A year after passing what was hailed as the most comprehensive artificial intelligence law in the United States, Colorado lawmakers are now working swiftly to repeal and replace it. With the law scheduled to come into effect in February 2026, Governor Jared Polis has summoned lawmakers for a special session to address this issue, along with a $750 million budget deficit.
The original legislation aimed to regulate the use of artificial intelligence in sectors such as healthcare, housing, lending, legal matters, education, and employment to prevent discrimination. Democratic State Senator Robert Rodriguez of Denver was instrumental in enacting the pioneering law. However, the backlash has been significant, with critics ranging from technology developers to hospitals and universities, who argue the law imposes unrealistic demands.
Rodriguez acknowledged the concerns, stating, “Everything became onerous and overly complicated,” which led to his decision to draft a new bill during the special session. State Representative William Lindstedt, a fellow Democrat from Broomfield, is also proposing a separate bill aimed at revising the existing framework.
Both proposed bills emphasize the need for transparency regarding the use of AI by requiring companies to disclose their use of technology. However, Rodriguez’s approach defines artificial intelligence more broadly and mandates that companies inform users about the characteristics that influenced AI-driven decisions, along with requirements to correct any inaccuracies in data used.
“We aim to position ourselves as leaders not just in innovation, but also in safe innovation,” Rodriguez stated during the discussions. Lindstedt echoed the sentiment, emphasizing the economic implications: “Fourteen percent of new job growth is related to AI right now. We have to get this right.”
While Lindstedt’s bill aligns with federal definitions of AI and obligates companies to disclose when they employ AI, it does not require them to explain the reasoning behind algorithmic decisions. “This ensures compliance with existing Colorado statutes, enhancing consumer protection while clearly defining roles for technology deployers,” he added.
Tech companies have largely rallied behind Lindstedt’s proposal, viewing it as more manageable. In contrast, many regard Rodriguez’s bill as impractical. Fiscal analysts have estimated that complying with the requirements of his original version would demand nearly $7 million annually from the state. Following this feedback, Rodriguez made adjustments to exempt public entities from fully disclosing the characteristics utilized in AI decisions, but individuals retain the option to file open records requests for further information.
“We’re trying to take a thoughtful approach to this legislation,” Rodriguez remarked, addressing the concerns around its potential impact. Both proposed bills have successfully passed their initial committee stages, signaling an ongoing commitment to refining the state’s approach to artificial intelligence regulation.
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