This story was produced as part of the Colorado Capitol News Alliance. It first appeared at cpr.org.
President Donald Trump’s executive order to ban states from creating robust regulations around artificial intelligence is another potential roadblock for Colorado’s first-in-the-nation AI law, which is set to go into effect next year.
Colorado Attorney General Phil Weiser said the state would challenge the order in court.
Trump’s order specifically singled out Colorado’s law as an example of a cumbersome AI regulation. The state law, passed in 2024, seeks to prevent discrimination in the AI systems businesses and governments use in making key decisions, such as hiring, education and banking.
In criticizing the law, Trump’s executive order said it, “may even force AI models to produce false results in order to avoid a ‘differential treatment or impact’ on protected groups.”
In his order, Trump said there must be a minimally burdensome national AI standard.
“A carefully crafted national framework can ensure that the United States wins the AI race, as we must,” reads the order.
The Trump administration said it would seek to restrict federal funding to states that don’t comply with his order. The order also creates an AI Litigation Task Force to “challenge state AI laws inconsistent with the policy.”
Attorney General Weiser sent a letter to congressional leaders prior to the release of the executive order writing he was dismayed that the Trump administration was threatening to withhold federal funds from Colorado because it adopted a state AI anti-discrimination law.
“To be sure, I believe Colorado’s law has much room for improvement, and I have called on Colorado’s General Assembly to revise it. But attempts by the federal government to coerce policy change through intimidation and the illegal withholding of funds are unlawful and unconstitutional. If the administration proceeds to adopt this draft order, we will again turn to the courts to defend the rule of law and protect the people of Colorado,” he wrote.
Colorado’s law was originally supposed to go into effect in February but it was delayed, as deployers, developers and privacy and consumer rights groups continue to work to find a compromise on which entity should be liable if an AI system discriminates against an individual.
Even with concerns around the state law, some state lawmakers believe Trump’s order will not survive legal challenges.
“Congress enacts laws and then those laws can supersede what states do. But an executive order is not law. And if you're trying to stop state laws with an executive order, that is not how the process works,” said Democratic Rep. Brianna Titone.
Titone plans to sponsor a bill next legislative session to tweak the law before it goes into effect. It would require developers to disclose more information to deployers on how the AI system was created and trained.
She said having a fair system that assigns the proper blame when things go wrong is important.
“Is it the developer because they didn't train it properly or didn't understand the limitations? Or is it the deployer who may have maybe not properly used the system as it was intended or not at the direction of what the developer said it could do?”
The governor’s office did not immediately respond to a request for comment on the Trump order.
Supporters of the state law say the goal is to increase transparency so people understand when an AI system is being used in a key decision in employment, government and finance. The law offers people the chance to correct their data and appeal a potentially adverse discriminatory decision against them by AI.
“Everybody needs to address, how do you deal with artificial intelligence making decisions for people that profoundly impact their lives,” said Kjersten Forseth, a Democratic political consultant with Red Rocks Strategies, who has been closely involved in negotiations on Colorado’s law. She represents consumer and workers rights groups.
“The developers I think are feeling really emboldened to push back that they don't deserve any sort of accountability and that they will fight accountability,” said Forseth.
The Colorado Technology Association is also working to craft a policy to update Colorado’s law and is participating in the Governor’s AI Policy Working Group. They have argued Colorado’s law as written is not practical and would make it difficult, especially for startups and entrepreneurs building in the AI space. CTA said Colorado should not stand alone and they are reviewing the president’s executive order and will stay engaged with state and federal leaders.
“To ensure the path forward strengthens consumer trust, supports innovation, and preserves Colorado’s competitiveness,” said Brittany Morris Saunders, president and CEO of Colorado Technology Association.
