Almost Friday! Let’s spend today on something that is moving fast and quietly at the same time: AI regulation. While most of the public conversation around AI has focused on what the technology can do, governments and regulators are increasingly focused on what businesses are allowed to do with it, and the rules are tightening in ways that matter for companies of every size.
It Is Not Just a Big Tech Problem
When people hear “AI regulation,” they tend to think of it as something that applies to the companies building the AI, not the businesses using it. That is no longer accurate. In 2026, regulations are beginning to reach the businesses that deploy AI tools in their operations, particularly when those tools are used in ways that affect employees or customers.
Connecticut’s New AI Disclosure Requirement As of October 1, 2026, employers in Connecticut who conduct layoffs that qualify under the federal WARN Act are now required to disclose to the state Department of Labor whether AI contributed to that decision. This is the first state-level requirement directly linking AI use to employment decisions, and it will not be the last.
California’s Proposed “No Robo Bosses” Act Still awaiting the governor’s signature in California, this legislation would prevent employers from relying solely on automated systems to make significant employment decisions. The intent is to ensure a human is always meaningfully involved when AI is used to affect someone’s job. Whether or not this specific bill passes, it signals where regulatory thinking is heading.
Colorado’s Revised AI Law Colorado revised its earlier AI legislation with SB 26-189, set to take effect January 1, 2027. The new version focuses on narrower notice and disclosure requirements for high-risk AI systems, particularly in areas like employment, lending, and education.
What This Means Practically for Business
If your business is using AI tools in hiring, performance management, scheduling, or customer decisions, you need to start building documentation around how those tools are used and what role humans play in reviewing AI-generated recommendations.
This is not about fear. It is about being ahead of requirements that are coming regardless. The businesses that already have AI governance policies in place when regulators start asking questions will be in a very different position than the ones that have to scramble to create them under pressure.
This Is Where RJ2T Comes In
RJ2 Technologies helps businesses navigate the intersection of AI adoption and compliance. We help you understand what AI tools are in use across your environment, how data flows through them, and what governance policies you need to protect both your business and the people it serves. Getting ahead of AI regulation is not a burden. It is a competitive advantage.
Book your free discovery call here: https://meetings.hubspot.com/jeff-dann/free-discovery-call
