Colorado Enacts First Comprehensive U.S. Law Governing Artificial Intelligence Systems

On May 17, Governor Polis signed the Colorado AI Act (CAIA) (SB-205) into law, establishing new individual rights and protections with respect to high-risk artificial intelligence systems. Building off the work of existing best practices and prior legislative efforts, the CAIA is the first comprehensive United States law to explicitly establish guardrails against discriminatory outcomes from the use of AI. The Act will take effect on February 1, 2026.

The CAIA is informed by extensive stakeholder engagement efforts led by Colorado Senate Majority Leader Rodriguez and Connecticut Senator Maroney, including a bipartisan multistate policymaker working group convened by FPF last year. The regulation of emerging technologies such as artificial intelligence is a complex issue where effective governance is best achieved by incorporating multiple perspectives and diverse stakeholder input. Throughout the legislative process, the CAIA also incorporated amendments from stakeholders in crafting a framework that can support both functionality and consumer protection.

FPF has released a Two–Page Fact Sheet summarizing the key definitions, consumer rights, and business obligations established by SB-205.