What's Happening?
Colorado has enacted a revised version of its artificial intelligence governance law, now referred to as the Revised CO AI Act. This new legislation, signed by the Governor on May 14, 2026, and set to take effect on January 1, 2027, replaces the previous
AI Act. The revised law shifts focus from 'high-risk artificial intelligence systems' to 'automated decision-making technology' (ADMT), which processes personal data to influence consequential decisions. These decisions can affect access to education, employment, housing, and other critical services. The Revised CO AI Act introduces new obligations for developers and deployers of ADMTs, including providing consumers with the right to request a meaningful human review of adverse decisions influenced by such technologies.
Why It's Important?
The Revised CO AI Act represents a significant shift in how state-level AI regulation is approached, moving away from broad AI governance to more specific oversight of automated decision-making technologies. This change is crucial as it aligns with growing concerns about algorithmic bias and the need for transparency in AI systems that impact critical aspects of individuals' lives. By focusing on ADMTs, the law aims to protect consumers while balancing the regulatory burden on businesses. This development could set a precedent for other states considering similar legislation, potentially influencing national standards for AI governance.
What's Next?
As the Revised CO AI Act is set to take effect in 2027, businesses and developers involved with ADMTs will need to prepare for compliance with the new requirements. This includes ensuring transparency and providing consumers with the ability to request human reviews of decisions. The Colorado Attorney General is expected to adopt specific rules by January 1, 2027, which will further clarify the obligations under the law. Companies operating in multiple states may need to adjust their compliance strategies to accommodate varying state regulations on AI and ADMTs.
