Colorado AI Law Sponsor Blames Industry Money for Bill’s Demise
DENVER — Colorado’s 2024 artificial intelligence regulation law was killed by “massive amounts of money” from tech industry lobbyists, the bill’s sponsor said, according to Colorado Newsline.
The legislation, Senate Bill 24-205, had been widely regarded as one of the most ambitious state-level AI regulatory efforts in the United States when it passed the Colorado General Assembly and was signed — with notable reservations — by Gov. Jared Polis in 2024. The bill required developers and deployers of high-risk AI systems to exercise reasonable care to prevent algorithmic discrimination.
The bill’s sponsor attributed its unraveling to a concerted lobbying campaign by technology companies that poured significant resources into opposing the regulation, according to Colorado Newsline. The sponsor described the opposition as driven by “massive amounts of money” aimed at weakening or eliminating the measure’s core consumer protection provisions.
The law had faced headwinds from the start. When Polis signed SB 205 in May 2024, he issued a letter expressing concern that the bill’s broad scope could stifle innovation and urged the legislature to revisit the measure before its enforcement provisions took effect. That caveat opened the door for industry groups to press for significant changes during subsequent legislative sessions.
Colorado’s experience underscores a broader pattern playing out in state legislatures across the country, where AI governance proposals have repeatedly stalled or been diluted under pressure from well-funded industry coalitions. Similar dynamics have played out in California, where Gov. Gavin Newsom vetoed SB 1047 in 2024, and in other states where comprehensive AI regulation bills have failed to advance.
Colorado’s law had served as a model for other states considering AI regulation. Consumer advocacy groups and civil rights organizations had pointed to SB 205 as proof that meaningful state-level AI oversight was achievable, even absent federal legislation.
Congress has yet to pass comprehensive federal AI regulation, leaving states as the primary arena for AI governance in the United States. The National Conference of State Legislatures has tracked hundreds of AI-related bills introduced across state capitals, but few have survived the legislative process intact.
The tech industry has argued that a patchwork of state regulations would create compliance burdens and hinder American competitiveness in AI development, advocating instead for a federal framework — one that critics say the industry has also worked to delay.
