As discussed here, on May 14, 2026, Colorado Governor Jared Polis signed into law SB-26-198 (ADMT Act), which focuses on the use of automated decision-making technology (ADMT) in certain high-impact decisions. The ADMT Act requires the Colorado Attorney General’s Office to adopt rules clarifying and implementing specific provisions of the law before January 1, 2027. 

In response, the Colorado Department of Law (DOL) recently released its draft manual governing the use of artificial intelligence in high-impact decisions. The Colorado Attorney General’s Office is inviting formal rulemaking comments from members of the public regarding the proposed draft manual. Written comments may be submitted through October 26, 2026. 

The proposed regulations focus primarily on clarifying when ADMT is subject to the law and how employers must comply with the Act’s notice, disclosure, and consumer rights requirements. Of particular importance, the regulations seek to clarify what it means for ADMT to “materially influence” a consequential decision. This threshold matters because the Act applies only when ADMT materially influences certain decisions, including employment-related decisions. 

The proposed regulations also provide guidance on post-adverse outcome disclosures, consumer requests to access or correct personal data used by ADMT, meaningful human review of certain decisions, and documentation requirements for developers and deployers of covered technology. 

What Does It Mean? 

For employers using AI tools in hiring, promotion, screening, or other employment-related decisions, the key issue is how broadly the Attorney General defines “materially influence.” A broader interpretation could bring more employment-related technologies within the law’s requirements, while a narrower interpretation could limit coverage to tools that play a more substantial role in employment decisions. 

Because the proposed regulations are not yet final, employers should consider using the public comment period to monitor developments and plan ahead, rather than as a trigger for immediate policy overhaul. A practical first step is to identify where AI or automated tools may be used in employment-related processes, particularly when those tools are supplied by third-party vendors. 

Employers and industry stakeholders should also consider participating in the rulemaking process before the October 26, 2026 comment deadline, particularly because the final definition could materially affect future compliance obligations.