News Colorado AI Act Working Group Revision 2026
Colorado's AI Policy Working Group released a framework on March 17, 2026, proposing a comprehensive rewrite of the Colorado AI Act (SB 24-205) that would shift from a risk-based regulatory model to a disclosure-driven approach focused on transparency and consumer notice.[1][2][3]
Background
Colorado's SB 24-205, signed in 2024, was the first comprehensive state AI law in the nation, originally scheduled to take effect February 1, 2026. SB 25B-004 (signed August 28, 2025) delayed implementation to June 30, 2026.[4] Earlier replacement attempt SB 25-318 was abandoned.[5]
Proposed Changes
The working group's framework, developed through negotiations involving businesses, hospitals, consumer groups, and tech advocates, proposes fundamental changes:[6]
Scope Narrowing
The proposal narrows coverage to automated tools that "materially influence" meaningful decisions, rather than all "high-risk AI" systems.[2]
Compliance Shift
Moves from pre-use compliance burdens to a framework emphasizing post-adverse decision disclosures and meaningful human review.[2]
Provisions Removed
The framework eliminates several key elements:
- Duty of Care: The requirement to use "reasonable care" to protect consumers from algorithmic discrimination
- Impact Assessments: Annual impact assessment obligations
- Risk Management Programs: Requirements to maintain risk-management programs
- Algorithmic Discrimination Standards: All references to algorithmic discrimination, leaving such issues to existing anti-discrimination laws[2][1]
Provisions Retained
- Consumer notice requirements
- Adverse outcome disclosure obligations
- Human review provisions
- Records retention requirements[6]
Enhanced Accountability
Developer and deployer liability is clarified to establish clear responsibility, addressing concerns about vague enforcement mechanisms.[3]
Timeline and Legislative Outlook
- March 17, 2026: Working group releases framework proposal[3]
- May 13, 2026: Colorado General Assembly session ends
- June 30, 2026: Original SB 24-205 takes effect if no replacement is enacted[4]
- January 1, 2027: Proposed effective date if replacement passes, potentially creating a compliance gap[6]
As of late April 2026, the framework has not been formally introduced as a numbered bill, and with the legislative session ending May 13, time is running short for passage.[1]
Separate Healthcare AI Bills
Separate 2026 healthcare AI bills (HB 26-1139 and HB 26-1195) address distinct issues and would proceed independently of the SB 24-205 replacement.[6]
Significance
The Colorado AI Act revision is significant because it:
- Would gut the nation's first comprehensive state AI law before it takes effect
- Reflects a major shift from risk-based to disclosure-based AI regulation
- Could create a compliance gap between the June 30, 2026 SB 24-205 effective date and the January 1, 2027 proposed replacement date
- May set a precedent for other states considering similar rollbacks to AI regulation
- Is racing against a May 13 legislative adjournment deadline
See Also
References
- ↑ 1.0 1.1 1.2 Law Week Colorado, New Draft Poised to Replace Colorado AI Act
- ↑ 2.0 2.1 2.2 2.3 Shook Hardy & Bacon, Revamped Colorado AI Act Proposed
- ↑ 3.0 3.1 3.2 Colorado Politics, AI Working Group Agrees on Framework to Replace Colorado Law
- ↑ 4.0 4.1 Akin Gump, Colorado Postpones Implementation of Colorado AI Act
- ↑ Health Law Advisor, Will Colorado's Historic AI Law Go Live in 2026?
- ↑ 6.0 6.1 6.2 6.3 Squire Patton Boggs, Preparing for the Convergence of Three New Colorado Laws Targeting AI in Healthcare