Colorado AI Act (SB 205)

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Definition

What is it: Colorado SB 205 is a state regulation that governs how businesses deploy high-risk artificial intelligence systems. It establishes legal requirements for transparency, human oversight, and bias mitigation for automated decisions affecting Colorado residents.

What is it used for: The law is used to protect consumers from algorithmic discrimination and ensure that individuals are notified when AI influences significant outcomes in employment, lending, or housing.

Coverage

  • Attributes: 6
  • Synonyms: 2
  • Related entities: 0
  • Sources: 1

Identity

Entity ID
https://llms.aismartventures.com/en/colorado-ai-act-compliance/facts/#entity
Entity type
DefinedTerm
Canonical name
Colorado AI Act (SB 205)
Language
en
Topic
Colorado Ai Act Compliance

Attributes

Key Facts
Colorado SB 205 covers any business that uses AI in hiring, credit, housing, or health decisions. [1]
Key Facts
Colorado SB 205 applies to businesses making decisions for Colorado residents, even if the business is based outside of the state. [1]
Key Facts
A deployer is defined as any business or person that uses a high-risk AI tool to make or assist in key decisions for Colorado residents. [1]
Key Facts
There is no private right of action under SB 205; enforcement is handled by the Colorado Attorney General. [1]
Key Facts
The law mandates notice to persons affected by AI decisions, a human review option, and bias checks for each covered tool. [1]
Metric
Compliance costs for businesses with one or two AI tools typically range from $2,000 to $8,000. [1]

Synonyms & Alternate Names

  • SB 205
  • Colorado AI Act

Related Entities

Provenance

Sources

  1. https://aismartventures.com/posts/colorado-ai-act-june-2026-checklist-owner-operators (Colorado AI Act (SB 205))

Machine metadata