Colorado has been at the forefront of artificial intelligence (AI) regulation, making headlines as the first state in the U.S. to pass a comprehensive AI law. But just a year after its historic signing, state officials—including Governor Jared Polis and other prominent leaders—are now urging a delay in its implementation. Their request? Push the start date from February 2026 to January 2027, giving everyone more time to get it right.
Why the Rush to Delay?
When Colorado’s AI law was signed in May 2024, it was hailed as a potential blueprint for the rest of the country. The law targets companies with more than 50 employees that use or develop AI for critical decisions—think hiring, lending, and employment. The goal: protect individuals from unfair treatment by AI systems.
However, as the dust settled, concerns bubbled up. Business leaders, technology groups, and even some consumer advocates voiced worries that the law’s requirements were too broad and too vague. For example, a small business with just over 50 employees using an AI-powered recruitment tool could find itself in legal hot water if the system’s decisions are deemed discriminatory.
The Legislative Hurdles
Despite months of negotiations and last-minute efforts, lawmakers couldn’t reach a compromise before the legislative session ended. A proposed bill to loosen the regulations and delay the law was ultimately withdrawn after facing pushback from both business and consumer groups. Now, only a special session called by the governor can change the law’s effective date.
What’s at Stake for Businesses and Consumers?
For businesses, the law introduces a new “duty of care” to ensure AI systems don’t result in unfair or discriminatory outcomes. This means companies must be vigilant about how their AI tools are designed, tested, and used. For consumers, the law promises greater protection from algorithmic bias, but some advocates argue it doesn’t go far enough.
Actionable Tips for Businesses:
- Audit your AI systems: Regularly review algorithms for potential bias or unfair outcomes.
- Document decision-making: Keep clear records of how AI tools are used in critical decisions.
- Engage stakeholders: Involve legal, technical, and HR teams in compliance planning.
- Stay informed: Monitor updates from Colorado lawmakers and industry groups.
The Bigger Picture: A Model for the Nation?
Colorado’s law is being closely watched across the U.S. As the first of its kind, it could influence how other states—and even the federal government—approach AI regulation. The debate in Colorado highlights the challenge of balancing innovation with accountability, and the need for clear, workable rules.
Frequently Asked Questions
Why are Colorado officials seeking to delay the AI law? Officials believe more time is needed to refine the law’s language and address concerns from businesses and consumer advocates about its broad and vague requirements.
Who does the Colorado AI law affect? The law targets companies with more than 50 employees that use or develop AI for critical decisions, such as hiring or lending.
What are the main criticisms of the Colorado AI law? Critics argue the law is too broad and vague, making compliance difficult for businesses, while some consumer advocates feel it doesn’t go far enough to protect individuals.
When is the AI law currently set to take effect? The law is scheduled to take effect on February 1, 2026, unless a special legislative session is called to delay it.
How could this law influence AI regulation in other states? As the first comprehensive AI law in the U.S., Colorado’s approach could serve as a model for other states and potentially shape future federal regulations.
Key Takeaways
- Colorado’s AI law is the first comprehensive regulation of its kind in the U.S.
- Officials are seeking to delay its start date to allow more time for revisions.
- The law affects companies with more than 50 employees using AI for critical decisions.
- Businesses must ensure their AI systems are fair and non-discriminatory.
- The outcome in Colorado could shape AI regulation nationwide.