Colorado Repeals AI Act as Georgia, California, and New York Advance New Bills
Colorado repealed its AI Act; Georgia signed an AI chatbot law; California and New York advanced new AI privacy bills.
Why it matters: GCs and compliance leads face a shifting patchwork: states are defining AI and privacy rules, replacing strict mandates with transparency, and adding specific obligations for chatbots and protections for minors—all in the absence of federal policy.
- Colorado repealed its 2024 AI Act on May 9 via SB 26-189, enacting transparency-focused replacement rules.
- Georgia’s SB 540, signed May 15, requires AI chatbots to identify themselves and implements controls to protect minors online.
- California and New York legislatures moved forward several named AI and privacy bills in May 2026, intensifying compliance complexity.
- Colorado’s update eliminates formal impact assessment and risk management requirements from its new law.
State AI and privacy laws saw major moves in May 2026, raising the bar for compliance across jurisdictions.
- Colorado: With Senate Bill 26-189, Colorado repealed its strict 2024 Colorado AI Act before it took effect. The new law, effective January 1, 2027, focuses on transparency and clear user disclosures. Key mandates requiring companies to perform formal impact assessments (systematic reviews of AI risks) and maintain risk management programs (formal plans for managing those risks) were dropped. Governor Jared Polis called this a model for other states, aiming to reduce compliance burdens while maintaining user protections.
- Georgia: On May 15, Governor Brian Kemp signed Senate Bill 540. This law requires AI-powered chatbots to disclose they are not human at the start of conversations. It also compels platforms to provide parental controls, block AI-generated romantic interactions with children, and offer accessible crisis resources. Senator Jason Anavitarte said, “We have a responsibility to ensure these technologies develop in a way that protects our children.”
- California & New York: In May, lawmakers in both states progressed a wave of privacy and AI bills—such as California’s AB 2930, AB 2013, and SB 1124, and New York’s SB 8187 and AB 8923. Topics range from algorithmic discrimination bans to expanded consumer transparency obligations. For an overview of these measures, see detailed coverage from LexBlog’s May 18, 2026, update.
Businesses and law firms operating nationally must now monitor and adapt to expanding disclosure, chatbot oversight, and child protection rules. The trend toward patchwork regulation is likely to intensify, with enforcement timelines already calendared for early 2027.
By the numbers:
- Jan. 1, 2027 — effective date for Colorado's new transparency-focused AI law
- May 9, 2026 — Colorado passed SB 26-189 replacing the AI Act
- May 15, 2026 — Georgia’s SB 540 AI chatbot disclosure law signed
Yes, but: Full details of implementation rules and regulatory guidance are still pending in several states, leaving some requirements subject to change.
What's next: With Colorado’s and Georgia’s laws now on the books, California, New York, and other states are expected to finalize additional AI and privacy bills before the end of 2026.