DENVER — U.S. Congress is considering banning states from regulating artificial intelligence for the next 10 years, adding uncertainty to the future of Colorado’s AI law.
In 2024, Colorado became the first state to pass a comprehensive law regulating artificial intelligence.
“A.I. in general is just changing so rapidly all the time,” said State Rep. Brianna Titone, one of the prime sponsors of Senate Bill 24-205.
Titone said SB24-205 aims to protect consumers from AI systems they may unknowingly come across.
“You’re trying to get a job, get a loan, legal decisions, getting into college,” said Titone. “If there’s an AI system making those decisions on behalf of that entity, how is that affecting you? Do you even know that this AI system is being used?”
The law requires companies and organizations to notify consumers whenever they’re interacting with an AI system. It also provides a process through the state attorney general for consumers to challenge AI systems they believe are biased against them.
“If you believe that the AI system has been biased, you can have some relief,” said Titone.
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The law is set to take effect in February 2026, but many in the tech industry are calling for it to be delayed over concerns that companies won't be able to comply with all the new rules, putting jobs at risk. The Colorado Technology Association said delaying the law's implementation for a year would provide time to address their concerns.
“Colorado Technology Association remains focused on extending the implementation date for Senate Bill 24-205 to at least 2027 in order to provide enough time to address our serious concerns with the law,” said Brittany Morris Saunders, president and CEO of the Colorado Technology Association.
Titone said she and other bill sponsors tried to work with the tech industry to improve the law this past legislative session.
"We knew that there was some dissatisfaction in the law, and we understood that,” said Titone.
But she said that effort, which culminated in Senate Bill 25-318, was unsuccessful.
"They're more interested in trying to get the law to go away altogether,” said Titone.
Dr. Kelly Kinnebrow, a Boulder organizational psychologist who developed Minerva, an artificial intelligence platform, testified against SB24-205 last year.
“This bill seems like it's quite a knee-jerk reaction with fear driving it,” Kinnebrew told Denver7 last year.
She said changes that were proposed in SB25-318 were more to her liking.
"It won't impact us for a good while, and that's because there are clearer carve-outs for a startup the size of ours, and that's a good thing," Kinnebrew told Denver7 on Friday. "These are important improvements to help startups get going."
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While SB25-318 didn't pass, changes to the state's AI law could still be made. The issue may be revisited if Governor Jared Polis calls a special session later this year.
Earlier this month, Polis acknowledged that changes need to be made to the law.
“Of course, we need to get those done and then we need to give sufficient time for successful implementation, so people know exactly what it is they’re complying with,” said Polis. “Whether that’s three months or a year and a half, we can figure it out.”
But that may not be necessary if Congress acts first and passes a bill barring states from regulating AI for 10 years. Morris Saunders said the Colorado Technology Association supports a 10-year federal moratorium.
“The fact remains Colorado is still the only state in the nation with this level of AI regulation in its laws,” said Morris Saunders. “SB205 puts Colorado jobs and economic growth at risk, and that’s why similar bills have been rejected or vetoed in other states. Without critical changes, SB205 will have a tremendous impact on Colorado’s tech industry, an industry that's vitally important to our state's economy, contributing over $100 billion to Colorado’s economy each year and accounting for 10 percent of our state’s total employment. There’s just too much at stake for Colorado’s economy."
The federal AI moratorium is a provision in the Republican budget bill Congress is considering. It’s unclear if the provision will survive in the U.S. Senate.
A Senate rule known as the Byrd Rule prohibits proposals that are not directly related to the budget from being part of a reconciliation bill. It will be up to the Senate parliamentarian to determine whether the AI provisions violate the Byrd Rule.
