AI
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Bill passed
House 57-6, Senate 34-1 — awaiting Governor Polis's signature
Enforcement delayed
Start date pushed from June 2026 to January 2027
Lighter requirements
Disclosure mandates replaced with notification and right to appeal
After two years of contentious debate, Colorado lawmakers passed Senate Bill 189 on 12 May 2026 — a bill that repeals and replaces the state's original 2024 AI Act with significantly scaled-back requirements and a delayed enforcement date.12
Colorado's 2024 AI Act required companies, governments, and other organisations developing or deploying AI to disclose how their systems help make consequential decisions — such as those affecting hiring, loans, or housing.34 Senate Bill 189 replaces that disclosure requirement with a simpler obligation: notify consumers when AI is being used to make a consequential decision about them, and give them an opportunity to appeal.23
The original Act had been set to come into effect on 30 June 2026. SB 189 pushes that start date back to January 2027.45
The bill passed with broad bipartisan backing — 57-6 in the House and 34-1 in the Senate.2 The measure now heads to Governor Jared Polis, who has said he will sign it into law.3
The Colorado Sun described the outcome as the end of a fierce two-year fight over AI regulation, concluding with a watered-down law.1 Critics of the original legislation argued that extensive disclosure requirements placed undue burdens on businesses and risked driving AI companies out of the state.7 Advocates for stronger rules argued the rewrite weakened consumer protections at a critical moment in AI governance.6
Colorado's rewrite comes as states across the US grapple with how aggressively to regulate AI, amid pressure from the federal government to stand down.8 The White House released a National Policy Framework for AI in March 2026 that called on Congress to preempt state AI laws it deemed to impose undue burdens on innovation.89
California's Transparency in Frontier AI Act remains one of the most stringent state-level frameworks, while New York's Governor signed amendments to the state's RAISE Act in March 2026, shifting it toward a transparency and reporting-based model.10
Apple is working on a framework to allow autonomous AI agents into the App Store while preserving its privacy and security standards — a move that could unlock a new category of iPhone software ahead of WWDC in June.
SpaceXAI — formed when SpaceX acquired xAI in February 2026 at a combined $1.25 trillion valuation — has been losing staff since the merger, with roughly half of xAI's co-founders already departed.
Cisco posted record Q3 revenue of $15.84 billion and raised its full-year AI order forecast to $9 billion as AI infrastructure demand accelerates — though it is simultaneously cutting nearly 4,000 jobs.
Anthropic has launched Claude for Small Business, embedding 15 AI workflows directly into QuickBooks, PayPal, HubSpot, and four other tools small businesses already use — with no extra charge beyond existing subscriptions.
Colorado AI Act (SB 24-205)
Colorado's original 2024 artificial intelligence law — the first of its kind in the US — requiring companies to disclose how AI systems make consequential decisions. It is now being repealed and replaced by SB 189.
Consequential decision
In AI regulation, a decision significantly affecting a person's life — such as employment, loan approvals, housing, or healthcare — that triggers consumer protection requirements.
SB 189
Colorado Senate Bill 189, passed 12 May 2026, which replaces the original Colorado AI Act with lighter notification and appeal requirements and delays enforcement to January 2027.
Troutman Pepper
news · May 12, 2026
Colorado Legislature Passes Bill to Repeal and Replace Colorado AI Act
“Senate Bill 189 passed the House by a 57-6 vote and cleared the Senate 34-1, and the measure, which had broad bipartisan support in both chambers, now heads to Gov. Jared Polis to be signed into law.”
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Colorado is pumping the brakes on first-of-its-kind AI regulation to find a practical path forward · May 12, 2026
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