Colorado AI Act SB 205 — Add Required AI Disclosures to Your App (July 2026)
The Exact Error
// This is a legal compliance gap, not a runtime error.
// Colorado SB 24-205 — Effective: July 1, 2026
Your app uses AI for: employment screening ✓
Required disclosure: MISSING ❌
Human review option: MISSING ❌
Risk assessment: MISSING ❌
Colorado Attorney General can issue:
- Civil penalties: $20,000 per violation
- Injunctive relief: immediate shutdown order
- Private right of action: users can sue directlyWhat's Happening
Your app uses AI for employment screening, credit decisions, healthcare recommendations, or educational assessment — and has no user-facing disclosure that AI is involved.
Root Cause
Colorado SB 24-205 (effective July 1, 2026) requires developers of 'high-risk AI systems' to disclose AI involvement, provide human review options, and publish risk management policies. Most apps built before July 2026 have none of these.
Quick Diagnosis Checklist
Run through these steps to confirm this is your issue:
Does your app use AI to screen job applications, assess creditworthiness, or influence healthcare?
Is there any user-facing disclosure that an AI system is involved?
Can users request a human review of AI-driven decisions?
Is there a published risk management policy on your website?
Do you have a bias audit scheduled at least annually?
The Permanent Fix
Add a jurisdiction-aware AI disclosure component to every page where AI influences consequential decisions. Must include: what AI does, what data it uses, how to request human review.
Drop-In Package That Permanently Fixes This
Instead of building the fix from scratch, use this production-ready package.
// Use anywhere in your Next.js app
import { AIDisclosure } from './AIDisclosure'
export default function ChatPage() {
return (
<div>
{/* Automatically shows correct disclosure for user's jurisdiction */}
<AIDisclosure
modelId="gpt-4o"
decisionType="employment" // triggers high-risk disclosure
allowOptOut={true}
onOptOut={() => router.push('/human-review')}
/>
<ChatInterface />
</div>
)
}