Colorado Dems split on AI regulations ahead of special session
Add Axios as your preferred source to
see more of our stories on Google.

Illustration: Natalie Peeples/Axios
In a special legislative session that starts today, Colorado lawmakers are poised to answer one of the thorniest questions about artificial intelligence: Who's liable when it goes wrong?
Why it matters: Big Tech, including Amazon and Meta, and policymakers in other states are closely watching to see where Colorado sets the bar for its first-in-the-nation AI regulations.
Catch up quick: The guardrails put into law in 2024 are set to take effect next February. They would prohibit discrimination by algorithms in high-risk areas — such as health care, education, employment, housing, insurance and finance — and require greater transparency when used.
Yes, but: Colorado Gov. Jared Polis reluctantly signed the bill, but now he is joining tech and finance industry executives in expressing concern that the regulations could hamper innovation.
The latest: The Democratic legislative majority at the Capitol is split on how to best hold AI creators and companies using the technology accountable, and in a rare scenario, plans to present rival bills.
Zoom in: The original bill's sponsors drafted legislation that simplifies current rules, while still requiring consumer disclosures and holding developers and companies accountable.
- "The bill simply says that if technology is used to make major decisions about your life, you should know about it," said Rep. Jennifer Bacon (D-Denver) at a Wednesday rally in support of the legislation.
A competing bill, led by moderate Democrats, is drawing bipartisan support. It would allow the state attorney general to pursue litigation against AI creators and deployers under the state's existing consumer protection laws, but limit individual lawsuits.
- Bill sponsor Rep. William Lindstedt (D-Broomfield) told the Denver Post the bill tries to "find a middle ground that protects consumers and also protects our innovative economy here in Colorado."
Between the lines: It's unclear where Polis stands on the legislation.
- In a recent interview, he told Axios Denver he wants "to prevent discrimination from any source [including AI]… but make sure that this is a law that works for consumers and for our state."
The other side: Two Republican bills also are set for introduction during the special session. One would repeal the original law, while the other would narrow the regulations to AI systems that make employment or public safety decisions. Neither is expected to advance.
