Colorado Gov. Jared Polis is calling on state lawmakers to attend a special legislative session next week to reevaluate the implementation of artificial intelligence regulations he signed into law last year.
The Colorado Artificial Intelligence Act (CAIA), signed by Gov. Polis in May 2024, was the second-largest piece of state-level regulation to be passed into law, impacting predictive AI systems with an implementation date set for February 2026.
Requirements outlined in the act require that both those developing and deploying the AI take necessary steps to prevent algorithmic discrimination while making disclosures about those systems that are “high-risk” and used to make “consequential decisions” in things such as healthcare and housing.
Last Wednesday, Gov. Polis called for the special session, noting that the Federal government’s budget for fiscal year 2026 would impact the state’s budget and ability to fund certain programs and legislation.
Among addressing other fiscal issues, the session will address “the impending and costly implementation” of the AI legislation, officials from the governor’s office said.
“Unlike Congress, which has made the federal deficit and debt worse, Colorado actually has to balance our budget,” said Gov. Polis in a statement. “We have a responsibility to deliver a balanced budget to Coloradans, so after careful consideration, I am calling the General Assembly to reconvene to find the best possible solution to the havoc H.R.1 has wreaked on Colorado’s budget.”
Colorado’s legislation has been considered controversial as AI developers have said that a patchwork of state laws makes innovation difficult while others have urged for more consumer protections, warning against the dangers of unregulated AI.
A 10-year moratorium on state AI laws was proposed in Congress’s reconciliation bill for FY26, but was ultimately rejected after the Senate voted 99-1 to remove the provision.
Despite leading one of the few states in the country to have successfully passed large-scale AI legislation, Gov. Polis backed Republicans’ plans to place a pause on state-level regulation.
“Unfortunately, it has become increasingly clear that the application of [the CAIA] inadvertently imposes high costs on the State, local governments, and covered businesses,” reads a memo from Gov. Polis’s office.
“I am asking the General Assembly to work toward solutions that reduce the fiscal and negative economic impact, and streamline the requirements of [CAIA] so that it meets the objectives of consumer protection and anti-discrimination while being simpler and less expensive to implement, and to consider providing additional time for implementation,” continues the memo.