 2026✅ July 5, 2023 (active)
ScopeAll high-risk AI systemsAutomated Employment Decision Tools (AEDTs)
Decision Areas Covered
  • Employment
  • Education
  • Financial/Lending
  • Healthcare
  • Housing
  • Insurance
  • Government Services
  • Legal Services
  • Hiring
  • Promotion
Who Must ComplyDevelopers & DeployersEmployers & Employment Agencies
Impact Assessment✅ Annual (deployers)✅ Annual bias audit
Independent Auditor Required❌ No✅ Yes
Consumer/Candidate Notice✅ Required before decision✅ 10 days before use
Public Disclosure✅ AI systems + risk management✅ Audit results on website
Risk Management Policy✅ Required (deployers)❌ Not specified
Developer Obligations✅ 5 specific duties❌ Not specified
Enforcement AgencyColorado Attorney GeneralNYC Dept of Consumer & Worker Protection
Maximum Penalty$20,000 per violation$500-$1,500 per violation
Cure Period✅ Yes (first violation)Varies by violation

Which Law Applies to You?

You Need Colorado Compliance If:

  • You do business in Colorado
  • You develop or deploy high-risk AI
  • Your AI makes consequential decisions
  • You serve Colorado residents

You Need NYC Compliance If:

  • You hire or promote in NYC
  • You use AI for candidate screening
  • Your AI scores or ranks applicants
  • You're an employer or employment agency

Important: If you use hiring AI in both Colorado and NYC, you must comply with both laws. NYC LL144 is already enforced, while Colorado takes effect in 2026.

Key Takeaways

Broader Scope

Colorado covers 8 decision areas vs NYC's focus on hiring only. Colorado is more comprehensive.

Timing Difference

NYC is enforced NOW (since July 2023). Colorado takes effect June 2026. Prioritize NYC if applicable.

Higher Stakes

Colorado penalties are 13x higher ($20K vs $1.5K). Both require annual assessments and public disclosure.

Check Your Multi-State Compliance

Use our AI Inventory tool to assess compliance across Colorado, NYC, and other jurisdictions.