Colorado governor signs SB 26-189, revising AI Act to regulate ADMT in employment

What happened

On May 14, 2026, Colorado Governor signed SB 26-189, repealing and replacing the 2024 Artificial Intelligence Act. The new law, effective January 1, 2027, targets automated decision‑making technology (ADMT) that materially influences consequential employment decisions. It requires deployers to notify individuals before use, disclose decisions within 30 days of an adverse outcome, and provide rights to correction, appeal, and human review.

Why it matters for trust and compliance

• Its status is signed. It is enacted but may not be in force yet. Check the effective date before planning around it.
• The law creates new notice, disclosure, and remediation obligations for employers using AI in hiring, promotion, and termination decisions.
• Takes effect January 1, 2027.
• It relates to DPDPA. The regulations library explains what that law requires.

Who is affected

Recommended actions

1. Check that privacy notices describe the practices this addresses.
2. Confirm access, correction, deletion and opt-out requests are handled within the required time.
3. Inventory AI or automated decision systems in scope and their assessments.