When the passed in May 2024, it made . The law was the in the U.S. It was a comprehensive attempt to govern 鈥渉igh-risk鈥 artificial intelligence systems across various industries before they could cause real-world harm.
Gov. Jared Polis signed it 鈥 but now, less than a year later, the governor is supporting a . Colorado lawmakers have to June 2026 and are seeking to repeal and replace portions of it.
Lawmakers face pressure from the , and the practicalities related to the .
What Colorado does next will shape whether its early move becomes a model for other states or a lesson in the challenges of regulating emerging technologies.
I study how and democratic accountability. I鈥檓 interested in what Colorado鈥檚 pioneering efforts to regulate AI can teach other state and federal legislators.
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The first state to act
In 2024, Colorado legislators decided not to on nationwide AI policy. As Congress due to , states have increasingly taken the lead on shaping AI governance.
The Colorado AI Act defined 鈥渉igh-risk鈥 AI systems as those influencing consequential decisions in employment, housing, health care and other areas of daily life. The law鈥檚 goal was : Create preventive protections for consumers from algorithmic discrimination while encouraging innovation.
Colorado鈥檚 leadership on this is not surprising. The state has a climate that embraces and a . The state positioned itself at the frontier of AI governance, and from privacy frameworks such as the . With an initial effective date of Feb. 1, 2026, lawmakers gave themselves ample time to refine definitions, establish oversight mechanisms and build capacity for compliance.
When the law passed in May 2024, policy analysts and advocacy groups hailed it as a breakthrough. Other states, including Georgia and Illinois, , though those proposals did not advance to final enactment. The law was described by the as the 鈥渇irst comprehensive and risk-based approach鈥 to AI accountability. The forum is a nonprofit research and advocacy organization that develops guidance and policy analysis on data privacy and emerging technologies.
Legal commentators, , noted that Colorado created robust AI legislation that other states could emulate in the absence of federal legislation.
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Politics meets process, stalling progress
Praise aside, passing a bill is one thing, but putting it into action is another.
Immediately after the bill was signed, warned that the act could create heavy administrative burdens for startups and deter innovation. Polis, in his signing statement, cautioned that 鈥溾 might slow economic growth. He urged legislators to revisit portions of the bill.
CBS News Colorado reports on state lawmakers racing to replace the state鈥檚 artificial intelligence law before February 2026.
to reconsider portions of the law. to amend or delay its implementation. pressed for narrower definitions and longer timelines. All the while, fought to preserve the act鈥檚 protections.
Meanwhile, other states watched closely and changed course on sweeping AI policy. Gov. Gavin Newsom . Meanwhile amid a veto threat from Gov. Ned Lamont.
Colorado鈥檚 early lead turned precarious. The same boldness that made it first also made the law vulnerable 鈥 particularly because, as seen in other states, .
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From big swing to small ball
In my opinion, Colorado can remain a leader in AI policy by pivoting toward 鈥, characterized by gradual improvements, monitoring and iteration.
This means focusing not just on lofty goals but on the practical architecture of implementation. That would include defining what counts as high-risk applications and clarifying compliance duties. It could also include launching pilot programs to test regulatory mechanisms before full enforcement and building impact assessments to measure the effects on innovation and equity. And finally, it could engage developers and community stakeholders in shaping norms and standards.
This incrementalism is not a retreat from the initial goal but rather realism. Most durable policy , not sweeping reform. For example, the EU鈥檚 AI Act is rather than all at once, according to legal scholar Nita Farahany.
A video from EU Made Simple explains the EU鈥檚 AI regulation, which was the first in the world.
Effective governance of complex technologies requires iteration and adjustment. The same was true for , and .
In the early 2010s, social media platforms grew unchecked, . Only after extensive research and did governments begin .
Colorado鈥檚 AI law may represent the start of a similar trajectory: an early, imperfect step that prompts learning, revision and eventual standardization across states.
The core challenge is striking a workable balance. Regulations need to protect people from unfair or unclear AI decisions without creating such heavy burdens that businesses hesitate to build or deploy new tools. With its thriving tech sector and pragmatic policy culture, Colorado is well positioned to model that balance by embracing incremental, accountable policymaking. In doing so, the state can turn a stalled start into a blueprint for how states nationwide might govern AI responsibly.
, Assistant Professor of Practice, Daniels College of Business,
This article is republished from under a Creative Commons license. Read the .
