Colorado AI Act Takes Effect February 2026 as Attorney General Signals Non-Enforcement

Colorado's Senate Bill 24-205, signed into law on 17 May 2024 and effective 1 February 2026, requires developers and deployers of high-risk artificial intelligence systems to use reasonable care to protect consumers from algorithmic discrimination. The Colorado Attorney General filed a statement in a related court proceeding indicating no intent to enforce the Act in its current form, citing legislative changes then under consideration. The law's operative obligations nonetheless remain in force absent legislative repeal or amendment.

The controlling statutory text is CRS Title 6, Article 1.3 (Consumer Protections for Artificial Intelligence), enacted as Chapter 198, Session Laws 2024. Developers of high-risk AI systems must complete impact assessments, disclose information to deployers, notify the Attorney General of known algorithmic discrimination risks within 90 days of discovery, and publish public statements summarizing risk-management practices. Deployers carry parallel obligations including annual reviews, consumer disclosures, and appeal mechanisms for adverse consequential decisions. The Attorney General holds exclusive enforcement authority under the Act.

AI system developers and deployers operating in Colorado remain subject to the Act's substantive requirements even during any informal enforcement pause. Developers must maintain documentation sufficient to establish a rebuttable presumption of reasonable care. Deployers in the insurance and regulated banking sectors may qualify for sector-specific compliance pathways under the Act's carve-outs. Any violation constitutes a deceptive trade practice under the Colorado Consumer Protection Act, exposing violators to civil penalties.

The AG's non-enforcement signal does not create a legal exemption or safe harbor. The statute has not been amended or repealed. Pending legislative amendments may modify the Act's scope, but remain under consideration by the Colorado General Assembly. Businesses with operations touching Colorado consumers should complete AI risk assessments and document compliance steps, given the AG's ability to reverse its enforcement posture without advance notice.

Our firm advises developers and deployers on US state AI regulation, including Colorado SB24-205 compliance, impact assessment design, and algorithmic discrimination risk management. We work with a dedicated partner network across US jurisdictions and invite contact for compliance reviews. Our work includes AI governance, high-risk AI system compliance, state AI legislation, algorithmic discrimination risk, impact assessments, AI deployer obligations, and US AI regulatory strategy.

Source: Colorado SB24-205, Consumer Protections for Artificial Intelligence, Chapter 198 (2024 Session Laws), signed 17 May 2024, effective 1 February 2026, https://leg.colorado.gov/bills/sb24-205; confirmed 4 May 2026.

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