Colorado Enacts Simplified Artificial Intelligence Regulation
Colorado Enacts Simplified Artificial Intelligence Regulation
https://natlawreview.com/article/colorado-repeals-and-replaces-colorado-ai-act
Publish Date: 2026-05-28 12:48:00
Source Domain: natlawreview.com
- Signing into Law: On May 14, 2026, Gov. Jared Polis signed into law the Colorado Automated Decision-Making Technology in Consequential Decisions Act (Colorado AI Act), which repeals the prior 2024 Colorado AI Act.
- Effective Date: The new law will take effect on January 1, 2027, with the Attorney General required to publish additional rules to clarify disclosure obligations by that time.
- Scope of Coverage: The law applies to ADMTs (Automated Decision-Making Technologies) that influence “Consequential Decisions” affecting consumer’s eligibility or terms across domains like education, employment, real estate, financial services, insurance, healthcare, and essential government services.
- Exclusions: Certain technologies, such as non-machine learned spreadsheets and personal information-providing tools not intended for use in consequential decisions, are excluded from the ADMT definition.
- Compliance Obligations: Developers must provide detailed documentation and notices to deployers, while deployers must ensure consumer notice prior to using ADMTs for consequential decisions and retain compliance records with details in case of an adverse outcome.
- Consumer Rights: Consumers impacted by an adverse outcome from an ADMT decision can request corrections to inaccurate data and have the right to meaningful human review and reconsideration.
- Liability: Developers and deployers share liability for unlawful discrimination claims, but only to the extent of their respective fault and not for misuses by deployers that were not intended by developers.
- Enforcement: The law will be enforced by the Colorado Attorney General without establishing a private right of action, considering violations as deceptive trade practices. Organizations should prepare for assessments, documentation, training, and process evaluation pre-effective date.
