Colorado Publishes Draft ADMT Regulations

August 13, 2026 - 00:32

On August 11, 2026, the Colorado Department of Law finally published its draft regulations for Automated Decision-Making Technology (ADMT) and Conversational AI. The release marks a major step in the state's effort to put concrete guardrails around algorithms that make consequential decisions about consumers, from loan approvals to hiring and housing.

The draft rules are the first detailed look at how the state plans to enforce the 2024 Colorado AI Act, which was the first comprehensive state law targeting algorithmic discrimination. The regulations go beyond simple transparency. They require companies that deploy high-risk ADMT to conduct annual impact assessments, document the data used to train their models, and take reasonable steps to mitigate any discovered bias. The rules also carve out specific duties for developers versus deployers, clarifying who is responsible when a system fails.

A notable section addresses Conversational AI, including chatbots and voice agents. The draft requires these systems to clearly disclose when a person is interacting with a machine, not a human. It also prohibits certain uses of AI in mental health or crisis settings without explicit safeguards. The department is seeking public comment for the next 60 days, with a public hearing scheduled for late October. Final rules are expected by early 2027, giving businesses a clear compliance timeline. However, industry groups have already signaled concerns about the cost of compliance, while consumer advocates argue the draft does not go far enough to ban certain high-risk uses outright.