Colorado Lawmakers Advance Rewrite of Landmark AI Law
DENVER — Colorado lawmakers are advancing a rewrite of the state’s 2024 artificial intelligence law to narrow its scope, Colorado Politics and Colorado Newsline reported, as the legislative session approaches its final days.
The new bill would scale back requirements originally imposed on developers and deployers of high-risk AI systems under SB 24-205, which Gov. Jared Polis signed into law in 2024, making Colorado the first U.S. state to enact comprehensive AI regulation.
The original law established broad obligations for companies building and using AI systems deemed “high-risk” — those making consequential decisions in areas such as employment, housing, insurance, lending and education. It required impact assessments, disclosure obligations and measures to prevent algorithmic discrimination.
The rewrite reflects a shift in the state’s approach to AI governance, narrowing the regulatory framework that drew both praise from consumer advocates and criticism from the technology industry when it was first enacted. Industry groups had argued the original law’s requirements were overly broad and could stifle innovation, while supporters maintained the guardrails were necessary to protect consumers from algorithmic harm.
Colorado’s move comes as states across the country grapple with how to regulate AI in the absence of comprehensive federal legislation. More than 40 states introduced AI-related bills in their 2025 sessions, with many looking to Colorado’s experience as a template — or a cautionary tale, according to legislative observers.
The bill’s advancement late in the session underscores the urgency lawmakers feel to refine the regulatory framework before the original law’s provisions take full effect. Colorado’s 2025 legislative session is scheduled to adjourn May 7.
The move to narrow the law could have ripple effects beyond Colorado’s borders. Several states that modeled their own AI proposals on the 2024 Colorado law may reconsider the scope of their legislation. At the federal level, congressional negotiators working on AI governance frameworks have monitored state-level experiments closely, and Colorado’s revised approach could influence the debate over whether federal standards should preempt a patchwork of state rules.
Consumer advocacy groups have expressed concern that scaling back the law could leave residents with fewer protections against biased or harmful AI systems, particularly in high-stakes decisions affecting employment and financial services.
The technology industry, meanwhile, has generally welcomed the narrower approach, arguing that more targeted regulation allows for responsible innovation while still addressing genuine risks.
If the rewrite passes both chambers and is signed by the governor, Colorado would become one of the first states to substantially amend a comprehensive AI law — a development being closely watched by policymakers, industry leaders and civil rights organizations nationwide.
