Denver, Colorado — The implementation of Colorado’s far-reaching artificial intelligence law has been postponed by roughly five months. Initially slated to take effect on February 1, 2026, the law will now begin on June 30, 2026. The delay follows the signature of several bills by Governor Jared Polis on August 28, which included a measure altering the effective date of the Colorado Artificial Intelligence Act.
This postponement allows state lawmakers another opportunity to modify the law when the regular legislative session resumes in early January 2026. Legal experts from Reed Smith noted that the delay raises questions about whether the legislature can reach a consensus on any amendments. Efforts to amend the law during a previous special legislative session have so far been unsuccessful.
The Colorado Artificial Intelligence Act has ignited substantial debate since its passage. According to the Reed Smith blog, four amendments were proposed during this summer’s special session, underscoring ongoing disagreements about the law’s implications for businesses. Lawmakers in Colorado are also facing pressures from the federal government regarding artificial intelligence regulations.
Amidst this backdrop, the Trump administration has warned that it may withhold federal AI funding from states that impose restrictive regulations on the technology. A recent AI action plan presented by the White House tasks the Office of Management and Budget with ensuring that federal agencies consider a state’s AI regulatory environment when making funding decisions.
The situation escalated further as former President Donald Trump called for a single federal standard governing AI, suggesting it should override state regulations. The U.S. Chamber of Commerce recently reported that nearly 65% of small businesses expressed concerns about the costs of compliance and litigation due to varying state laws on privacy, AI, and technology. This figure is a marked increase from last year, indicating growing uncertainty in the business community.
Analysts highlight that Colorado’s AI law stands out for its extensive requirements. It mandates that businesses implement risk management programs for high-risk AI systems, which include conducting impact assessments, establishing oversight processes, and developing strategies to mitigate risks. A key objective of the law is to address algorithmic discrimination, which could lead to unfair treatment of individuals based on protected characteristics such as age, race, or religion.
Particularly affected by this law will be human resources departments that use AI in hiring processes, a practice that has become widespread across various industries. The delay in the law’s effective date may afford these businesses additional time to prepare compliance strategies and could provide opportunities for amendments if consensus is reached among lawmakers and stakeholders in 2026.
The discussions surrounding the Colorado Artificial Intelligence Act reflect broader national conversations about the future of AI regulation, presenting both challenges and opportunities for businesses as they navigate an evolving legal landscape.
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