Understanding US State AI Regulations and Compliance

As AI becomes more prevalent, US states are taking the lead in establishing AI regulation frameworks. With Colorado AI Act enforcement beginning June 2026 and other states following suit, organizations need to understand and prepare for state-level transparency requirements.

The State-Level AI Regulation Landscape

In the absence of comprehensive federal AI regulation, US states are creating their own frameworks. This creates a patchwork of requirements that organizations must navigate, similar to how state privacy laws evolved before federal privacy legislation.

Colorado AI Act: The First Major State Framework

Colorado's AI Act, which takes effect in June 2026, establishes transparency requirements for organizations using AI systems. Key requirements include:

• AI Usage Disclosure: Organizations must disclose when AI is being used in decision-making processes
• Transparency Policies: Publicly available policies explaining AI usage, data practices, and decision-making processes
• Consumer Rights: Mechanisms for consumers to understand and challenge AI-driven decisions
• Accountability: Clear responsibility for AI system outcomes and recourse processes

California's TFAIA: Frontier Model Focus

California's Transparency in Frontier Artificial Intelligence Act (TFAIA), signed in September 2025, focuses specifically on frontier AI models—the most powerful AI systems. This law requires:

• Transparency reports before deploying frontier models
• Comprehensive Frontier AI Frameworks for large frontier developers
• Critical safety incident reporting
• Whistleblower protections

Other States Following Suit

Several other states are developing or have proposed AI regulation frameworks:

• New York: The Responsible AI Safety and Education Act (RAISE) has passed the state legislature and awaits the Governor's signature
• Connecticut: AI regulation bill passed in 2024, focusing on state agency use of AI
• Other States: Multiple states have AI regulation bills in various stages of development

Common Themes Across State Regulations

While specific requirements vary, common themes emerge across state AI regulations:

• Transparency: Requirements for clear disclosure of AI usage and practices
• Accountability: Mechanisms for holding organizations responsible for AI outcomes
• Consumer Rights: Processes for consumers to understand and challenge AI decisions
• Risk Management: Expectations for identifying and mitigating AI-related risks
• Governance: Requirements for oversight and decision-making structures

Challenges of State-Level Regulation

The state-by-state approach creates several challenges for organizations:

• Compliance Complexity: Organizations operating in multiple states must comply with different requirements
• Inconsistent Standards: Varying definitions and requirements across states
• Resource Requirements: Need to track and adapt to multiple regulatory frameworks
• Uncertainty: Rapidly evolving regulatory landscape makes long-term planning difficult

Preparing for State AI Regulation Compliance

Organizations should take proactive steps to prepare for state AI regulation:

1. Establish a Foundation

Start with basic transparency practices that align with multiple state requirements:

• Publish clear AI usage policies
• Implement point-of-use disclosure
• Create consumer recourse processes
• Document AI systems and practices

2. Monitor Regulatory Developments

Stay informed about AI regulation in states where you operate or serve customers. Regulatory requirements are evolving rapidly, and early preparation provides a competitive advantage.

3. Build Flexible Compliance Frameworks

Develop compliance practices that can adapt to varying state requirements while maintaining core transparency principles. A flexible framework reduces the need to rebuild compliance processes for each new state regulation.

4. Consider Certification

Third-party certification can help demonstrate compliance with multiple state requirements while providing a clear framework for transparency practices.

How SiteTrust Certification Helps

SiteTrust certification is designed to align with state AI regulation requirements, including:

• Colorado AI Act Alignment: Our certification requirements align with Colorado's transparency and disclosure requirements
• California TFAIA Readiness: Tier 3 certification helps frontier model developers prepare for TFAIA requirements
• Flexible Framework: Our three-tier system allows organizations to start at the appropriate level and scale up as requirements evolve
• Third-Party Validation: Independent certification demonstrates commitment to transparency and helps with regulatory compliance
• Ongoing Support: We help organizations stay current with evolving regulatory requirements

Timeline for Compliance

With Colorado AI Act enforcement beginning in June 2026, organizations have approximately 6-12 months to prepare. Key milestones:

• Now - Q1 2026: Establish transparency frameworks and policies
• Q2 2026: Complete certification and prepare for enforcement
• June 2026: Colorado AI Act enforcement begins
• 2026-2027: Additional states likely to begin enforcement

Getting Started

Organizations that start preparing now will be best positioned for compliance when enforcement begins. SiteTrust certification provides a clear path to meeting state AI regulation requirements while building consumer trust.