How do Colorado and Minnesota AI privacy requirements compare?

Last verified: May 31, 2026

Answer

The two states take different approaches. Colorado's AI Act (SB 26-189, which repealed and reenacted SB 24-205 and whose obligations begin January 1, 2027) is a disclosure-and-notice framework: it does not require data protection assessments or high-risk AI classification. Instead, deployers of automated decision-making technology (ADMT) that makes or substantially influences consequential decisions must give consumers interaction notice, disclose adverse outcomes within 30 days, allow data correction, and provide meaningful human review. Minnesota HF-4757 takes the opposite approach, embedding AI governance within broader consumer data privacy protections and requiring data protection assessments before processing that presents foreseeable risk — including automated profiling producing legal or significant effects.

Applicable Regulations

SB-26-189

Colorado AI Act — Automated Decision-Making Technology (SB 26-189, repeal & reenactment of SB 24-205)

enacted

On 2026-05-14 Governor Polis signed SB 26-189, which repeals and reenacts the Colorado AI Act (originally SB 24-205). The new law abandons the risk-management / annual-impact-assessment model and replaces it with a disclosure-and-notice framework governing "automated decision-making technology" (ADMT) that makes or substantially influences "consequential decisions" (education, employment, housing, financial services, insurance, healthcare, government services). The statute formally takes effect 2026-08-12 (no safety clause), but all substantive compliance obligations — for both deployers and developers — begin 2027-01-01, which is the operative date for regulated businesses; the Attorney General's implementing rules are also due by 2027-01-01. The AG has stated he will not enforce until the mandatory rulemaking process concludes.

Key Requirements

Interaction Notice Deployers must give clear notice at the point of interaction when a consumer interacts with an automated decision-making technology (ADMT)
Adverse-Outcome Disclosure Provide a plain-language explanation within 30 days of an adverse consequential decision made or substantially influenced by an ADMT
Data Correction Right Allow consumers to request correction of factually incorrect personal data used by the ADMT
Meaningful Human Review Provide meaningful human review and reconsideration after an adverse consequential decision
Developer Documentation Developers must supply technical documentation (intended uses, known harmful uses, training-data categories, known limitations and risks, and instructions enabling meaningful human review), notify deployers of material updates, and retain compliance records for 3+ years. Like all duties under the act, these obligations begin 2027-01-01
Effective: 2027-01-01 Penalties: Enforced exclusively by the Colorado Attorney General; violations are treated as deceptive trade practices under the Colorado Consumer Protection Act. Before enforcement the AG must give 60 days' written notice and an opportunity to cure; this cure right sunsets 2030-01-01, after which enforcement may be immediate. The AG has stated no enforcement will occur until the mandatory rulemaking process concludes.
HF-4757

Minnesota Consumer Data Privacy Act (MCDPA)

enacted

Enacted May 24, 2024 as Chapter 121 of the 2024 Minnesota Session Laws, codified at Minnesota Statutes Chapter 325O. Effective July 31, 2025 with full enforcement (no cure period) from February 1, 2026. Applies to controllers and processors of personal data of Minnesota residents meeting the thresholds below. Grants consumers rights to access, correct, delete, and port personal data; to opt out of targeted advertising, data sales, and profiling; and — uniquely among state laws — to question the result of a profiling decision, receive the reason for that outcome, and request reevaluation if inaccurate data was used. Requires data protection assessments before processing personal data for targeted advertising, data sales, sensitive data, and profiling with heightened risk. Enforced exclusively by the Minnesota Attorney General; no private right of action.

Key Requirements

Core Consumer Rights Right to access, correct, delete, and obtain a portable copy of personal data. Right to know which third parties received data sales.
Opt-Out of Profiling and Targeted Advertising Consumers may opt out of processing for targeted advertising, sale of personal data, and profiling in furtherance of decisions that produce legal or similarly significant effects.
Profiling Challenge and Explanation Right When profiling produces legal or similarly significant effects, consumers may question the result, receive the reason for the outcome, and request reevaluation if inaccurate data was used. Covered decisions include housing, insurance, education, employment, healthcare, and financial services.
Data Protection Assessment Controllers must conduct and document data protection assessments before processing for targeted advertising, data sales, sensitive data, profiling with heightened risk, and other high-risk processing activities.
Privacy Notice Requirements Controllers must provide a privacy notice with a hyperlink labeled 'Your Privacy Rights' disclosing data categories, purposes, third-party disclosures, and opt-out mechanisms.
Attorney General Enforcement Only the Minnesota AG may enforce. A 30-day cure period applied through January 31, 2026; from February 1, 2026, no cure period — violations subject to immediate civil penalty action.
Effective: 2025-07-31 Penalties: Civil penalties of up to $7,500 per violation, enforceable by the Minnesota Attorney General. No private right of action. Court may also award injunctive relief and litigation costs. The 30-day cure period expired January 31, 2026; full enforcement without cure rights began February 1, 2026.

Full State Analysis

Colorado AI Regulations Minnesota AI Regulations

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Related Questions

  • Does Colorado require AI impact assessments? No longer. SB 26-189 (signed 2026-05-14) repealed and reenacted Colorado's AI Act, eliminating the impact-assessment requirement entirely. Colorado now instead requires deployers of automated decision-making technology (ADMT) to: give consumers clear interaction notice, disclose adverse consequential decisions within 30 days, allow correction of incorrect personal data, and provide meaningful human review and reconsideration. The statute formally takes effect 2026-08-12, but all compliance obligations — for deployers and developers alike — begin 2027-01-01.
  • Can Minnesota consumers opt out of AI profiling? Yes. Minnesota HF-4757 gives consumers the right to opt out of automated profiling decisions that produce legal or similarly significant effects. Controllers must honor opt-out requests within a reasonable time frame and may not deny goods, services, or employment opportunities solely because a consumer exercised this right. The opt-out right applies to profiling used in employment, lending, insurance, and similar high-stakes contexts.
Disclaimer: This content is provided for informational purposes only and does not constitute legal advice. AI regulations and insurance policy terms change frequently. Consult with a qualified attorney or insurance professional for advice specific to your situation. Gridex makes no warranties regarding the accuracy or completeness of this information.