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consumerfinancialserviceslawmonitor.com2026-08-14

Colorado Proposes Rules for Automated Decision-Making Technology and Chatbot Safety

PolicySafety

Colorado's Department of Law has filed proposed rules implementing the state's Automated Decision-Making Technology Act and Conversational AI Services (Chatbot Safety) Act. Both laws are set to take effect on January 1, 2027. The proposed rules are intended to govern how companies deploy automated decision-making tools and conversational artificial intelligence services.

Under the proposed rules, the Chatbot Safety Act imposes obligations on operators of conversational AI services. Those obligations include disclosing to users that they are interacting with AI, estimating the user's age, and protecting minors from sexually explicit content and simulated emotional dependence. The disclosure requirement means operators must clearly indicate when a user is communicating with an AI system rather than a human. The age-estimation requirement is designed to determine whether a user is a minor. The protections for minors address both sexually explicit material and simulated emotional dependence. The proposal also implements the Automated Decision-Making Technology Act, which is the second law in the package. The rules for both acts are included in the same filing.

The proposed rules have been filed but are not yet final. They will go through a rulemaking process before they take effect. The effective date of January 1, 2027 applies to both acts. The filing begins the process of turning the two laws into specific operational requirements.

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● REC · 2026