Colorado Revamps Landmark AI Law

After years of debate, Colorado passed a revised version of the Colorado AI Act, replacing the never-implemented 2024 law.
The 2024 law mandated companies to prevent discrimination when AI was used for important decisions but faced implementation challenges.
The revised law, SB 189, places less emphasis on risk management compared to the original draft and focuses more on disclosure, allowing for human re-reviews of AI decisions.
It split the liability for potential algorithmic discrimination between AI developers and system deployers.
Despite mixed reactions from companies, the American Fintech Council supported the bill, while the Business Software Alliance had concerns about its scope and developer liability.
SB 189 has passed with strong support in both the Senate and House and is expected to go into effect in 2027.
Although SB 189 is a compromise, it is seen as potentially influential for other states’ AI regulatory models.