Thursday, March 14, 2026 Update:
It’s Law.
Governor Polis signed SB-26 189 on Thursday, March 14, 2026. Colorado businesses using AI in decisions affecting housing, employment, lending, insurance, or healthcare now have until January 1, 2027 to comply.
The concept is straight-forward, but application of the law is more nuanced than you might expect. Determining whether the law applies in the first place requires a layered analysis of the AI tool, how it’s used, who interfaces with it, and its ultimate output. If you determine the law applies, you must ascertain what actions are required depending on the outcome. We’ve been tracking SB 26-189 since introduction and are preparing a compliance kit specifically geared toward the bill to sort out the particulars for you.
If you want to be first to know when the Colorado AI Compliance Kit is ready, please join the interest list below.
CO AI Law Compliance Kit (Real Estate Professionals) Interest Form.
Update — Tuesday, May 12, 2026:
It’s Headed to the Governor’s Desk
The Colorado Senate today confirmed the House amendments to SB 26-189, completing legislative passage of the bill. It now heads to Governor Polis for signature. The law takes effect January 1, 2027. Businesses that deploy AI tools in residential real estate transactions, employment decisions, lending, insurance, and healthcare should begin compliance planning now. We will update this page upon Governor signature.
In the meantime, we are finalizing a comprehensive compliance kit specifically designed for Colorado real estate brokerages — including attorney-drafted policies, disclosure templates, vendor management documents, and adverse outcome protocols. If you’d like to be notified when it’s available, click here.
Monday, May 11, 2026 Update:
Late last week, the Colorado House passed SB 26-189 on a 57-6 vote with minimal amendments. The framework – definitions, disclosure obligations, consumer rights, and enforcement – is unchanged from the Senate’s May 7th version. The bill is expected to head to Governor Polis for signature pending Senate concurrence on the procedural House amendments. We are monitoring for confirmation and will continue to provide updates as they arise.
Background
Colorado enacted a comprehensive AI law in 2024 (SB 24-205), with an original effective date of February 1, 2026. Following industry pushback and pending litigation, the effective date has been extended to June 30, 2026, and an amendment restricting the scope of the law (SB 26-189) has now passed the Senate and is under consideration in the House.
Current Developments
SB 26-189 would shift the law away from a broad, compliance framework toward a targeted, decision-based model. Under the Senate-approved reengrossed version, obligations would apply where AI makes or is a substantial factor in making a “consequential decision.”
While the final form of the law is still pending, the direction is clear:
When AI materially influences important business decisions, specific obligations will apply.
Takeaway
Many businesses are already using AI tools in day-to-day operations. As the law continues to evolve, they should begin to contemplate the contours of a basic AI governance framework to better position themselves as legal requirements come into focus.
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