Lawmakers in Colorado are advancing efforts to revise one of the nation’s first comprehensive artificial intelligence laws, following the release of a new policy framework aimed at balancing consumer protection with innovation.

The recommendations, developed by a state AI policy working group, are expected to shape updates to Colorado’s 2024 AI Act, which has drawn national attention and criticism for its broad regulatory requirements on businesses and government agencies using high-risk AI systems.

“I am very grateful to the hardworking members of the Colorado AI Policy Working Group that have reached unanimous agreement on AI policy to protect consumers and support innovation in our state,” Governor Jared Polis said in a statement.

The proposed changes seek to clarify how organizations disclose the use of AI in high-impact decisions such as hiring, housing, and lending. Under the framework, companies developing AI systems would need to provide details on how their models work, including data sources and limitations.

Businesses and public agencies using AI tools would also be required to clearly inform individuals when automated systems are involved in decision-making.

The framework introduces a revised approach to liability, shifting away from assigning blame to a single party. Instead, responsibility would be shared between developers and deployers based on their respective roles in AI-driven outcomes.

Colorado’s original AI law aimed to prevent algorithmic discrimination across sectors but faced pushback from technology companies, which argued the rules could increase costs and hinder innovation. In response, lawmakers delayed enforcement until June to allow time for revisions.