Your company could be using high-risk AI.

AI impact assessment support for Colorado AI Act readiness

Violations may carry civil penalties under Colorado law, including penalties of up to $20,000 per violation in some enforcement actions.

Elsewhere, it could mean missed sales when you can't prove that you take AI risk seriously.

If something goes wrong with AI at a company that never bothered to write a risk management policy, it tends to go worse for them than for the ones who did.

What You Need

If your company is a deployer of a covered high-risk AI system, the Act generally requires:

  1. A written risk management policy and program.
  2. An impact assessment for each covered high-risk AI system.
  3. Records supporting the impact assessment.
  4. An annual review of each high-risk AI system.
  5. Consumer-facing notices at deployment time.
  6. A public website statement.
  7. An incident/discrimination response process.

Is Your AI High-Risk?

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Common Questions

What is a high-risk AI system under the Colorado AI Act?

Generally, the Act defines a high-risk AI system as one that makes, or is a substantial factor in making, a "consequential decision" affecting areas like education, employment, financial services, government services, healthcare, housing, insurance, or legal services. The details matter, so this isn't a substitute for reading the statute or talking to a lawyer.

What are the penalties for non-compliance?

The Act treats violations as deceptive trade practices, which can carry civil penalties of up to $20,000 per violation in some enforcement actions. Not having a risk management policy in place when something goes wrong tends to make things harder to defend.

What does the compliance package include?

Everything you need: AI system inventory, risk management policy, per-system impact assessments, testing records, annual review memo, change-management process, consumer and adverse decision notice templates, public AI disclosure statement, record retention file, and incident escalation procedures.

When does the Colorado AI Act take effect?

The Colorado AI Act (SB24-205) was signed into law in May 2024. Most deployer obligations take effect June 30, 2026.

How much does it cost?

The full compliance package is $2,849. An annual refresh to keep assessments current is $1,500/year.