Colorado Governor Signs Law Replacing AI Anti-Discrimination Framework

Jared Polis, Governor of Colorado, signed Senate Bill 26-189 on May 14, 2026, repealing the state's original 2024 Anti-Discrimination in AI Law before it could take effect on June 30. The new legislation replaces a broad "high-risk artificial intelligence system" framework with a narrower regime targeting automated decision-making technology (ADMT) used in consequential decisions affecting employment, education, healthcare, housing, and insurance.

Effective January 1, 2027, the revised law shifts regulatory focus from front-end impact assessments and a formal duty of care to transparency and disclosure requirements. Employers using ADMT to materially influence hiring, promotion, compensation, and performance management decisions must provide advance notice to individuals, maintain records for at least three years, offer plain-language explanations for adverse decisions within 30 days, and allow correction of inaccurate data and human review. The legislation eliminates several onerous requirements from the previous law, including mandatory risk management programs and annual impact assessments.

Enforcement is centralized under the Colorado Attorney General, who will provide a 60-day right to cure for violations until January 1, 2030. The law also introduces a fault-based liability framework for discrimination and prohibits parties from using indemnification contracts to shield themselves from anti-discrimination obligations. The Colorado General Assembly passed the bill to revise the state's AI governance approach, and the Attorney General holds exclusive enforcement authority and responsibility for adopting implementing rules.