Colorado Delays Comprehensive AI Law With Further Changes Anticipated

Implementation of Colorado's Artificial Intelligence Act (SB 24-205) has been delayed five months to June 30, 2026, as a result of amendments Gov. Jared Polis signed on Aug. 28, 2025 (SB25B-004). This change from the original Feb. 1, 2026, effective date results from extensive negotiations during the state's recently concluded special legislative session.

The delay intends to give Colorado lawmakers more time to consider substantive amendments during the 2026 regular legislative session, starting in early January 2026. Though the legislature has considered changes since Gov. Polis signed the law in May 2024, there was no agreement on any substantive changes during either the regular 2025 session or the August 2025 special session. It remains to be seen whether the legislature can reach consensus, as stakeholders have strongly debated changes for more than a year.

Even if the legislature agrees to substantive amendments next spring, there will be little time between the session's scheduled adjournment in May 2026 and the current June 30, 2026, effective date for the attorney general's office to promulgate rules and for employers to prepare for compliance with updated requirements unless the legislature also agrees to further changes to the law's implementation date.

Practical Considerations

The extended June 30, 2026, effective date gives businesses more time to assess and develop their compliance strategy, while leaving open the possibility that some of the law's stringent compliance requirements may be refined or removed entirely. Covered employers may want to continue monitoring developments during the next legislative session (January to May 2026) for further amendments.

If the law becomes effective, its biggest impact may be on employers that have integrated AI tools into hiring and related employment processes, a practice that has permeated many industries. Employers may want to consider advance planning that addresses how the benefits of AI tools can be balanced with the state's forthcoming extensive compliance requirements.