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ARTICLE · 02 JULY 2026

Colorado Pares Back Its AI Act

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Colorado's revised AI Act, effective January 2027, transforms the state's approach to artificial intelligence regulation by narrowing the scope of covered systems and eliminating governance requirements while maintaining transparency obligations. The new law focuses on automated decision-making technology used in consequential decisions across seven key domains, establishing consumer rights to data correction and meaningful human review. How will this shift from comprehensive risk management to targeted tra

United StatesStrategy
Andrew Eichen
Andrew Eichen
Alexei Klestoff
Alexei Klestoff

On May 14, 2026, Governor Polis signed SB 26-189 into law, substantially revising the Colorado AI Act originally enacted in 2024.

While the original act never took effect, the law stood as a model in recent years for what comprehensive risk-based regulation of AI governance could look like in the United States. Unlike many other AI laws, the original act applied to developers and deployers of “high-risk” AI Systems and required risk management programs, annual impact assessments, public statements describing AI use, and a notification regime when AI was used to influence certain consequential decisions. In the years since, many other states have enacted their own AI laws, but none thus far have gone as far in imposing the types of governance requirements Colorado’s original law would have required.

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