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Guide · Reviewed November 2026 · Not legal advice

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Adverse-Outcome Explanations in Plain Language

The short answer: an adverse-outcome explanation tells a person, in plain words, what the decision was, the main reasons for it, what data the tool used, and what they can do next — correct the data, or ask a person with authority to change the outcome to review it. Colorado requires it within 30 days of the decision. The worked examples below are generated from the ADMT Notice Kit's own document templates and are labelled examples, not real notices.

What does the explanation document actually say?

The kit generates every explanation from the same structure (app/documents.py): a heading, who it is from and to, the dates of the decision and of the explanation, then four sections — what happened, the main reasons, the data the tool used, and what the person can do next — closing with the record-keeping note and the kit's footer. Here is that structure filled in, as an example.

Example document — not a real noticeExplanation
Explanation of a decision From: Example Rentals LLC To: Example Applicant Date of this explanation: [example date] Date of the decision: [example date] What happened Example Rentals LLC made a housing decision that went against you, with help from an automated screening tool. The main reasons for the decision - [Example reason] The rental-history record the tool used showed two late payments in the last 12 months. - [Example reason] The income figure in the application was below the threshold the business set for this property. Data the tool used [Example summary] The application you submitted, the rental-history report, and the income figure you provided. What you can do next - Correct your data. If any data about you is wrong, tell us and we will correct it and look at the decision again. Contact: the contact on this document - Ask for human review. A person with authority to change the outcome can review the decision. Review contact: our review contact About this explanation This explanation is given under Colorado SB 26-189 (automated decision-making technology) (Colorado, in force January 1, 2027). A copy of this explanation, the date it was made, and any review that follows are kept in the Example Rentals LLC decision record for three years. Generated with ADMT Notice Kit by Ingenious AI. ADMT Notice Kit is a templates and records tool, not legal advice. It records what was said and when. It does not judge whether a decision was fair.

The bracketed lines and the two reasons are example content. In a real document the kit inserts the business's own profile (business name, tool name, review and correction contacts), the decision's real dates, and the principal reasons the business entered for that person — or, if none were entered, the document says so rather than inventing reasons.

What does the notice before the decision look like?

The explanation has a companion: the pre-use notice sent before the tool is used. Same kit, same plain-language structure — here in outline, as an example.

Example document — not a real noticePre-use notice
Notice about an automated decision tool From: Example Rentals LLC To: Example Applicant Date: [example date] Example Rentals LLC uses an automated screening tool to help make a housing decision that may affect you. What this means - The tool gives information that a person at Example Rentals LLC reviews. The tool output is one input to the decision. - The decision can affect your access to the opportunity, service, or terms described in the housing process. Your rights in Colorado This notice is given under Colorado SB 26-189 (automated decision-making technology) (Colorado, in force January 1, 2027). - You can ask what data about you the tool used and ask us to correct data that is wrong. To ask for a correction, contact: the contact on this notice - If the decision goes against you, you can ask for a plain language explanation of the main reasons and for review by a person. Review contact: our review contact Questions Contact our review contact with any question about this notice. Generated with ADMT Notice Kit by Ingenious AI. ADMT Notice Kit is a templates and records tool, not legal advice. It records what was said and when. It does not judge whether a decision was fair.

The duty behind each document — which states require it and from when — is laid out in Colorado AI Act Automated Decision Notices: What to Send, and every date is collected on the ADMT deadline tracker.

How do you write one that a person can act on?

Generate a real pre-use notice — free  Check your duties first

More from Ingenious AI: the hub maps the whole fleet.

Frequently asked questions

What is an adverse-outcome explanation?

A plain-language statement sent after an automated or automated-assisted decision goes against a person. In Colorado it states the principal reasons for the outcome and the tool's role, and it is due within 30 days of the decision.

What should a plain-language explanation include?

What happened, the main reasons for the decision, the data the tool used, and what the person can do next: correct their data and ask for human review by a person with authority to change the outcome — with named contacts for both.

Are the examples on this page real notices?

No. They are worked examples, labelled as examples, generated from the ADMT Notice Kit's own document templates with example names and example reasons, so you can see the exact structure the kit produces.

What makes an explanation 'plain language'?

Short sentences a non-lawyer can act on: the reasons named concretely, the data summarized honestly, and the next steps stated as actions with a contact — not a legal citation or a restatement of the tool's output.

Does every state set a 30-day explanation deadline?

No. The 30-day clock is Colorado's (SB 26-189). The kit's data states no fixed day count for California or Connecticut explanations, so the kit shows those decisions as 'no fixed clock' rather than inventing one.

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