Key point: The Colorado legislature passed a bill to replace Colorado’s existing artificial intelligence (AI) law with a more business-friendly regulatory regime focused on disclosures and limited consumer rights but, in doing so, added to the growing complexity of state AI regulation.
On May 12, the Colorado legislature passed SB 189, which repeals and replaces the Colorado AI Act. The bill will next head to Colorado Governor Jared Polis, who is expected to sign it, having been a driving force in the drafting of the bill.
SB 189 removes many of the hallmarks of the Colorado AI Act — such as a duty of care, risk management programs, and impact assessments — in favor of a disclosure-based framework with limited rights in narrow circumstances. That said, the bill’s January 1, 2027, effective date means that it will go into effect — the legislature will not reconvene until January 11, 2027 — thereby ending the uncertainty as to whether a Colorado AI law will go into effect.
The bill is complex, with many intertwined definitions and numerous exceptions. The article below provides an overview of the bill, digging into its many nuances. In addition, on May 18 from 12-1 p.m. ET, David Stauss will be hosting a webinar analyzing the bill. Click here to register.
Although the bill removes and narrows obligations under the existing law, Colorado still will have the most far-reaching legislatively enacted deployer/private sector AI law of any state. Further, the bill’s passage only adds to an increasingly complex state regulatory regime for businesses to navigate when deploying AI systems, including the California Consumer Privacy Act’s risk assessment and automated decision-making technology (ADMT) regulations and, in the employment context, laws in Illinois, New York City, and soon-to-be Connecticut.





