Colorado replaced its AI Act before it took effect. Here is the new law.

In short: Colorado’s SB 26-189, signed on May 14, 2026, repeals the never-enforced 2024 AI Act and replaces it, from January 1, 2027, with a narrower law for automated decision-making technology in consequential decisions. Developers must document their systems for deployers; deployers must give notice, explain adverse outcomes, and offer correction and human review. Impact assessments and the statutory duty to prevent algorithmic discrimination are gone.¹

Colorado’s 2024 AI Act (SB 24-205) was a broad state law aimed at algorithmic discrimination in consequential decisions. Its start date had already moved to June 30, 2026. On April 9 xAI challenged it in federal court, on April 24 the US Department of Justice moved to intervene in support, arguing that requiring companies to prevent unintended disparate impact violates the Equal Protection Clause,² and on April 27 a magistrate judge entered a stipulated order pausing enforcement. On May 14 the governor signed SB 26-189, which repeals and re-enacts the framework in a narrower form from January 1, 2027.¹ This briefing is educational, not legal advice.