A Fix to the 2024 Colorado Artificial Intelligence Regulation Bill Fails in 2025
On May 6, 2025, it was announced that a proposed fix to the 2024 Colorado Artificial Intelligence Regulation Bill has been postponed indefinitely, effectively killing the measure. This decision was made by Senate Majority Leader Robert Rodriguez, D-Denver, during a meeting of the Senate Business, Labor & Technology Committee.
Background
In 2024, Colorado became the first state in the nation to enact a law aimed at establishing guardrails around the use of artificial intelligence (AI) in various sectors, including employment, health care, education, and government practices. Advocates of the law cited concerns over potential bias or discrimination as primary motivations for its implementation.
With the failure of SB 318, institutions must now comply with the original requirements of the 2024 bill by February 1, 2026.
Governor’s Concerns
Although the governor signed the initial bill into law, he expressed concerns regarding its impact on an industry that is critical for technological advancement. In his signing statement on May 17, 2024, Governor Jared Polis highlighted the need for ongoing adjustments to mitigate potential negative effects on innovation and competition.
Joint Letter to Stakeholders
In a month following the bill’s signing, Governor Polis, along with Attorney General Phil Weiser and Senator Rodriguez, issued a joint letter to stakeholders in the AI space. They pledged to clarify the law and address any unintended consequences arising from its implementation. The letter acknowledged concerns from local businesses regarding the law’s broad definition of AI and its associated disclosure requirements, which could lead to high costs and hinder growth.
Areas for Improvement
To address stakeholders’ concerns, the law was identified to require enhancements in at least five key areas:
- Refining the definition of AI to align with federal standards and those from other states with significant technology sectors.
- Focusing regulation on developers of high-risk AI rather than deployers, which often include smaller businesses utilizing third-party software.
- Transitioning to a more traditional enforcement model under the Attorney General, moving away from the law’s proactive disclosure requirements.
- Clarifying that consumers’ right of appeal is linked to the Attorney General’s ability to investigate discrimination or through the Consumer Rights Commission.
- Considering measures to create a more welcoming environment for technological innovation while preventing discrimination.
SB 318 Introduction and Reception
Introduced just a week prior to its hearing, SB 318 faced immediate criticism from various sectors, including venture capitalists, public schools, and higher education institutions. Senator Rodriguez described the bill as a starting point for further discussions with interested parties to prepare for its first hearing.
However, as the legislative session drew to a close, the bill faced limited options for progression. Rodriguez proposed an amendment to extend the original implementation date, but ultimately abandoned the idea, acknowledging that the law had already been in effect for a year.
Conclusion
The failure of SB 318 highlights the complexities and challenges associated with legislating emerging technologies like AI. As stakeholders in Colorado continue to navigate the implications of the 2024 regulation bill, the focus remains on balancing innovation with the need for safeguards against potential discrimination and bias in AI applications.
