# HB 26-1263: Conversational Artificial Intelligence Service Operator Requirements (Chatbot Safety Act)

Source: https://www.bankingnewsai.com/ai-regulation/documents/co-hb26-1263
Last updated: Aug 26, 2026

HB 26-1263, signed May 29, 2026, took effect August 12, 2026; from January 1, 2027 it requires operators of publicly accessible conversational AI services to disclose that users are interacting with AI, maintain protocols for users expressing suicidal ideation, estimate user age and apply safeguards for minors, refrain from presenting AI output as coming from a licensed professional, and, from July 1, 2027, report annually to the Colorado Attorney General. The AG's August 11, 2026 proposed rules implement it alongside the ADMT Act.

## At a glance

| Field | Value |
| --- | --- |
| Authority | [Colorado AI Act](https://www.bankingnewsai.com/ai-regulation/colorado-ai-act) |
| Type | Statute |
| Status | Final · applies from Jan 1, 2027 |
| Published | May 29, 2026 |
| Effective | Jan 1, 2027 |
| Applies to | Operators of conversational AI services accessible to the public in Colorado, including bank customer-service chatbots |
| Official text | https://leg.colorado.gov/bills/hb26-1263 |

## Key points

- Signed May 29, 2026 (bill history: Governor Signed); the act took effect August 12, 2026, and its operator duties apply from January 1, 2027 (annual reporting from July 1, 2027); implemented through the same AG rulemaking as SB 26-189
- All operators must clearly disclose that the service uses artificial intelligence
- Operators must implement protocols for detecting and responding to expressions of suicidal ideation or self-harm
- Age estimation required; for minors, engagement-maximizing rewards and sexually explicit content are prohibited and privacy-management tools must be provided
- Prohibits misrepresenting AI outputs as advice from a licensed professional
- Annual reporting to the Colorado Attorney General from July 1, 2027

## What changed for banks

It adds a second Colorado AI statute that reaches banks through their customer-facing chatbots and virtual assistants rather than through credit decisions. Disclosure that a customer is talking to AI, crisis-response protocols, and the bar on implying licensed-professional advice all bear directly on retail-banking assistants deployed to Colorado customers.

## Use cases it governs

- [Customer-facing chatbots](https://www.bankingnewsai.com/ai-regulation/by-use-case#customer-chatbots)
- [Generative & agentic AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#generative-agentic-ai)
- [AI governance (general)](https://www.bankingnewsai.com/ai-regulation/by-use-case#governance-general)

## FAQ

### Does Colorado's Chatbot Safety Act apply to a bank's customer-service chatbot?

If the chatbot is a conversational AI service accessible to the public in Colorado, yes: the operator must disclose that it is AI, maintain crisis-response protocols, and meet the age-related duties from January 1, 2027, with annual reporting from July 1, 2027.

## Related documents

- [Colorado AG proposed ADMT rules](https://www.bankingnewsai.com/ai-regulation/documents/co-ag-admt-proposed-rules-2026) — Proposed Automated Decision-Making Technology and Conversational AI Service Rules (Notice of Rulemaking Hearing) (Aug 11, 2026)
- [SB 26-189](https://www.bankingnewsai.com/ai-regulation/documents/co-sb26-189) — Automated Decision-Making Technology Act (repeal and reenactment of the Colorado AI Act) (May 14, 2026)
- [SB 25B-004](https://www.bankingnewsai.com/ai-regulation/documents/co-sb25b-004) — Artificial Intelligence Consumer Protections — delay of effective date to June 30, 2026 (Aug 28, 2025)
- [SB 24-205](https://www.bankingnewsai.com/ai-regulation/documents/co-sb24-205) — Consumer Protections for Artificial Intelligence (Colorado Artificial Intelligence Act) (May 17, 2024)
- [Colorado SB 21-169 and Regulation 10-1-1](https://www.bankingnewsai.com/ai-regulation/documents/co-sb21-169) — Protecting Consumers from Unfair Discrimination in Insurance Practices (SB21-169, C.R.S. § 10-3-1104.9) and Colorado Insurance Regulation 10-1-1 (3 CCR 702-10) (Jul 6, 2021)
- [AB 1609](https://www.bankingnewsai.com/ai-regulation/documents/ca-ab-1609-2026) — Customer Service Chatbots (Right to Human Customer Service Act) (Sep 28, 2026)
- [Regulation (EU) 2026/1744 (Digital Omnibus on AI)](https://www.bankingnewsai.com/ai-regulation/documents/eu-digital-omnibus-ai-regulation-2026-1744) — Regulation (EU) 2026/1744 amending Regulation (EU) 2024/1689 as regards the simplification of the implementation of harmonised rules on artificial intelligence (Digital Omnibus on AI) (Jul 24, 2026)
- [Commission guidelines on AI Act Article 50 transparency](https://www.bankingnewsai.com/ai-regulation/documents/eu-commission-guidelines-ai-act-article-50-transparency-2026) — Commission Guidelines on the implementation of the transparency obligations for certain AI systems under Article 50 of Regulation (EU) 2024/1689 (AI Act) (Jul 20, 2026)

Last reviewed Aug 26, 2026. Cite the official text (https://leg.colorado.gov/bills/hb26-1263) for the rule and this page for the summary and dates.

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