Colorado Resets Its AI Act, Stripping Impact Assessments and Risk Programmes

Governor Polis signed SB 26-189 on 14 May 2026, repealing Colorado's 2024 AI Act weeks before its June 30 effective date and replacing it with a narrower automated decision-making technology (ADMT) framework focused on consequential decisions in seven covered domains: education, employment, housing, financial services, insurance, healthcare, and essential government services. Impact assessments, duty-of-care requirements, and algorithmic-discrimination risk programmes are eliminated; the new framework requires pre-use notice to consumers, plain-language post-adverse-outcome disclosure within 30 days, and an opportunity for human review. General-purpose LLMs not configured for consequential decisions are expressly excluded, and the law takes effect January 1, 2027 — a meaningful compliance reprieve for legal AI deployers operating in Colorado.