Governor Jared Polis Signs Revised Colorado AI Law

Governor Jared Polis signed Senate Bill 26-189 into law on May 14, 2026, repealing and replacing the 2024 Colorado Artificial Intelligence Act. The new legislation shifts the state's regulatory approach from a prescriptive, risk-based model aimed at preventing algorithmic discrimination to a transparency-based regime focused on Automated Decision-Making Technology (ADMT). This shift follows constitutional challenges to the original law's diversity, equity, and inclusion provisions by the United States Department of Justice and xAI.

Effective January 1, 2027, the law targets ADMT that materially influences consequential decisions in domains such as healthcare, employment, education, housing, and financial services. The revised framework eliminates requirements for formal risk management programs, bias audits, and annual impact assessments. Instead, it mandates a multistage notice system: deployers must provide pre-decision notices and deliver plain-language explanations of adverse outcomes within 30 days. Consumers are granted the right to correct personal data and request meaningful human reviews of decisions where commercially reasonable.

Enforcement authority is vested exclusively in the Colorado Attorney General, who will treat violations as deceptive trade practices under the Colorado Consumer Protection Act. The law does not create a private right of action, though existing anti-discrimination laws remain applicable. To facilitate compliance, the Attorney General will provide a 60-day cure period for non-repeated violations until January 1, 2030. The law applies to Colorado residents and individuals whose opportunities within the state are evaluated by businesses operating there.