State-Level AI Legislation: Virginia’s Veto and Colorado’s Revisions

US State AI Legislation: Recent Developments in Virginia, Colorado, and Texas

The landscape of artificial intelligence (AI) regulation in the United States is rapidly evolving, with significant legislative actions occurring in various states. Recently, Virginia’s Governor Glenn Youngkin vetoed a bill aimed at regulating high-risk AI systems, while Colorado reconsiders its existing laws, and Texas introduces modifications to its proposed legislation.

Virginia Vetoes AI Regulation Bill

Governor Glenn Youngkin of Virginia vetoed HB 2094, a bill that sought to impose regulatory measures on AI systems classified as “high-risk.” The bill had narrowly passed the state legislature and aimed to implement obligations similar to those in the Colorado AI Act. Youngkin’s concerns centered around the belief that such regulations could hinder the growth of Virginia’s AI industry and its overall economic development. He emphasized that existing laws related to discrimination, privacy, data usage, and defamation could adequately protect the public from AI-related risks.

Colorado’s AI Legislation Under Review

In Colorado, although the Governor Jared Polis signed the AI Act last year, there are ongoing discussions regarding its effectiveness. The AI Impact Task Force has issued recommendations for assessing and improving the law ahead of its effective date in February 2026. Their report categorizes potential changes into four distinct areas:

  • Consensus Exists: Minor changes that require implementation.
  • Additional Time Needed: Areas needing more stakeholder engagement, such as clarifying the definition of “consequential decisions.”
  • Interconnected Issues: Topics requiring resolution before consensus can be reached, including the definition of “algorithmic discrimination.”
  • Firm Disagreement: Issues where consensus is lacking, such as whether to include opportunities for remediation in cases of non-compliance.

Texas Proposes Modifications to AI Governance

Meanwhile, Texas is also navigating the complexities of AI legislation. The proposed Texas Responsible AI Governance Act has undergone recent modifications, notably removing the concept of algorithmic discrimination. The current draft prohibits the development or deployment of AI systems with the “intent to discriminate,” asserting that mere disparate impact is insufficient to demonstrate intent.

This proposed law aligns closely with Utah’s AI legislation, which requires notification when individuals interact with AI, although this requirement is limited to government agencies. Furthermore, it aims to prevent the intentional development of AI systems designed to “incite harm or criminality.”

Implications for AI Regulation

The veto of HB 2094 in Virginia signifies the ongoing challenges states face in achieving comprehensive AI regulation. As states like Colorado and Texas adapt their legislation, the path to a unified approach to AI governance remains uncertain. Currently, several states, including New York, California, Illinois, and Tennessee, have enacted or are working on AI legislation that addresses various aspects of AI technologies, scheduled to take effect between 2024 and 2026.

As the regulatory landscape continues to shift, stakeholders—including legislators, researchers, and industry leaders—must remain vigilant and proactive in shaping the future of AI governance. The complexity of these issues underscores the necessity for ongoing dialogue and collaboration among all parties involved.

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