Colorado is first state to pass broad AI legislation  

The Colorado Legislature passed the Colorado Artificial Intelligence Act (SB 205) on May 8, the last day of the state’s legislative session.  

The bill is now on Gov. Jared Polis’s desk, who has not indicated whether or not he supports it. If the governor signs the bill, Colorado will be the first state to enact broad AI legislation.  

The sponsor of SB 205, Sen. Robert Rodriguez, worked closely with Connecticut Sen. James Maroney in drafting this legislation. SB 205 closely mirrors CT SB 2, which passed the Connecticut Senate this session before dying in the House after Gov. Ned Lamont threatened to veto the bill if passed.  

The Colorado AI Act imposes both specific transparency and testing requirements and general duties of care to prevent known or reasonably foreseeable risks of algorithmic discrimination on developers and deployers of high-risk AI systems. High-risk AI systems are defined as AI systems that make or are substantial factors in making a consequential decision that has a significant effect on a consumer’s access to education, employment, financial or lending services, essential government services, health care services, housing, insurance, or legal services.  

This bill has some significant weaknesses, but it does provide important rights and protections to consumers who are subjected to high-risk AI systems. However, because the bill lacks a private right of action, enforcement will be left solely to the Attorney General.  

The Colorado AI Act could still undergo changes before it takes effect. Unlike the Connecticut bill, SB 205 gives rulemaking authority to the Colorado Attorney General to implement the bill. On top of this rulemaking authority, the bill would not go into effect until Feb. 1, 2026, after a workgroup tasked with studying SB 205’s provisions has completed its study.