The Colorado Artificial Intelligence (AI) Act, signed into law on May 17, 2024, aims to protect consumers by regulating the use of high-risk AI systems in various industries, including healthcare services. The Act, which takes effect on February 1, 2026, imposes obligations on developers and deployers of high-risk AI systems that make consequential decisions affecting healthcare services. These obligations include public disclosure of AI system types, risk management policies, governance programs, and impact assessments. The Act exempts HIPAA-regulated entities that provide AI-generated recommendations requiring healthcare provider action, but leaves non-HIPAA regulated entities and those using blackbox AI vulnerable. As the Colorado legislature plans to study and potentially revise the bill before its implementation, the fate of this groundbreaking legislation remains uncertain.

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