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CO AI Healthcare Act

Use of Artificial Intelligence in Health Care (HB26-1139)

Regulates mental health companion chatbots and AI use in healthcare utilization review. Declares AI providers engage in unauthorized practice of psychotherapy if their chatbot misrepresents credentials, uses reserved professional titles, delivers unsupervised psychotherapy, or fails to disclose it is not human. Separately requires AI-driven insurance utilization review to consider individual clinical circumstances rather than solely group data.

Jurisdiction

Colorado

Enacted

Jun 2, 2026

Effective

Jan 1, 2027

Enforcement

Colorado Attorney General

Signed by Governor Polis on June 2, 2026 (Chapter 325, Session Laws of Colorado 2026), after passing the Senate 33-2. Effective January 1, 2027.

Colorado General Assembly

Why It Matters

Establishes unauthorized practice of psychotherapy framework for AI chatbots that present themselves as mental health providers, complementing HB26-1195 which restricts licensed therapists from delegating clinical work to AI.

Recent Developments

Signed into law June 2, 2026. Companion bill to HB26-1195 (AI Psychotherapy Restrictions for licensed professionals).

At a Glance

Applies to

Mental Health AppAI CompanionHealthcare AI

Harms addressed

Who Must Comply

  • AI system providers offering mental health companion chatbots
  • Health care entities using AI for utilization review
  • Insurance carriers using AI for coverage decisions
  • Pharmacy benefit managers
  • Managed care entities

Safety Provisions

  • Mental health companion chatbots must provide clear, conspicuous notice they are not human and not authorized to provide psychotherapy
  • AI systems cannot misrepresent themselves as licensed mental health professionals
  • AI cannot use titles or descriptions reserved for regulated mental health professionals
  • AI-driven psychotherapy delivery requires oversight by a regulated professional
  • AI-recommended insurance denials must be reviewed by a licensed clinician
  • AI utilization review must consider individual clinical circumstances, not solely group data

Exemptions

Administrative AI Use

AI used for scheduling, billing, recordkeeping, and similar administrative tasks is permitted

  • • No therapeutic interaction
  • • No clinical decision-making

Compliance & Enforcement

Penalties

Not yet specified in available bill text; companion bill HB26-1195 references Consumer Protection Act enforcement

View on map

Colorado

Focus Areas

Mental health & crisis
Algorithmic accountability
Active safeguards required

Cite This

APA

Colorado. (2026). Use of Artificial Intelligence in Health Care (HB26-1139).

Related Regulations

Enacted US-CO

CO HB 1263

Imposes obligations on conversational AI service operators including minor-user protections, suicide and self-harm protocols, prohibition on emotional dependence and engagement gamification, and annual safeguard reporting.

In Effect US-CO

CO AI Psychotherapy Restrictions

Prohibits licensed mental health professionals from using AI to detect emotions, generate treatment plans without clinician review, or directly interact with clients therapeutically. Allows AI for administrative support with consent.

Enacted US-IA

IA SF 2417

Establishes requirements and guidelines for conversational AI services including AI disclosure to minors, prohibition on sexually explicit content for minors, prevention of deceptive human-like interactions, and parental controls for children under 13.

Enacted US-IL

IL HB 5511

Requires covered operators of online platforms to apply protective default settings to users they know to be minors, including limits on algorithmic feeds, a 10 p.m. to 7 a.m. notification curfew and no autoplay by default on addictive social media platforms, and establishes a device-level age-bracket signal that Internet-enabled device manufacturers must provide and operators must request. Announced by the Governor as the Children's Social Media Safety Act, the title of the bill as introduced. Enforced by the Attorney General.

Enacted US-NJ

NJ Kids Code

Codifies a New Jersey Age-Appropriate Design Code requiring covered online service providers to design services likely to be accessed by minors around minors' safety and wellbeing, including high-privacy defaults, limits on engagement-maximising design features, and data protection impact assessments. Enforced by the Attorney General with a private right of action for minors and their parents.

Pending US-MA

MA S.3164

Would create General Laws chapter 93M requiring covered operators of social media platforms to apply protective default settings to users they determine to be minors, including disabling addictive algorithmic feeds, overnight notifications, autoplay and infinite scroll, and limiting precise geolocation sharing and account visibility. The Attorney General would set age-assurance regulations and hold exclusive enforcement authority.

Last updated August 2, 2026. Verify against primary sources before relying on this information.