Colorado Legislature Fails to Amend Recent Artificial Intelligence Act
The Colorado Legislature’s recent decision to reject proposed amendments to the Artificial Intelligence Act has sparked significant discussion among stakeholders in the technology sector. This act, originally passed in 2024, represents the first comprehensive state-level legislation in the U.S. aimed at regulating the use of artificial intelligence (AI).
Background of the Artificial Intelligence Act
In 2024, Colorado enacted the Artificial Intelligence Act, imposing strict regulations on developers and users of “high-risk” AI systems. This legislation particularly targets sectors such as employment, housing, finance, and healthcare. However, the Act has faced considerable criticism for its complexity and scope, with concerns that it may hinder innovation.
The Proposal of Senate Bill 25-318
In early 2025, in response to rising concerns from the tech industry, employers, and even Governor Jared Polis, lawmakers introduced Senate Bill (SB) 25-318. The intent behind this bill was to soften and clarify some of the more burdensome aspects of the original legislation ahead of the compliance deadline set for February 1, 2026.
Key Amendments Proposed
SB 25-318 aimed to introduce several amendments, including:
- An exception to the definition of “developer” for individuals offering an AI system with open model weights, provided they meet specified conditions.
- Exemptions for certain technologies from the stringent requirements.
- The elimination of the requirement for developers or deployers to exercise reasonable care to protect consumers from known or foreseeable risks of algorithmic discrimination.
- An exemption from certain disclosure requirements for developers who satisfy specific financial and operational criteria.
Outcome of the Legislative Vote
Despite the proposed amendments’ intention to balance innovation with necessary regulations, SB 25-318 was ultimately voted down 5-2 by the Senate Business, Labor, and Technology Committee on May 5, 2025. As a result, the original Artificial Intelligence Act remains in effect.
Next Steps for Compliance
Following the failure of SB 25-318, the next crucial step involves the Colorado Attorney General issuing rules and guidance regarding the original Act. Businesses and developers operating in Colorado must now prepare for full compliance with the Act by early 2026, unless the compliance date is extended.
For those with questions regarding compliance with Colorado’s Artificial Intelligence Act or related matters, it is advisable to consult with legal experts specializing in this area.
