The Colorado AI Act, effective from February 1, 2026, regulates developers and deployers of high-risk AI systems in sectors like employment and healthcare to prevent algorithmic discrimination. It mandates risk management, transparency in AI usage, public disclosure of system details, and the right for consumers to appeal adverse decisions made by AI. Violations are managed as unfair trade practices, with enforcement by the Colorado Attorney General, but there's no private right to sue. Small businesses and certain compliant entities are exempt.

The Colorado AI Act applies to:

- Developers: Those who develop or intentionally and substantially modify high-risk AI systems in Colorado.

- Deployers: Entities using high-risk AI systems in Colorado to make or substantially influence consequential decisions affecting consumers in areas like education, employment, insurance, healthcare, and more.

To ensure compliance with the Colorado AI Act, businesses should:

1. Conduct an AI Inventory: Identify all AI systems in use, particularly those classified as high-risk due to their impact on consequential decisions.

2. Implement Risk Management: Establish and update regularly a risk management policy and program to address and mitigate algorithmic discrimination risks.

3. Perform Impact Assessments: Conduct annual impact assessments for high-risk AI systems focusing on their purpose, use, risks, data processing, performance metrics, and mitigation strategies.

4. Ensure Transparency: Provide consumers with clear notices when they interact with AI systems and disclose any AI involvement in consequential decisions.

5. Prepare Documentation: Developers must provide deployers with necessary information, and deployers must keep records of compliance efforts.

6. Stay Updated: Monitor any forthcoming rules or amendments from the Colorado Attorney General's office.

7. Leverage Recognized Frameworks: Aim to comply with frameworks like NIST AI Risk Management to establish an affirmative defense against violations.

To further ensure you are in compliance and to become FAIIR Certified, contact FAIIR today for Colorado’s first AI Compliance Consultation. Their experts will guide you through the process, ensuring your AI practices meet the Colorado AI Act's standards, and you can proudly display your FAIIR Certification stamp.

FAIIR, or the Foundation for AI Integrity & Regulation, is an AI consulting firm dedicated to aiding businesses in achieving and maintaining compliance with evolving artificial intelligence regulations. Here's a brief overview:

- Mission: FAIIR's primary goal is to ensure that organizations using AI technologies adhere to the highest standards of ethical AI practices and regulatory compliance.

- Services:

- Consultation: FAIIR provides expert advice on integrating AI in compliance with laws like the Colorado Artificial Intelligence Act (CAIA), which focuses on mitigating risks of algorithmic discrimination. They also assist with frameworks like the U.S. Department of Commerce’s AI Risk Management Framework, which offers guidelines for managing risks associated with AI deployment.

- Certification: FAIIR offers FAIIR Certification, which verifies that a company's AI practices meet or exceed global standards for ethical AI use, including ISO/IEC 42001, an international standard for AI management systems. This certification process involves thorough assessments, training, and continuous monitoring to ensure compliance with current and emerging AI regulations.

- Approach: FAIIR employs a proactive stance towards compliance, helping businesses not only react to current regulations but also anticipate future legislative changes. This includes:

- Risk Assessment: Evaluating AI systems for potential biases and discriminatory outcomes.

- Compliance Strategy: Developing strategies tailored to specific regulatory environments, considering geographic, role-specific, and use-case requirements.

- Ongoing Support: Offering tools and services for real-time tracking of regulatory changes and updates to maintain compliance as laws evolve.

- Global Standards: FAIIR's methodology includes adherence to international standards like ISO/IEC 42001, ensuring that businesses can operate with AI technologies across different jurisdictions while maintaining ethical integrity and regulatory compliance.

- Educational Role: Beyond consultancy, FAIIR educates businesses about AI ethics and governance, promoting a culture of responsible AI use.

By partnering with FAIIR, companies and their clientele gain assurance that AI is being leveraged for everyone’s benefit in a ethical manner.