US State AI Laws
US State AI Laws — What Small Teams Need to Know
While federal AI law moves slowly, US states are passing their own AI rules. Colorado, Illinois, California, New York City and others have laws that may already apply to your team. Here's the practical summary.
Frequently Asked Questions
- Which US states have AI laws?
- Colorado repealed and reenacted its AI law in 2026 (SB 26-189), with automated decision-making duties from January 1, 2027. Illinois regulates AI analysis of video interviews and, since January 1, 2026, bars employers from using AI that has a discriminatory effect and requires them to tell workers when they use it (HB 3773). New York City (Local Law 144) covers automated employment decision tools. California has enacted laws such as SB 53 on frontier AI developers (signed September 29, 2025).
- Does Colorado's AI law apply to small businesses?
- SB 26-189 replaced SB 24-205. From January 1, 2027 it applies to developers and deployers of automated decision-making technology used to materially influence consequential decisions in areas such as employment, housing, lending, insurance and health care. Deployers must give consumers notice and keep records for at least 3 years. Enforcement is on hold while xAI's lawsuit against the attorney general is pending: an April 27, 2026 court order bars the attorney general from enforcing until 14 days after the court rules on xAI's preliminary injunction motion.
- What does the Illinois AI Video Interview Act require?
- The Illinois Artificial Intelligence Video Interview Act (in effect since January 1, 2020) requires employers that use AI to analyze recorded video interviews for positions based in Illinois to notify applicants, explain how the AI works, and get consent before the interview. Videos must be deleted within 30 days of an applicant's request.
- How do I keep up with new state AI laws?
- Subscribe to our Regulation Alerts (free) to get notified when new US state AI laws pass or come into effect. The landscape is changing fast — a spreadsheet won't cut it.