PPI recently released a report arguing that regulating artificial intelligence (AI) at the state level will create a patchwork of conflicting state laws that “risks stifling innovation, raising compliance costs, and repeating the federal failures seen in data privacy regulation.” That’s why we wholeheartedly support Colorado Governor Jared Polis’ move to encourage state legislators to delay implementation of Colorado’s first-of-its-kind comprehensive state law regulating the development and deployment of AI systems.
Last year, Gov. Polis signed the bill into law. However, in his signing statement, Gov. Polis criticized the law for instituting a “complex compliance regime.” He also warned of the potential harm to innovation and competition from state-level AI laws.
The law’s implementation was originally scheduled for February 2026. Now Polis has called Colorado state lawmakers back for a special session, starting August 21, to address the state’s budget problems, including the additional financial costs of enforcing the AI law.
Moreover, the law, if implemented in its current form, could paralyze Colorado’s tech-driven economic growth, which has been the envy of policymakers around the country. Since 2019, Colorado’s internet and software industries have added more than 20,000 jobs. Further growth could be choked off if the new law diverts AI spending to other states.
Let’s hope that Gov. Polis is able to successfully address Colorado’s impending economic and fiscal squeeze from the AI law during the upcoming special session. That would be beneficial not just for Colorado but as a good example for other states considering AI regulations.
