Revamped Colorado AI law targets ‘consequential’ HR decisions, takes effect in 2027

The legislation takes effect in 2027.

The law replaces a previous version that had imposed stricter requirements on employers. The term 'consequential' is defined in the legislation to cover key employment actions, including hiring, promotion, and pay determinations. Employers must inform workers or applicants when AI is used in such decisions, but the law does not mandate bias testing or audits of AI systems.

The 2027 effective date gives employers a two-year window to adjust their practices. The law signals ongoing legislative activity around AI in the workplace at the state level.