Understanding Impact Assessments

What is an AI Impact Assessment?

An impact assessment evaluates the potential risks and benefits of deploying a high-risk AI system. It is required by the Colorado AI Act (SB 205) and the EU AI Act.

Key Sections

• System Description — What the AI does, its intended purpose, and deployment context
• Risk Analysis — Identified risks including algorithmic discrimination, data bias, and fairness concerns
• Mitigation Measures — Steps taken to reduce identified risks
• Monitoring Plan — Ongoing oversight and performance tracking
• Stakeholder Impact — How the system affects consumers, employees, or other groups

When to Update

Impact assessments must be updated when you make significant changes to an AI system, deploy it in new jurisdictions, or when regulations are updated.