On 11 August 2026, the Colorado Department of Law filed proposed rules implementing two 2026 statutes: Senate Bill 26-189, the Automated Decision-Making Technology Act, and House Bill 26-1263, the Chatbot Safety Act. The rules are at proposed-rule stage. The formal comment period closes 26 October 2026; comments submitted before 4 September 2026 will be considered for any revisions presented at the public hearing.
SB 26-189 defines automated decision-making technology (ADMT) as any system that uses computation to make or materially influence a consequential decision affecting a consumer. Developers of ADMT used for consequential decisions must provide impact assessments; deployers must give consumers the right to request human review of ADMT-driven decisions and to correct inaccurate personal data used as inputs. HB 26-1263 requires chatbot operators to estimate user age, disclose that users are interacting with an automated system rather than a human, safeguard minor users from sexually explicit content and simulated emotional dependence, and maintain suicide and self-harm response protocols. Chatbot operators are prohibited from representing AI outputs as equivalent to licensed professional advice.
Employers using ADMT in hiring, performance assessment, or termination must notify affected applicants and employees and offer a mechanism for personal data correction. Healthcare platforms, financial institutions, and insurers deploying ADMT for benefit or coverage decisions must provide written disclosure of the decision logic. Chatbot providers operating consumer-facing products in Colorado must implement age-estimation systems and configure content safeguards for users identified as minors. AI-powered legal, medical, or financial information tools must carry prominent disclaimers stating that outputs do not constitute licensed professional services.
The proposed rules are subject to revision following the comment period closing 26 October 2026. SB 26-189 extends and in part supersedes earlier Colorado AI consumer protection measures under SB 24-205. Colorado's proposed rules are among the most operationally detailed state-level AI rules filed in the US as of August 2026, specifying both developer obligations at the training stage and deployer obligations at the point of use.
Licentium monitors US state AI legislation and advises on compliance with automated decision-making and chatbot regulations at the state level. Businesses with AI-powered decision systems or consumer-facing chatbot products operating in Colorado may contact us for a compliance assessment. Work we undertake includes AI governance policy drafting, ADMT impact assessment advisory, state AI law monitoring, and consumer-facing AI disclosure design.