Colorado's landmark artificial intelligence law, the most comprehensive in the country, has been replaced before it ever took effect.
After years of concern over the implications of Colorado's Concerning Consumer Protections in Interactions with AI Systems law, which was set to take effect on June 30, Gov. Jared Polis recently signed into law S.B. 26-189, a bill that repealed the Colorado AI law and replaced its broad "high-risk artificial intelligence system" framework with a narrower regime focused on automated decision-making technology, or ADMT, used in consequential decisions.
S.B. 26-189 will apply to job applicants and employees who are residents of Colorado, in addition to "any individual whose access to, eligibility for, or opportunity in Colorado is evaluated in a consequential decision by a person doing business in Colorado."
The Colorado AI law has been a source of concern for employers since it was enacted in 2024. Had the law gone into effect without changes, it would have imposed a host of onerous requirements on employers, including implementation of risk management programs, impact assessments, annual reviews and disclosures regarding algorithmic discrimination.
S.B. 26-189 will eliminate many of these requirements and impose a far narrower framework focused on transparency, notice, disclosure, recordkeeping, and human review and reconsideration.
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