DENVER, COLORADO – State lawmakers have returned to the Capitol for a special session aimed at closing a $1 billion budget shortfall, and in the process are weighing a repeal and replacement of the Colorado AI Act, recently passed in 2024. The amended legislation is the Colorado Artificial Intelligence Sunshine Act, proposed by Senate Majority Leader Robert Rodriguez. The Consumer Choice Center opposes this legislation on the grounds that it will even further limit the potential consumer benefits of AI tools and expand the burden of compliance beyond the scope of AI to most consumer tech generally.
JAMES CZERNIAWSKI, Head of Emerging Tech at the Consumer Choice Center, said of the bill,
“Last year, Colorado was the first state in the nation to pass comprehensive legislation around Artificial Intelligence. A year later, we see the state, including Governor Jared Polis and Attorney General Weiser, recognize the serious costs to businesses and their ability to deploy new products that can improve both the quality of life and choices available to consumers. The legislature has an opportunity to correct course. Unfortunately, some lawmakers are using this special session to pursue rushed and even more detrimental legislation.”
State lawmakers risk misclassifying what is considered “AI” or “high-risk” technology, and could ultimately restrict standard tools ranging from spreadsheet software to graphic design services. Hastily drafted regulations will penalize smaller businesses and tech startups, as broad language in the new bill will ultimately land developers in court. Litigation, not legislation, will determine what reasonable protections are concerning AI, and that’s not a good deal for Coloradans.
Colorado could do the following with Senate Bill 25B-0017
- Revisit in the next session with a working group to calibrate rules and liability more precisely in the interim.
- Clarify that existing state laws apply to AI, as SB25-0012 introduced by Sen. Baisley rightly acknowledges.
- Prioritize more innovation-friendly solutions, such as Utah’s AI Learning Lab and Regulatory Sandbox.
“The state legislature would be wise to reject such ham-fisted approaches and look for solutions that strike a balance between protecting consumers and allowing innovation to thrive in the Centennial State. This predictable mess serves as a reminder of why we need a strong national framework for AI policy,” Czerniawski concluded.
The Consumer Choice Center supports an innovation-first approach to technology and consumer-focused AI products. Avoiding a European mindset when it comes to AI, where firms must pre-emptively “prove” their algorithms have no biases or potential harms, will allow this sector to test and improve products that consumers value. The path Colorado is on leads to a complex labyrinth of regulations that divert resources away from tech labs and into courtrooms.
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The Consumer Choice Center is an independent, nonpartisan consumer advocacy group championing the benefits of freedom of choice, innovation, and abundance in everyday life for consumers in over 100 countries. We closely monitor regulatory trends in Washington, Brussels, Ottawa, Brasilia, London, and Geneva.
