Colorado Delays AI Bias Law to June 2026 as California Enforces CCPA AI Rules Oct. 1 and Expands Insurance AI Governance

Colorado has postponed the effective date of its AI Act, a pioneering law addressing algorithmic bias in employment decisions, now delayed until June 2026. This delay places businesses using AI tools for hiring and employment decisions in a state of regulatory uncertainty, as the law may be revised to include new provisions such as altered transparency requirements and joint liability. Meanwhile, California has finalized its regulations under the California Consumer Privacy Act (CCPA) concerning automated decision-making technology, risk assessments, and cybersecurity audits, with these rules taking effect on October 1, 2025. Additionally, California has introduced specific regulations governing the use of AI in employment decisions. Separately, the Colorado Division of Insurance has expanded its AI governance and regulatory framework to cover private passenger auto and health benefit plan insurers, reflecting a broader regulatory focus on AI applications across sectors.