Colorado: Automated Decision-Making Technology in Consequential Decisions Act (SB 26-189)

Senate Bill 26-189 regulates the use of automated decision-making technology (ADMT) that materially influences consequential decisions for Colorado consumers. It applies to both developers (providers) and deployers of covered ADMT in domains including employment, education, housing, and financial services. The law transitions away from mandatory algorithmic impact assessments and instead focuses on consumer transparency, notice, and appeal rights. It requires deployers to provide clear, upfront notice to individuals before an ADMT is used, and a plain-language explanation within 30 days if the ADMT results in an adverse outcome. Furthermore, the legislation grants consumers the right to request meaningful human review of adverse consequential decisions and the right to correct factually inaccurate personal data. The law does not mandate formal bias audits but requires providers to supply deployers with technical documentation detailing the system's intended uses, data sources, and known limitations.