US public policy spotlight: the AI landscape in the states

In June, Colorado became the first state to adopt a comprehensive AI framework. The new law, which takes effect February 1, 2026, regulates the development, deployment and use of certain AI systems. The law defines an AI deployer as “a person doing business in this state that deploys high-risk artificial intelligence system.”

An AI developer is defined as a person doing business in Colorado “that develops or intentionally and substantially modifies an artificial intelligence system.” Under this new law, developers will be required to make certain disclosures and documentation available to deployers, the state attorney general and the public. Deployers will be required to implement a risk management policy and program, complete an impact assessment of the system and comply with several other new regulations. The law exempts deployers with fewer than 50 employees that do not use their own information or data to train the AI.

The Colorado law stops short of establishing a new government agency to provide formal oversight of AI developers in the state but charges the state attorney general with enforcing the new requirements. Importantly, the law requires developers and deployers to exercise “reasonable care” to protect consumers from any known or “reasonably foreseeable” risks of algorithmic discrimination.

Notably, Colorado Governor Jared Polis issued a strong statement after signing the law, urging lawmakers to work with industry to make changes that strike a balance between consumer protection and efforts to spur innovation. With an effective date more than a year and a half away, lawmakers will have time to amend the statute to address these concerns.

The most robust state legislative proposal to date, however, is California’s SB 1047. California’s proposal would prohibit certain AI uses and require developers to certify compliance with a list of new disclosures and risk safeguards. The bill would also establish and fund a new state government agency to monitor compliance. The breadth of the bill and the prominence of California as an economic engine and innovation hub for the nation make this bill very significant to the outlook of AI technology in the US.