Colorado's AI bill in national spotlight

Colorado's new law regulating artificial intelligence is a national model other states are looking to emulate, even as political and industry leaders want to roll back its far-reaching impact.

Why it matters: Given the lack of movement in Washington on the issue, regulation of AI systems is falling to the states to take action.

The big picture: Interest in taming AI models is captivating lawmakers across the country and drawing packed rooms this week at the National Conference of State Legislatures annual event in Louisville, Kentucky.

• At least 18 states have some regulation and many more are exploring the idea, as experts point to Colorado's law as a starting point.

State of play: The ongoing battle in Colorado between consumer advocates and the tech industry is a case study showing why it's so difficult to put guardrails on the burgeoning technology.

• Colorado's law stands out because of its vast impact on private-sector AI uses. It requires disclosures and limits on AI used in high-risk areas, ranging from employment and lending services to housing and insurance.

Yes, but: In May, Gov. Jared Polis reluctantly signed into law new AI consumer protections because of concerns about tying the hands of the business sector's ability to use the technology.

• A month later, he authored a letter , joined by Colorado Attorney General Phil Weiser , saying the state would overhaul the law, citing complaints from companies that it's too burdensome.
• Among the critics is Bryan Leach, the CEO of Ibotta. "We want the world to know that Colorado remains the best place to start and run businesses," he told the Denver Business Journal.

The other side: Sen. Robert Rodriguez (D-Denver) defended the new law at the NCSL conference, but has agreed to explore possible changes ahead of its implementation in 2026.

• "The first one through the glass ceiling is the hardest," he told us after a panel discussion.

The bottom line: Evi Fuelle, the global policy director at Credo AI, praised Colorado's model and urged lawmakers in other states to move forward with guardrails to protect consumers.

• She compared the stakes of the debate to the unaddressed risks of social media and told lawmakers to get ahead of the curve. "Too many things were broken [with social media]. I don't think we want to take those risks" with AI, she said.