Regulations surrounding AI use have been slow to come, and Colorado’s attempts to lead the pack have been met by considerable opposition. As it turns out, the Colorado AI law is facing delays as renewed resistance from lobbyists and governmental forces has pushed its enforcement further than planned. The Colorado Artificial Intelligence Act (CAIA) was initially scheduled to take effect on February 1, 2026, but an additional five-month delay is expected, pushing its implementation to June 30, 2026.
The landmark AI legislation is designed to add checks on high-risk artificial intelligence systems that are deployed to make “consequential decisions,” including those in relation to employment. The law is designed to protect citizens from “algorithmic discrimination,” holding both developers and deployers accountable for its use.
The implementation of the Colorado AI law has been delayed from early 2026 to later in June, opening up room for further amendments.(Image: Freepik)
Colorado AI Law Delay Pushes AI Regulations Further Back than Planned
Much to the relief of many experts and critics of AI, the Colorado AI law has been delayed but not scrapped just yet. The Colorado AI law update followed lawmakers’ failure to reach a consensus on proposed changes to the bill during a special legislative session. Colorado was among the first states to kickstart the enforcement of concrete laws to pace the release of AI technology and protect its residents from the repercussions of uncontrolled implementation of these undertested services.
The CAIA law, enacted on May 17, 2024, focuses on “high-risk” AI systems and ensures that all parties that either develop or deploy such technology take measures to ensure its implementation is done safely. These high-risk AI systems are defined as any AI tools that are used to make consequential decisions that affect the future of the individual, whether in housing, education, employment, health care, financial services, or legal services.
It protects citizens from any discrimination based on a multitude of characteristics, from race and religion to disability and veteran status. We have already witnessed a rise in AI tools in hiring, and many employers appear comfortable with allowing such tools to make hiring and firing decisions independently, without supervision. This is why the Colorado law is seen as such a landmark AI legislation.
Why Is There a Delay in the AI Law Implementation in Colorado?
The announced delay in AI law implementation will give Colorado lawmakers more time to make amendments to the law during the 2026 legislative session, which is expected to begin early in January, according to attorneys from global law firm Reed Smith. While there is some hope that landmark AI legislation will still meet consensus among lawmakers by the original date, it does appear unlikely. Further still, a lack of agreement on the specifics could push the deployment of the regulations even further away, beyond the newly proposed date.
Apart from the purpose of ironing out any kinks in the regulation, the AI law has also likely been delayed due to federal promises of withheld funding in states where too many rules are implemented on technology. The government is already on its way to using Grok for its activities, opening the door to many potential leaks of critical data.
The AI law has also evoked backlash in Colorado because businesses are afraid of state-by-state regulations on AI and privacy that may make it difficult to ensure compliance. While businesses that operate in multiple states are already under an obligation to adhere to the laws of the region, it appears that many are reluctant to comply with new age laws that complicate matters further. There is considerable uncertainty regarding compliance with the Colorado law.
What Does the Colorado AI Law Mean for HR?
With the delay of the Colorado law, HR teams now have more time to prepare for the expected arrival of new laws that moderate the use of AI. Keeping up with the CAIA law is an essential HR responsibility to ensure that any new changes to the regulation are understood and met once it officially goes into effect.
Much like regulations surrounding no tax on tips or overtime, it falls to HR to be aware of the state and federal changes to ensure that their businesses are not confronted by accusations of non-compliance.
In the absence of regulations, it is generally a good idea to monitor the efficacy of upcoming technology to ensure that it is bias-free. This is not a one-time responsibility. Errors in this tech are fairly common, and issues could spring up at any time, making human supervision an essential component when introducing any AI technology at your organization.
By auditing the tech with regularity, HR teams can protect their employees and potential recruits. They can also ensure that their business is prepared for changes in regulation in the future. Being prepared is much easier than hasty, last-minute compliance.
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