What is a high-risk AI system under Colorado law?

Last verified: June 1, 2026

Answer

The 'high-risk AI system' classification no longer exists in Colorado law. SB 26-189 (signed 2026-05-14) repealed and reenacted the Colorado AI Act, replacing the high-risk-AI-system model with a new framework centered on 'automated decision-making technology' (ADMT) that makes or substantially influences 'consequential decisions' — covering education, employment, housing, financial services, insurance, healthcare, and government services. The focus shifted from system classification to disclosure and consumer-rights obligations at the point of use.

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.

Where this lands operationally

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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.
  • What are the Colorado AI Act consumer notice requirements? Under Colorado's AI Act as reenacted by SB 26-189 (obligations begin 2027-01-01), ADMT deployers have two distinct notice duties: (1) interaction notice — clear notice at the point of interaction when a consumer interacts with an ADMT; and (2) adverse-outcome disclosure — a plain-language explanation delivered within 30 days when an ADMT makes or substantially influences an adverse consequential decision. The prior SB 24-205 'proximate cause' and pre-decision notice framing no longer applies.