For consumers: Protections will apply in fewer contexts (only employment and public safety) and won’t take effect until 2027. Smaller businesses and many local governments will not be required to follow the rules.
For businesses: The compliance burden is reduced for small and medium-sized organizations. Larger corporations will still need to meet transparency and fairness requirements for AI systems used in hiring or public safety.
For policy: This narrows the scope and delays the timeline of Colorado’s pioneering AI regulation, making it less sweeping than the original 2024 law.