DENVER — Colorado’s new artificial intelligence law will likely undergo changes before it takes effect in February 2026.
This year, Colorado became the first state in the nation to enact a comprehensive law on artificial intelligence.
The law requires businesses that develop or use artificial intelligence to “use reasonable care” to protect consumers from discrimination.
The law also requires them to publish a public statement “summarizing the types of systems they deploy and how they manage any known risks, and they must notify consumers when AI is used for certain decisions including in employment, finance, or healthcare.”
Colorado's attorney general has "the sole and exclusive authority" to enforce the bill.
AI is used by nearly every industry today in some form.
It can help doctors with cancer screening; help scientists fight climate change; and help businesses communicate with customers.
Colorado State Rep. Brianna Titone, D-Arvada, says while AI can do a lot of good, there can be downsides, like when it’s used to screen job applicants.
“If you submit an application to a company, your resume will probably be read by an AI process, and that will make recommendations to the hiring people on who the AI thinks should be hired,” said Titone. “There can be some bias in there, and that can cause you to not get a job.”
Titone sponsored the AI bill, SB24-205, along with Colorado Senate Majority Leader Robert Rodriguez and State Rep. Manny Rutinel.
Business organizations said the legislation would stifle innovation and competition and urged Gov. Jared Polis to veto the bill.
“This bill was rushed through the legislature without an adequate assessment of its impact on businesses and consumers in Colorado and beyond,” said Michael Richards with the U.S. Chamber of Commerce. “We believe SB 205 could adversely impact important and useful existing uses of Artificial Intelligence (AI) tools and stifle positive future innovation.”
Polis signed the bill into law on May 17.
The governor said he signed the bill “with reservations.”
“I am concerned about the impact this law may have on an industry that is fueling critical technological advancements across our state for consumers and enterprises alike,” Polis said in a letter to lawmakers. “Government regulation that is applied at the state level in a patchwork across the country can have the effect to tamper innovation and deter competition in an open market. To that end, the important work of protecting consumers from discrimination and other unintended consequences of nascent AI technologies is better considered and applied by the federal government to limit and preempt varied compliance burdens on innovators and ensure a level playing field across states along with ensuring access to life-saving and money-saving AI technologies for consumers.”
Titone said she agrees with the governor and others calling on the federal government to pass its own AI regulations.
"I think that's what we're trying to do in Colorado and some other states is to get Congress to see what our example is and then actually follow suit," said Titone.
In February, the U.S. House of Representatives launched a bipartisan task force on artificial intelligence.
“Because advancements in artificial intelligence have the potential to rapidly transform our economy and our society, it is important for Congress to work in a bipartisan manner to understand and plan for both the promises and the complexities of this transformative technology,” said U.S. House Speaker Mike Johnson.
Colorado U.S. Rep. Brittany Petterson was named to the task force.
But whether Congress will pass actual AI legislation remains to be seen.
"That is the problem. Congress talks a lot but they don't usually act on things really in a timely manner," said Titone.
Titone said she also understands the concerns the governor and business groups have about Colorado's new law.
She said the Artificial Intelligence Impact Task Force, which is made up of lawmakers, business leaders, consumer advocates and academics, would work to address some of those concerns.
“That was the reason why when we crafted the bill, we left plenty of room to have these discussions and to come up with some fixes that we can do to tweak the policy,” said Titone, who serves as vice-chair of the task force. “We just want to make sure that where we are with this policy that we are being thoughtful and not stifling innovation, and really just make sure that we have a balance of protecting our citizens from discrimination and the future of what AI is.”
On Monday, task force members got an overview of Colorado’s law and heard from experts about AI legislation in other states and countries.
They must submit recommendations to the legislature’s joint technology committee and governor’s office by February 1.
The task force’s next meeting will be held on Oct. 21, when they will hear from small businesses impacted by the new law.
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