AI Disclosure
The requirement to inform consumers when an AI system has materially contributed to a decision that affects them.
AI disclosure is the requirement to inform consumers when an AI system has materially contributed to a decision that affects them. Colorado SB 26-189 requires developers and deployers of high-risk automated decision systems to disclose AI use to consumers.
Disclosure obligations are not uniform. Some laws require only that AI was used. Others require an explanation of the decision, the data considered, or the right to appeal. In insurance, the challenge is to provide meaningful notice without overwhelming consumers with technical detail.
AI disclosure is closely tied to consumer recourse. A consumer cannot appeal a decision they do not know was AI-influenced. Carriers should design disclosure notices that are clear, timely, and aligned with the appeal process. See our glossary entries on Colorado SB 26-189, consumer recourse, and automated decision systems.