On May 14, 2026, Colorado Governor Jared Polis signed a new Colorado AI Act, S.B. 26-189 (the “2026 Act”)1, which repeals and replaces the prior Colorado AI Act, S.B. 24-205, which had passed in 2024 (the “2024 Act”) and was originally scheduled to take effect on June 30, 2026.2 As a result, the 2024 Act will not take effect, and the 2026 Act goes into effect January 1, 2027. This enactment reflects both scrutiny from the federal government3 and Colorado’s governor4 for the 2024 Act’s broad, sweeping AI regulatory framework.
Compared with the 2024 Act, the 2026 Act narrows Colorado’s AI governance framework by removing several broad developer and deployer obligations, including imposing a duty of care on both developers and deployers to avoid algorithmic discrimination, and requiring deployers to implement risk management programs, conduct impact assessments and affirmatively report algorithmic discrimination information to the Colorado Attorney General. In its place, the 2026 Act imposes more tailored obligations, with key exceptions for HIPAA covered entities and business associates, as well as medical devices subject to FDA oversight.
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