Colorado lawmakers send new AI bill to the governor
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An 11th-hour rewrite of the state's controversial artificial intelligence law is headed to the governor's desk.
Why it matters: Colorado was poised to become the country's toughest AI cop, but the new bill weakens the repeals the original 2024 law before it ever took effect.
Driving the news: The Legislature approved the final measure with little pomp after a final vote in the Senate at 1:30am Tuesday.
- The legislation will, if Polis signs, require companies that use AI to provide notice to consumers when making "consequential decisions" that could lead to discrimination.
- Decisions covered include eligibility for education, employment, housing, financial services and health care, and it allows consumers to review and correct inaccurate information.
Yes, but: Senate Bill 189 no longer requires companies that use AI to explain how their systems work.
- Other language weakens the liability provisions and eliminates requirements for a risk management program and evaluations of high-risk activities.
- A last-minute amendment pushed the effective date for much of the bill to Jan. 1, 2027.
What they're saying: "Everybody lost and everybody won," Senate Majority Leader Robert Rodriguez (D-Denver), the bill's main sponsor, told the Colorado Sun.
- "We still have consumer protections. It's not as much as I would have liked. We're still the only state in the country to pass this legislation."
Catch up quick: Colorado lawmakers spent two years debating guardrails for AI, as other states watched for a possible blueprint.
- The first bill drew objections from tech firms, venture capitalists and business leaders who worried it would stymie innovation.
- The blowback led Gov. Jared Polis to form a task force to redo the law.
- Earlier this year, Elon Musk's xAI company and the Trump administration filed a lawsuit.
The other side: Now, most business leaders are content.
- The legislation "represents meaningful progress for Colorado and a more balanced path forward on AI policy … [creating] a framework that protects consumers while allowing Colorado companies to innovate, hire, and grow," Colorado Technology Association president and CEO Brittany Morris Saunders told Axios Denver in a statement.
What's next: Polis is expected to sign the bill, cementing Colorado's pivot from aggressive AI regulation to a lighter, disclosure-focused approach.