In an era where artificial intelligence (AI) increasingly influences various aspects of our lives, Colorado has pioneered the Colorado Artificial Intelligence Act (CAIA). Effective February 1, 2026, this legislation aims to protect consumers from algorithmic discrimination and ensure responsible AI deployment within the state. As a law firm committed to legal accuracy and client satisfaction, Baker Law Group is here to help you navigate the complexities of this landmark law.
What is the Colorado Artificial Intelligence Act?
The CAIA is a comprehensive law that regulates Colorado’s high-risk AI systems’ development and deployment. Its primary goal is to safeguard individuals from algorithmic discrimination—unfair biases or disparate impacts resulting from AI-driven decisions. The Act imposes specific duties on developers and deployers of AI systems to use reasonable care to prevent such discrimination.
Key Definitions Under the CAIA
Understanding the terminology within the CAIA is crucial:
- High-Risk AI System: An AI system that makes or significantly influences consequential consumer decisions. Consequential decisions include education, employment, lending, government services, healthcare, housing, insurance, or legal services. Notably, AI systems intended for narrow procedural tasks or those that do not replace human assessment are excluded from this definition.
- Algorithmic Discrimination: Any differential treatment or impact on individuals based on protected characteristics, arising from using an AI system.
- Developer: An entity that creates or substantially modifies an AI system.
- Deployer: An entity that utilizes an AI system to make or assist in consequential decisions.
Obligations for Developers
Developers of high-risk AI systems bear significant responsibilities under the CAIA:
- Duty of Care: Developers must exercise reasonable care to prevent known or foreseeable risks of algorithmic discrimination in their AI systems. Compliance with specific provisions of the Act establishes a rebuttable presumption of exercising such care.
- Transparency and Documentation: Developers are required to provide deployers with:
- A general statement outlining the AI system’s intended uses and potential harmful applications.
- Documentation detailing the data used for training, known limitations, performance evaluations, and measures taken to mitigate discrimination risks.
- Public Disclosure: A publicly accessible statement summarizing the types of high-risk AI systems developed and the strategies employed to manage discrimination risks must be made available.
- Timely Reporting: Developers must inform the Attorney General and known deployers of any discovered risks of algorithmic discrimination within 90 days of identification.
Obligations for Deployers
Deployers, those who implement AI systems in decision-making processes, have distinct duties:
- Risk Management: Implement a comprehensive risk management policy and program to identify, document, and mitigate discrimination risks associated with AI deployment.
- Impact Assessments: Conduct thorough assessments before deploying high-risk AI systems and perform annual reviews to ensure ongoing compliance and effectiveness.
- Consumer Notifications: Inform consumers when a high-risk AI system makes consequential decisions affecting them, providing details about the system’s purpose and the nature of the decision.
- Appeal Processes: Offer consumers the opportunity to correct inaccuracies in their data and appeal adverse decisions, including the option for human review when feasible.
- Public Transparency: Publish statements summarizing the types of high-risk AI systems deployed and the measures to manage associated discrimination risks.
Enforcement and Compliance
The Colorado Attorney General is empowered to enforce the CAIA. Non-compliance can result in legal action, emphasizing the importance of businesses adhering strictly to the Act’s provisions. Establishing a rebuttable presumption of reasonable care through compliance with the Act’s requirements can serve as a critical defense in potential enforcement actions.
How Baker Law Group Can Assist
Navigating the complexities of the Colorado Artificial Intelligence Act requires a nuanced understanding of both technology and law. Baker Law Group is dedicated to providing expert legal guidance to ensure your business complies with the CAIA. Our services include:
- Compliance Audits: Assessing your current AI systems and practices to identify areas needing alignment with the CAIA.
- Policy Development: Crafting comprehensive risk management policies and impact assessment protocols tailored to your operations.
- Training Programs: Educating your team on the CAIA’s requirements and best practices for ethical AI deployment.
- Ongoing Support: Providing continuous legal support to address emerging challenges and ensure sustained compliance.
Contact a Colorado AI Lawyer
Understanding and implementing the requirements of the Colorado Artificial Intelligence Act is essential for businesses utilizing AI technologies. Baker Law Group is committed to assisting you in navigating this complex legal landscape. Our team of experienced attorneys is ready to provide personalized guidance to ensure your AI practices align with state regulations.
Contact us today to schedule a consultation and take proactive steps toward compliant and ethical AI deployment.
