Local leaders warn new AI law could harm Colorado innovation

By Seth Klamann | The Gazette

While filling the $800 million gap in the state budget is a significant part of the special session set to go underway this morning at the state Capitol, the battle over artificial intelligence regulations is quickly taking center stage, with mayors from three major cities weighing in.

In a letter, Denver Mayor Mike Johnston, Colorado Springs Mayor Yemi Mobolade and Aurora Mayor Mike Coffman called on state legislators to intervene and stop Senate Bill 205 from going into effect as planned on Feb. 1, 2026, arguing they fear it would deter companies and jobs from coming to Colorado, not to mention millions of dollars in implementation expenses. 

“As mayors of the three largest cities in Colorado, with different political affiliations, we are speaking with one voice today because Colorado cannot afford SB24-205 to take effect in its current form,” the mayors said.

The legislature passed SB 205 in the 2024 session and Gov. Jared Polis reluctantly signed it into law. At the time, assurances were made that a task force would be formed in 2025, and concerns brought up by the business community and the Attorney General’s Office would be addressed by amending the new law. 

Nothing was passed in the regular session — and the bill remained on track to take affect.

When Polis announced the Aug. 21 special session, he called on the state legislature to address the $800 million shortfall and tackle artificial intelligence regulation.

In their letter, Coffman, Johnston and Mobolade stressed that the problems in SB 205 are not partisan, noting that schools, businesses, hospitals and consumer advocates agree that amendments are needed to improve the bill “to the benefit of consumers and innovation.”

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