What happened
Colorado's 2024 AI Act was due to take effect on 30 June 2026. On 14 May 2026 the governor signed SB 26-189, which repeals and replaces it with a narrower law focused on automated decision-making technology. The new law applies from 1 January 2027, and the Attorney General must complete implementing rules before then.
The new law moves away from the original duty to manage algorithmic discrimination risk. Instead it centres on notice and disclosure, and gives consumers rights after an adverse decision, including correcting their data and asking for human review.
What it means for you
If an agent or model helps decide who gets a job, a loan, a lease, insurance or care for people in Colorado, you need to tell them, explain adverse outcomes and offer a human review route. Vendors and the companies deploying their tools share responsibility, so contracts need updating too.
What to do this quarter
- Find every AI-assisted decision that affects Colorado residents in hiring, credit, housing, insurance or healthcare.
- Draft the notice and adverse-outcome explanation, and set up a human review route.
- Update vendor contracts to cover shared obligations and records.
Sources
This update is general information, not legal advice. Check how it applies to you with your legal team.
