Artificial intelligence has become embedded in business operations across industries, and manufacturing is no exception.
On June 30, 2026, Colorado’s new AI legislation will take effect, focusing primarily on high-risk AI systems that affect individuals in areas like employment, housing, lending, healthcare, and education.
While our work generally falls outside the primary scope of this policy, certain principles impact our business, including:
- Transparency
- Documentation
- Risk management
As AI has become integral to our operations here at Reata, it’s important for our team to ensure compliance with our local and state legislation and keep our customers informed along the way. Here’s some information about this law and what it means for us going forward.
Understanding the Scope of Colorado’s AI Law
This legislation targets AI systems that make “consequential decisions” affecting people’s lives. For instance, systems used in hiring, loan approvals, insurance underwriting, or education placement must undergo impact assessments and risk disclosures to prevent discrimination or bias.
For manufacturers like Reata, the most relevant provisions center around:
- Transparency when individuals interact with AI
- Disclosure of risks and data usage
- Ongoing impact assessments
In short, if someone is interacting with AI, they must be aware of it, and companies must manage risks proactively.
How Reata Uses AI in Our Manufacturing Operations
AI as a tool, not a replacement
In our fast-paced machine shop environment, speed and clarity matter. That’s why, at Reata, AI supports our internal workflows, helping streamline quoting, purchasing, scheduling, and vendor communications. AI helps us reduce delays, improve responsiveness, and manage data more effectively.
However, AI is not our customer service strategy. Our human team remains at the heart of everything we do; AI simply amplifies what they’re capable of.
If a vendor interacts with an AI-driven communication tool, they will be made aware. And if they prefer speaking directly with a person, they can always call and connect with our team.
Humans stay in the loop
Even when AI systems handle repetitive tasks, humans oversee every process. If an AI encounters something outside its scope, such as an unusual request or a complex clarification, it is designed to alert our team and prompt them to step in.
For example, AI can analyze a production order, evaluate a vendor’s purchase order timeline, and flag potential risks before they impact a customer’s delivery. But the final decision-making authority remains human.
AI Transparency, Security, and Compliance
The new law requires disclosure when AI interacts with people. We understand that transparency builds trust; trust is foundational in the complex industries we support, such as medical machining, where communication and documentation are critical.
Additionally, security remains a non-negotiable in our operations. Any customer documentation processed through AI-enabled systems is routed through secure cloud environments. No Controlled Unclassified Information (CUI) or sensitive customer data is exposed to unsecured systems. Protecting customer data is just as important as protecting dimensional tolerances at our Colorado machine shop.
What This Means for Your Parts
Faster communication and fewer bottlenecks
AI allows us to respond more quickly to vendor updates and scheduling adjustments. In high-mix environments involving complex machining, reducing administrative friction directly impacts lead time.
If a vendor is comfortable interacting with AI support tools, they may prefer the instant updates and real-time visibility they offer. If not, our human team is always available to help!
Smarter risk awareness
As AI tools improve year after year, their ability to synthesize information across systems increases. When integrated with ERP, scheduling, quoting, and purchasing platforms, AI can identify potential production risks before they affect customers.
This proactive approach supports stronger execution across our engineering and manufacturing services.
The Future of AI in Manufacturing
The reality is simple: AI adoption will continue accelerating. States like Colorado are working to ensure it’s deployed responsibly, and we are following suit.
As the regulatory landscape evolves, so will we, always with our customers’ security and success in mind.
Request a quote from Reata to get started on your next project!