Colorado Rewrites Its AI Law | Snell & Wilmer

Colorado replaced the 2024 Colorado Artificial Intelligence Act (SB 205) with a narrower notice-and-transparency framework for automated decision-making technology (ADMT) through SB 26-189, which takes effect on January 1, 2027.
The new law centers on consumer rights including notice, explanation, data correction, and human review for ADMT, omitting broader governance requirements.
Enforcement of the law rests exclusively with the Colorado Attorney General and compliance does not immunize businesses from other anti-discrimination laws.
ADMT is defined as technology that processes personal data to make or influence consequential decisions in areas like employment, lending, healthcare, housing, insurance, and government services.
The law’s effective date is contingent on the Attorney General’s completion of rulemaking, which will finalize key definitions, and on pending litigation.
Businesses should act now to identify ADMT systems, prepare compliance disclosures, review AI vendor agreements for indemnification, and monitor regulatory processes.

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