SB 26-189, signed on 14 May 2026, repealed the Colorado AI Act (SB 24-205) before it took effect and replaced it. The new law covers technology that uses personal data to score, rank or predict in consequential decisions about education, jobs, housing, lending, insurance, health care and government services.
Deployers must give people advance notice, explain an adverse decision within 30 days, and let them correct their data and ask for meaningful human review. The earlier duty of care, risk programmes and impact assessments were dropped. The Attorney General enforces it, with up to $20,000 per violation, and must adopt implementing rules before 1 January 2027: proposed rules were filed on 11 August 2026 and a public hearing was held on 26 October 2026. Separately, xAI and the US Justice Department are challenging Colorado in federal court; under an agreed order, the state is not enforcing against xAI while that case proceeds.