Definition
A U.S. state law requiring organizations to identify, disclose, and manage AI systems when they materially influence consequential decisions (employment, housing, credit, healthcare, education, government benefits). Organizations must document AI use, test for adverse outcomes, and provide transparency when AI is a significant factor in decisions affecting individuals.
Why it matters
Colorado represents the deregulatory shift in U.S. state AI law: the focus moved from technical requirements to outcome accountability. If your AI system makes or materially influences hiring, lending, or insurance decisions, you must now map those systems, disclose their use, and manage their risks.