Colorado stands at a pivotal moment in its technology journey. Our state built its reputation as a national leader in AI innovation through years of deliberate ecosystem building. Now, recent legislative actions threaten to undermine this hard-earned position. The question before our lawmakers is clear: will they seize this opportunity to course-correct?

In northern Colorado and Adams County, we’ve witnessed firsthand how the AI revolution is transforming our regional economies. Across our state, innovative companies are choosing our communities specifically because of Colorado’s technology-friendly reputation. In Larimer County alone, technology sector employment has grown by 25% during the past five years, bringing high-wage jobs that average $98,000 annually — significantly above the regional median income.

Weld County is primed to attract major data center investments, each valued at more than $500 million, drawn by our combination of available land, skilled workforce and previously supportive regulatory environment. In Adams County, AI technology supports new research and development in life sciences and improves health care delivery. For several decades, local companies have refined their analysis of satellite imagery using AI to address complex, data-heavy situations to enhance and protect the quality of life.

As Colorado’s AI leadership has taken hold, so too has the push for comprehensive regulation of high-risk AI systems. Last year, lawmakers responded by enacting the Colorado Artificial Intelligence Act (CAIA), which imposes significant new compliance obligations and disclosure requirements on developers and deployers of AI tools. The measure was met with widespread concern from across Colorado’s tech sector as well as business organizations and even Gov. Jared Polis. The potential consequence in limiting AI startups’ ability to expand will be steering cutting-edge investment and high-wage tech positions away to competing states with more balanced regulatory approaches.

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In response to these concerns, Gov. Polis, Attorney General Phil Weiser and bill sponsor state Sen. Robert Rodriguez sent a letter vowing to amend the CAIA in an effort to minimize unintended consequences stemming from the law’s implementation. However, with the legislative session in its final days, time is ticking to see what progress will be made on this commitment.

Stakeholders have warned if the law goes into effect as currently written Colorado risks developing a reputation as a state hostile to new technology and pushing investment and high-paying tech jobs to other states with more welcoming business climates. Colorado’s recent quantum computing investments and breakthroughs across energy and biotechnology sectors demonstrate our innovation breadth. Yet AI represents our most promising growth frontier across all industries. These innovations emerge from an extraordinarily diverse business ecosystem spanning nimble startups to global enterprises — many choosing to locate in our communities rather than traditional tech hubs. They create an ecosystem of entrepreneurs that provide new job opportunities and exciting pathways for the workforce-talent pipeline.

Our state now has a chance to craft a policy solution to serve as a model for the rest of the country as states grapple with ways to properly regulate AI while avoiding overly broad regulation that has the unintended consequence of chilling innovation and investment. Colorado’s pragmatic policy tradition runs deep, and improving the CAIA represents a golden opportunity for lawmakers to work across party lines to establish a responsible regulatory framework to strengthens our innovation leadership position for decades to come.

As business leaders representing thousands of employers across northern Colorado and the greater Adams County region, we urge our legislators to legislate thoughtfully and get this balance right. Colorado pioneered AI innovation — now let’s lead on policies that strengthen our regional innovation economies for generations to come.

Sandra Solin is issues manager for the Northern Colorado Legislative Alliance. Lisa Hough is president and chief executive of the Adams County Regional Economic Partnership (AC-REP).