Colorado has become the first state in the US to pass the Artificial Intelligence Act, SB 24-205, aimed at comprehensively regulating AI.

Governor Jared Polis signed the law, which targets high-risk AI systems in critical decision-making areas like employment and healthcare to prevent algorithmic discrimination.

The law mandates disclosure, impact assessments, and risk management policies for AI systems, with enforcement by the state attorney general's office.

Organizations using AI must prioritize compliance with the new regulations to adapt to the evolving landscape of AI regulation at both federal and state levels.

Governor Polis signed the bill into law with reservations, urging lawmakers to make improvements before it goes into effect on February 1, 2026.

Similar measures are being considered in other states, such as Connecticut, highlighting a nationwide push to prevent algorithmic discrimination in AI use.

Developers, deployers, and employers should prepare for increased regulatory scrutiny on AI in the workplace and establish plans for AI governance.