Be compliant with Colorado SB26-189

Compliance

The Colorado SB26-189

Colorado was the first US state to pass comprehensive AI legislation. SB26-189, signed into law on May 14, 2026, repeals and replaces the original Colorado AI Act and takes effect January 1, 2027.

The law governs the use of ADMT (Automated Decision-Making Technology) in consequential decisions, covering employment, lending, housing, education, insurance, healthcare, and essential government services. It places obligations on both the developers who build these systems and the organizations that deploy them. Since liability for discriminatory outcomes is preserved under the Colorado Anti-Discrimination Act, a third party bias audit is the most defensible way to identify and evidence those limitations.

Who the law applies to

Developers that build, sell, or license ADMT AI systems used in consequential decisions such as hiring, lending, housing, or healthcare

Deployers that use AI systems to make or assist consequential decisions affecting Colorado residents

An organization operating in Colorado or affecting Colorado residents

Key requirements

Consumer notice
Deployers must notify consumers before using an AI system to materially influence a consequential decision affecting them

Adverse decision explanation
‍If an AI system contributes to an adverse outcome, consumers must receive a plain language explanation of the system's role within 30 days

Developer documentation
‍Developers must document intended uses, known limitations and risks, training data categories, and instructions for human oversight.

Human review and correction rights
‍Consumers can request correction of inaccurate personal data and meaningful human review of any adverse decision

Preparation