Following a special legislative session to address concerns about its impact on innovation, the Colorado legislature on Tuesday, August 26, passed an amendment to the Colorado AI Act (SB 205) that will delay the effective date of the law until June 2026. The amendment is headed to the governor's desk for signature. 

As a reminder, Colorado's AI Act is the first comprehensive U.S. law regulating artificial intelligence, focusing on "high-risk AI systems" that make "consequential decisions" in areas such as housing, employment and health care. As currently drafted, it would require AI developers and deployers to exercise "reasonable care" to prevent "algorithmic discrimination." 

Key requirements include risk management programs, impact assessments and transparency for consumers interacting with AI, along with a right to challenge adverse consequential decisions.  However, opponents argued that the bill would stifle innovation and cause companies to leave Colorado.