Colorado’s much-debated artificial intelligence (AI) law has hit another roadblock. Lawmakers have agreed to delay its implementation after pushback from businesses, tech leaders, and even some public entities who warned that strict liability rules could hurt jobs and drive companies out of the state.

The law, first passed in 2024, requires AI developers and deployers to guard against discrimination in algorithm-based decisions—such as hiring, housing, or access to healthcare—and to provide clear disclosures on how such systems work. Supporters said it was a landmark move to hold AI accountable.

But a proposed update to the law, Senate Bill 4 (SB 4), introduced this year by Senate Majority Leader Robert Rodriguez, ran into fierce opposition. Industry leaders argued that making both developers and users jointly liable for AI decisions would make Colorado the only state with such a high legal risk—scaring businesses away and stifling innovation.

After days of heated debate, lawmakers scrapped the overhaul and instead voted to delay the law’s enforcement from February 1 to June 30, 2026. The goal is to buy more time for negotiations and find a compromise that protects consumers while keeping Colorado attractive for business.

“This delay buys us that time,” said Sen. Jeff Bridges of Greenwood Village. “We’ve made more progress in the past few days than in the past two years.”

Still, not everyone is happy. Some progressive lawmakers criticized the move as a win for Big Tech, accusing companies of using money and influence to water down accountability measures. Rep. Brianna Titone, one of the original sponsors of the law, even pulled her support from the bill in protest.

For now, the debate continues. Lawmakers, consumer advocates, and industry leaders are expected to resume talks in the coming months, hoping to strike a balance between innovation and accountability before the next regular session begins in January.