Today, artificial intelligence (AI) is increasingly integrated into various facets of life. The demand for robust regulatory frameworks to manage its ethical and social implications is imperative. Most recently, Colorado has positioned itself as a leader in the transparency movement by introducing the first groundbreaking and comprehensive AI law in the nation, set to take effect on Feb. 1, 2026. Although there is currently no existing federal legislation, Colorado’s AI Act has the potential to serve as a blueprint for future federal regulations. This new legislation is intended to protect consumers from any potential bias and discrimination that may be embedded in AI systems by setting clear guidelines that uphold ethical use of technology tools.

Overview of Colorado’s AI Act

The Colorado Artificial Intelligence Act (“CAIA”) was signed into law by Colorado Gov. Jared Polis on May 17 and is one of the first fully-comprehensive AI regulations in the United States. The act focuses on the development and deployment of “high-risk” AI systems by implementing strict requirements to prevent algorithmic discrimination and facilitate transparency.