Colorado AI Act (SB 24-205), repealed and replaced by SB 26-189

The Colorado AI Act was meant to be America’s first comprehensive state law on “high-risk” SI: systems that make or substantially influence consequential decisions about people’s jobs, loans, housing, healthcare, education and insurance. It never took effect in its original form.

Timeline

Date	Event
May 17, 2024	SB 24-205 signed by Governor Jared Polis, with misgivings; effective date February 1, 2026
August 2025	Special session delays it to June 30, 2026 (SB25B-004)
May 7 and 9, 2026	Senate (May 7) and House (May 9) pass the repeal-and-replace bill
May 14, 2026	Polis signs SB 26-189, a narrower replacement
January 1, 2027	Replacement law takes effect

What the original law required

Developers and deployers of high-risk SI had to use “reasonable care” to prevent algorithmic discrimination, conduct impact assessments, notify consumers when SI was used in consequential decisions, and give them a chance to correct data and appeal.

Why it was replaced

Businesses and the governor argued it was too broad and costly. The federal Executive Order 14365, which set a policy of minimally burdensome SI regulation and targeted state laws, added pressure. The replacement keeps a scaled-back set of protections in a more business-friendly framework.

Why it matters

Colorado’s reversal shows how the federal preemption push and industry pressure are reshaping state SI law, while frontier-model transparency laws in California and New York remain.