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An AI system that makes, or is a substantial factor in making, a consequential decision.
A Consequential Decision is a decision that has a material legal or similarly significant effect on a consumer’s life, including but not limited to:
- Employment opportunities (e.g., hiring, promotion)
- Access to housing or accommodation
- Access to education or educational opportunities
- Financial or lending services
- Healthcare services
- Insurance underwriting or pricing
- Legal services
- Essential goods or services
Key Point: If your AI system affects a consumer’s access to these opportunities or services — directly or by substantially influencing the decision — it is deemed high-risk under the Colorado AI Act.
Colorado AI Act Compliance Checklist for Deployers and Developers
The Colorado AI Act (SB24-205) is one of the strictest AI laws in the U.S., setting clear obligations for companies that develop or deploy AI systems making critical decisions about people’s lives. Whether you're using AI in hiring, lending, insurance, or customer decisioning — this checklist will help you avoid penalties and build trust.
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