A technology trade group on Tuesday lauded a move by the Colorado Senate to delay the implementation of new artificial intelligence regulations originally set to take effect early next year.

Under the proposal approved by senators yesterday, the new implementation date would get delayed to June 30, 2026. In theory, that gives legislators and advocates of both sides of that debate several months to hash out changes during the regular session that starts in January before the law officially takes effect.  

The bill under consideration in this month’s special session still needs the final vote of the House. It has been amended this morning, which means that, procedurally, it needs to go back to the Senate.

“We appreciate Senator Rodriguez’s decision to delay implementation of SB24-205,” Brittany Morris Saunders, president and CEO of the Colorado Technology Association said in a statement to Colorado Politics. “This decision recognizes the complexity of artificial intelligence and the importance of building a framework that protects consumers, supports businesses, and provides clarity for policymakers.”

Saunders added: “By extending the timeline, we now have the opportunity to work collaboratively on practical solutions that strengthen consumer trust, safeguard jobs, and preserve Colorado’s competitiveness. CTA and our members are committed to being active partners in this process to ensure that Colorado leads with both innovation and responsibility.”

Between Sunday and Monday, a hoped-for deal on the Colorado General Assembly’s main proposal on artificial intelligence regulation collapsed.

Recognizing that any possibility of a deal is dead, Senate Majority Leader Sen. Robert Rodriguez, D-Denver, the author of the original law and the bill moving through the legislature this week, pushed an amendment in order to gut the measure and, instead, delay the 2024 regulation’s implementation date.

AI regulation has become the focal point of the special session, which Gov. Jared Polis convened to deal with an $800 million deficit. As it turned out, lawmakers are coalescing around the idea of using a combination of state reserves, changes to the corporate tax code to raise or preserve revenue and spending cuts to plug that $800 million hole.  

The Colorado Chamber of Commerce — which was negotiating on behalf of small businesses, hospitals, large tech companies outside of the state and Colorado based-tech companies — had pulled the plug on its efforts and told its members early Monday to contact senators to vote against the bill.

The chamber’s worries revolved around the bill’s liability language, arguing it would gut long-standing anti-discrimination protections and make developers jointly liable for discrimination caused by “deployers.”

The Rodriguez bill would have required disclosures about AI decisions on education enrollment, employment, finances, essential government services, health care, housing, insurance or legal services. The 2024 law that lawmakers are trying to amend had placed a regulatory framework aimed at — supporters said — preventing discrimination by companies that use AI to make decisions in those areas. Business and others have argued that the bill would inhibit innovation, potentially compelling companies to skip Colorado or move elsewhere if they’re already here.