AI Frontier Institute

Consumer Protections for Artificial Intelligence

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Senate Bill 24-205, the Colorado Artificial Intelligence Act, was signed by Governor Polis on May 17, 2024 as Chapter 198 and was the first comprehensive state artificial intelligence statute in the United States. It required developers and deployers of high-risk artificial intelligence systems to use reasonable care to protect consumers from algorithmic discrimination in consequential decisions. Developers had to disclose system information and known risks to deployers; deployers had to maintain risk management programs and notify consumers when an artificial intelligence system made a consequential decision about them; and any entity deploying consumer-facing AI had to disclose that the consumer was interacting with an artificial intelligence system. Enforcement sat exclusively with the Attorney General as a deceptive trade practice, with exemptions for banks, credit unions and insurers already under specified regulatory frameworks. The act never took effect. Governor Polis signed it with publicly stated reservations and asked the legislature to refine the approach before implementation. Its original February 1, 2026 start date was pushed to June 30, 2026 by SB25B-004, signed August 28, 2025 in a special session. On May 14, 2026, before that date arrived, Senate Bill 26-189 repealed and reenacted part 17 of article 1 of title 6 with a narrower framework built on disclosure and consumer rights around automated decision-making technology. This entry is retained because SB24-205 set the terms of the national argument over state AI regulation, and because its repeal is the reason Colorado's operative AI law today is SB26-189.

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