Nearly half of U.S. states are developing AI governance laws, with compliance and risk management implications, according to Gallagher.
Nearly half of U.S. states are proposing or adopting artificial intelligence (AI) governance legislation while federal and international regulations continue to evolve, creating significant implications for cyber insurance coverage as organizations deploy AI systems, according to a risk bulletin from Gallagher.
The regulatory environment for AI is becoming increasingly complex across multiple jurisdictions, the report noted.
Colorado has emerged as a frontrunner with its Colorado Artificial Intelligence Act, effective Feb. 1, 2026, which establishes separate responsibilities for AI developers and “deployers,” particularly for high-risk systems affecting employment, financing, health services, housing, and insurance decisions. Developers must maintain accountability for known risks and report algorithmic discrimination, while AI deployers of high-risk systems must implement risk management programs and provide mechanisms for individuals to…
