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Colorado Narrows AI Law and Replaces 2024 Rules With Decision-Focused Framework

The bill limits regulation to automated decision-making tools that materially affect consequential choices and leaves key definitions and enforcement to the Colorado attorney general to clarify.

Overview

  • Governor Jared Polis signed SB 26-189 on May 14, 2026, repealing the 2024 Colorado Anti-Discrimination in AI Law and setting the new statute to take effect January 1, 2027.
  • SB 26-189 targets automated decision-making technology, or ADMT, which the law defines as systems that process personal data to produce outputs like predictions, scores, recommendations, ranks, or classifications used to make or guide decisions about people.
  • The law applies only when an ADMT 'materially influences' consequential decisions, a term the statute defines as the ADMT output being a non-de minimis factor that constrains, ranks, scores, recommends, classifies, or otherwise meaningfully alters the outcome.
  • Covered deployers must give clear notice of ADMT use, provide a plain-language explanation within 30 days after an adverse decision, retain records for three years, allow correction of inaccurate data, and offer meaningful human review where commercially reasonable, so employers and vendors should inventory tools and start building notices, logs, and review processes now.
  • The rewrite removes the earlier law’s broad system-level mandates, concentrates enforcement in the attorney general’s office, leaves several practical tests fact-specific, and may push companies to change tool use or apply the new requirements uniformly to reduce legal risk.