What happened?

On August 28, 2025, Colorado Governor Jared Polis signed Senate Bill (SB) 25B-004, officially delaying the implementation of the Colorado Artificial Intelligence Act (CAIA) from February 1 to June 30, 2026.

Overview:

The delay follows a contentious special legislative session marked by failed compromise efforts and strong industry opposition.

• Lawmakers were unable to agree on amendments to reduce liability and compliance costs, prompting both chambers to pass SB 25B-004 with broad support.

Governor Polis expressed concern over the law’s potential impact on innovation, noting that its complex compliance regime and reporting requirements could deter technological growth and create a fragmented regulatory landscape.

Despite the delay, the law’s core obligations remain unchanged. Businesses must still prepare to:

• Implement risk management plans aligned with nationally recognized frameworks like the NIST AI Risk Management Framework.
• Maintain public disclosures and conduct impact assessments.
• Establish internal processes to report AI-related discrimination within 90 days.

The Attorney General retains authority to issue regulations, though no deadline has been set.

• Organizations are encouraged to begin compliance preparations now to avoid penalties and ensure readiness by the new effective date.

Additional Information:

Originally enacted in 2024 as Senate Bill 24-205, the CAIA is the first comprehensive state law in the U.S. regulating high-risk AI systems used in employment, housing, healthcare, and finance.

The law imposes significant obligations on developers and deployers, including risk impact assessments, bias mitigation, public disclosures, appeal rights, and mandatory reporting to the Attorney General.

Source References

• Colorado SB25B-004 – Increase Transparency for Algorithmic Systems
• Colorado Consumer Protections for Artificial Intelligence Enacted (VensureHR)
• Colorado Governor – Press Release

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