The Colorado AI Act ("CAIA"), originally set to go into effect February 1, 2026, is now set to go into effect June 30, 2026 pending signature by Governor Jared Polis. This delay gives Colorado lawmakers another chance to amend the law in the 2026 regular legislative session, which starts in early January. Whether the legislature will be able to reach a consensus on amendments in 2026 remains to be seen, as stakeholders intended to amend CAIA in the 2025 regular legislative session in time for its original effective date. CAIA has been the subject of fierce debate since its passage, with four different amendments proposed just during this summer's special legislative session. In addition to local disagreement about how CAIA would impact businesses, Colorado lawmakers have also been feeling pressure at the federal level, first with a proposed 10-year AI regulation moratorium that was later stripped out of the Big Beautiful Bill, and later by the White House's AI Action Plan, which threatens to withhold federal funding from states that enact comprehensive AI laws.

Despite having nearly two years to prepare for the February effective date, businesses were struggling with how to implement the law's stringent compliance requirements. CAIA's biggest impact will be on human resources departments that have integrated AI tools into hiring processes, a practice that has permeated all industries. With the delayed effective date, businesses have more time to develop a compliance strategy, and may see some relief in the form of an amendment if lawmakers and stakeholders can reach a consensus in 2026.