The Colorado General Assembly recently concluded its 2025 legislative session without making amendments to Senate Bill 24-205, known as the Colorado AI Act (CAIA). Signed into law by Governor Jared Polis on May 17, 2024, the CAIA is scheduled to take effect on February 1, 2026. As one of the most comprehensive state-level frameworks for artificial intelligence governance in the United States, the law establishes requirements for AI developers and deployers to prevent algorithmic discrimination, particularly in high-stakes areas such as employment, healthcare, housing, and finance. It mandates risk management, impact assessments, and notifications to consumers when AI is used in consequential decision-making.
Throughout the 2025 session, lawmakers, industry groups, and community stakeholders engaged in extensive debate over the scope and implementation of the CAIA. A bipartisan working group introduced Senate Bill 318, which sought to delay the law’s effective date to January 1, 2027, clarify definitions related to high-risk systems and algorithmic discrimination, and propose exemptions for certain technologies. Despite these efforts, the bill was postponed indefinitely due to lack of consensus among legislators and stakeholders.
In the wake of the legislative impasse, a coalition of technology companies and business associations, including the Colorado Technology Association and the Colorado Independent AI Coalition, have intensified lobbying efforts. These groups are urging Governor Polis to convene a special legislative session to reconsider the CAIA’s timeline and requirements. Governor Polis, along with Attorney General Phil Weiser and Senate Majority Leader Robert Rodriguez, has publicly supported the idea of extending the law’s implementation period to allow for further stakeholder engagement and policy refinement. In his signing statement, Governor Polis emphasized the importance of balancing technological advancement with robust consumer protections and acknowledged the need for ongoing adjustments to the law.
With the CAIA’s effective date less than a year away, organizations that develop or deploy high-risk AI systems in Colorado face a rapidly approaching compliance deadline. The law requires companies to conduct algorithmic impact assessments, implement risk management processes, provide consumer notifications, and establish mechanisms for individuals to appeal or seek explanations for AI-driven decisions. These requirements are particularly relevant for legal, compliance, and technology professionals, as they align with emerging best practices in information governance, transparency, and auditability.
Colorado’s approach to AI regulation is attracting national and international attention. Policymakers in other states are monitoring the CAIA as a potential model for state-level AI governance, while federal discussions around comprehensive AI legislation continue to evolve. The experience in Colorado highlights the ongoing challenge of balancing innovation with consumer protection, a tension that is also evident in international frameworks such as the European Union’s AI Act.
As the debate over the CAIA’s future continues, Colorado stands at a pivotal juncture. Whether through a special legislative session or future amendments, the state’s approach to AI governance will influence not only local compliance strategies but also broader national conversations about responsible AI deployment. Organizations operating in high-risk AI sectors are advised to stay informed, begin compliance preparations, and closely monitor legislative developments as the state moves toward the law’s scheduled implementation in February 2026.
News Sources
- Colorado’s Landmark AI Law Still on Track for 2026, But Push to Delay Continues – What Should Employers Do? (Fisher Phillips)
- Lawmakers make no revisions to artificial intelligence law (The Center Square)
- Will Colorado’s Historic AI Law Go Live in 2026? Its Fate Hangs in the Balance in 2025 (Epstein Becker & Green)
- Attempt to change or delay Colorado’s controversial AI law killed
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Source: HaystackID published with permission from ComplexDiscovery OÜ
