Colorado, Connecticut, California Push New AI Rules

WASHINGTON — Colorado, Connecticut and California are advancing new artificial intelligence regulations that could shape the national landscape for AI governance, according to a legal analysis published by law firm Kelley Drye & Warren LLP.

The three states are each pursuing distinct regulatory approaches that collectively address algorithmic discrimination, automated decision-making transparency and consumer protection, the firm reported.

Colorado has been among the earliest movers on AI regulation, having enacted legislation targeting high-risk AI systems used in consequential decisions affecting consumers. The state’s framework requires deployers of AI systems to use reasonable care to avoid algorithmic discrimination and mandates impact assessments for high-risk applications, according to Kelley Drye’s analysis.

Connecticut has advanced its own AI governance measures, joining a growing number of states seeking to regulate how automated systems are used in employment, housing and other high-stakes decisions, the firm noted.

California, the nation’s largest state economy and home to many leading AI companies, continues to pursue comprehensive AI legislation. California-based rules often function as de facto national standards due to the compliance costs of maintaining separate systems across jurisdictions, according to the firm’s analysis.

The state-level push comes amid a continued absence of comprehensive federal AI legislation. While Congress has introduced numerous AI-related bills, none has advanced to passage, leaving states to fill the regulatory vacuum.

Kelley Drye’s analysis noted that the patchwork of state AI laws creates compliance challenges for companies deploying AI systems across multiple jurisdictions. Technology companies and industry groups have called for federal preemption to establish uniform national standards, according to the firm.

The developments tracked by Kelley Drye underscore a broader trend: states are not waiting for Washington to act on AI governance. With more than 40 states having introduced AI-related legislation in 2025 and 2026, according to the National Conference of State Legislatures, the regulatory environment for AI providers and deployers is growing more complex.

For companies operating AI systems in the United States, the Colorado, Connecticut and California developments signal that compliance planning must account for an expanding web of state-level requirements covering bias testing, transparency disclosures and impact assessments.