Colorado Postpones Implementation of Colorado AI Act, SB 24-205
Summary
On August 28, 2025, Colorado Governor Jared Polis signed SB 25B-004, a bill that postpones implementation of the Colorado AI Act. Originally set to take effect on February 1, 2026, the new effective date for the legislation is now June 30, 2026.
The delay follows a special legislative session called by Governor Polis where lawmakers were unable to reach a compromise on amendments to the original law. Governor Polis expressed concerns that the law, in its current form, will impose high costs on State, local governments, and covered businesses.
The Colorado AI Act (originally SB 24-205) is a first-of-its-kind comprehensive state law aimed at regulating the use of “high-risk” AI systems to prevent “algorithmic discrimination.” Modeled in part on the EU AI Act, the law imposes obligations on the “developers” and “deployers” of high-risk AI systems used in consequential decisions.
Key Provisions:
- Duty of Care: Both developers and deployers must use reasonable care to protect consumers from any known or reasonably foreseeable risks of algorithmic discrimination.
- Impact Assessments: Deployers are required to conduct and document impact assessments for any high-risk AI system they use.
- Transparency for Developers: Developers must provide deployers with statements detailing the purpose, intended uses and known risks of their high-risk AI systems. They must also maintain a public website summarizing the types of high-risk systems they have developed and how the developer manages foreseeable risks of algorithmic discrimination.
- Transparency for Deployers: Deployers must notify consumers when a high-risk AI system is used to make a consequential decision about them, including the right to opt out in some cases. They also need to provide information about the purpose of the system, the nature of a consequential decision and the consumer's right to appeal an adverse decision.
- Enforcement: The Colorado Attorney General has exclusive authority to enforce the act.
