Colorado enacted the first comprehensive state AI law (SB 24-205) in 2024, then dismantled it before it ever bound anyone. A 2025 special-session bill (SB 25B-004) delayed the start date, and SB 26-189, signed May 14, 2026, repealed and reenacted the whole framework. The replacement drops the EU-style duty of care for a leaner transparency regime that takes effect January 1, 2027. The 2026 session also produced the Chatbot Safety Act (HB 26-1263), signed May 29, 2026, which requires conversational AI systems to disclose they are not human and adds protections for minors, while Governor Polis vetoed an algorithmic pricing and wage-setting bill (HB 26-1210) on June 2, 2026 as overly broad. As of October 2026, the Attorney General is finalizing implementing rules (4 CCR 904-6) covering both the ADMT and chatbot laws, with a formal rulemaking hearing set for October 26, 2026.
Full Colorado AI law breakdown →Colorado AI Act (Original)
First comprehensive state AI law in the US. Required developers and deployers of high-risk AI systems to use reasonable care to protect consumers from algorithmic discrimination. Repealed and replaced by SB 26-189 before its obligations ever took effect.
Key Provisions
- Risk management policy aligned to NIST AI RMF
- Annual impact assessments
- Consumer disclosure requirements
- Algorithmic discrimination protection
- 90-day incident response obligation
- 3-year record retention requirement
Colorado AI Act Replacement (ADMT Framework)
Repeals and reenacts the original Colorado AI Act (SB 24-205) with a narrower Automated Decision-Making Technology framework. Signed by Governor Polis on May 14, 2026. Effective January 1, 2027. Drops the duty of care, risk management programs, and impact assessments in favor of developer documentation duties and consumer notice and human-review rights. The Attorney General opened rulemaking (4 CCR 904-6) in August 2026, with a formal hearing set for October 26, 2026.
Key Provisions
- Repeals and reenacts SB 24-205 before its obligations ever took effect
- Scope narrowed to automated decision-making technology that materially influences a consequential decision
- Developer documentation duties begin January 1, 2027
- Consumer notice at point of interaction plus plain-language explanation within 30 days of an adverse decision
- Consumer rights to data access, correction, and meaningful human review
- Attorney General enforcement under the Colorado Consumer Protection Act with a 60-day cure period, no private right of action, penalties up to $20,000 per violation
Colorado Chatbot Safety Act
Signed by Governor Polis on May 29, 2026. Effective January 1, 2027. Requires operators of publicly accessible conversational AI systems to disclose that users are interacting with AI rather than a human, and imposes heightened protections for minors. Enforced by the Attorney General under the Colorado Consumer Protection Act, with penalties up to $20,000 per violation. Implementing rules are being developed alongside SB 26-189 through the interim draft Automated Decision-Making Technology and Conversational Artificial Intelligence Service Rules released October 6, 2026.
Key Provisions
- Operators must disclose that users are interacting with AI rather than a human
- Age estimation and heightened safeguards for minors, including limits on sexually explicit content and simulated emotional dependence
- Required suicide and self-harm response protocols
- Prohibition on presenting chatbot output as equivalent to licensed professional advice
- Attorney General enforcement under the Colorado Consumer Protection Act with penalties up to $20,000 per violation
Prohibit Individualized Pricing and Wage Setting Using Surveillance Data
Vetoed by Governor Polis on June 2, 2026. Would have barred individualized price setting and wage setting based on surveillance data such as biometrics or online behavior, using price or wage setting algorithms, and would have created a private right of action. Polis backed the goal of stopping personalized price gouging but called the scope and definitions overly broad, noting they could reach ordinary discount programs, and pointed to the newly enacted ADMT law as already addressing AI-driven decisions affecting consumers and workers.
Key Provisions
- Would have prohibited individualized price and wage setting based on surveillance data
- Defined surveillance data to include biometrics and online behavioral information
- Would have restricted the use of price or wage setting algorithms
- Would have created a private right of action
- Vetoed June 2, 2026 as overly broad, with the governor citing the existing ADMT framework
Increase Transparency for Algorithmic Systems
Special-session bill signed by Governor Polis on August 28, 2025. Delayed the original Colorado AI Act (SB 24-205) compliance date from February 1, 2026 to June 30, 2026, creating room for the 2026 rewrite that became SB 26-189.
Key Provisions
- Delayed SB 24-205 effective date from February 1, 2026 to June 30, 2026
- Enacted during the 2025 special legislative session
- Bridged the gap to the 2026 regular-session rewrite