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SB 24-205 takes effect June 30, 2026

Colorado AI Act exposure audit

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Sec. 6-1-1703(6) provides reduced obligations for small deployers (fewer than 50 employees).

Sec. 6-1-1703(3) requires deployers to retain records of AI-influenced consequential decisions and produce them on Attorney General request.

The Act requires disclosing that an AI system is influencing a consequential decision.

Sec. 6-1-1703(4)(b) requires a mechanism for consumers to correct data and appeal adverse consequential decisions, with human review where feasible.

Sec. 6-1-1703(2) requires a risk management policy. Aligning with NIST AI RMF supports an affirmative defense under Sec. 6-1-1706.

The Colorado AI Act applies to AI that influences decisions in employment, finance, housing, healthcare, insurance, education, or legal services. 1–2 sentences is enough.

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Colorado AI Act Exposure Audit — SB 24-205 Compliance Gaps | Aguardic - Aguardic