What happened
Colorado's AI Policy Working Group, comprising consumer advocates and technology groups, released a proposed framework on March 17, 2026, to revise the state's 2024 AI regulations. This third attempt shifts liability for AI discrimination to courts, decided by individual case circumstances. The framework covers AI processing personal information for predictions guiding "consequential decisions" in employment, housing, and healthcare, explicitly excluding consumer tools like large language models. Governor Jared Polis supports the framework, which aims to replace the 2024 regulations taking effect in June 2026.
Why it matters
This framework redefines the risk landscape for AI developers and deployers in Colorado. Procurement teams and legal architects must now prepare for court-determined liability in cases of AI discrimination, moving away from the original law's approach. The proposal's focus on "consequential decisions" and exclusion of consumer tools offers clearer guidance for businesses not operating in sensitive sectors. This follows the 2024 Colorado AI Act (Senate Bill 24-205), which industry figures criticised for imposing broad definitions and reporting requirements.
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