ColoradoHigh RiskEnacted

Do I need to disclose AI chatbots to customers in Colorado?

Customer-facing AI chatbots, virtual assistants, and automated response systems. Here is what Colorado businesses need to know in 2026.

💬 ColoradoChatbot Disclosure

Colorado has enacted SB 24-205 — Colorado AI Act (amended 2026 by SB 26-189). The most comprehensive US state AI law. As amended by SB 26-189 (2026) it takes effect January 1, 2027 and centers on transparency/disclosure for consequential automated decisions (the original algorithmic-discrimination duty of care was repealed). Attorney General rulemaking is underway; no final rules have been published yet.

Deadline
January 1, 2027
Max Penalty
AG-enforced (Colorado Consumer Protection Act); up to ~$20,000 per violation
Law
SB 24-205 — Colorado AI Act (amended 2026 by SB 26-189)
Key requirements:
Review SB 24-205 — Colorado AI Act (amended 2026 by SB 26-189) for applicability
Conduct internal AI audit to identify risk areas
Document all AI decision-making processes
Implement disclosure notices for affected parties

📜 Federal Laws That Also Apply

State law does not replace federal law — you must comply with both. These federal rules apply to chatbot disclosure nationwide:

FTC Act Section 5 (deception)
CCPA (data collection)

Frequently Asked Questions

Does chatbot disclosure regulation apply to small businesses in Colorado?+

It depends on the thresholds written into the specific statute, and those are not comparable across laws — some key on employee count or revenue, others on user volume or on the kind of system you deploy. We do not publish a generic small-business exemption for Colorado, because stating one the statute does not contain would be worse than stating none. Read the primary source linked from our Colorado law page to confirm whether you are in scope.

What is the deadline for chatbot disclosure compliance in Colorado?+

The key deadline in Colorado is January 1, 2027. The law is enacted and compliance is required by the deadline above.

What happens if I don't comply with AI laws in Colorado?+

Colorado penalties for AI non-compliance: AG-enforced (Colorado Consumer Protection Act); up to ~$20,000 per violation. Who enforces, and how, varies by statute — check the primary source linked from our Colorado law page for the enforcement authority and process that actually applies to you.

Do federal AI laws override Colorado AI regulations?+

Federal law does not currently preempt state AI law. Colorado's AI statutes apply independently of federal rules, and federal laws like ECOA, FCRA, and HIPAA apply alongside them — so you must comply with both.

How do I prove compliance with Colorado AI laws?+

Best practice: document all AI systems used, conduct an internal audit, implement required disclosures, and keep records for at least 3 years. For high-risk uses like chatbot disclosure, consider hiring an independent third-party auditor to validate compliance.

Same Question in Other States

Do I need to disclose AI chatbots to customers in California?
Do I need to disclose AI chatbots to customers in Illinois?
Do I need to disclose AI chatbots to customers in New York?
Do I need to disclose AI chatbots to customers in Texas?
Do I need to disclose AI chatbots to customers in Washington?

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CO Quick Facts
Law
SB 24-205 — Colorado AI Act (amended 2026 by SB 26-189)
Status
Enacted
Deadline
January 1, 2027
Max Penalty
AG-enforced (Colorado Consumer Protection Act); up to ~$20,000 per violation
Risk Level
High
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