Colorado is on the verge of becoming the first state with a sweeping artificial intelligence law. The Colorado Artificial Intelligence Act is set to take effect in February 2026, but lawmakers are already debating whether to rewrite key provisions. Two competing bills—one by Senator Robert Rodriguez and another by Representative Lindstedt—take very different approaches. The outcome will decide how much responsibility employers bear when using AI in hiring and workforce decisions, and how much transparency job seekers can expect.

Colorado’s AI Law: Current Employer Obligations

Under the original law, employers using “high-risk” AI systems—those affecting jobs, housing, education, or credit—face one of the most comprehensive compliance regimes in the country. They must conduct annual risk assessments, monitor bias, notify candidates when AI is used, and provide explanations for adverse decisions. Employers are also expected to allow human appeals and publish statements describing their safeguards. For businesses, this framework represents a major shift in accountability, with the Colorado Attorney General empowered to enforce violations. But both new bills could reshape these rules dramatically.

Rodriguez vs. Lindstedt: Two Competing Paths

Senator Rodriguez’s proposal, known as the Colorado Artificial Intelligence Sunshine Act, emphasizes transparency and consumer rights. It would require detailed disclosures before and after AI influences a hiring decision, including which data points shaped the outcome. Crucially, it also introduces joint liability between developers and employers, holding both accountable for harms caused by AI tools. By contrast, Representative Lindstedt’s bill takes a lighter approach, focusing only on real-time disclosures when candidates interact with AI systems, such as chatbots. It delays enforcement until 2027 and avoids joint liability, but still treats failures as deceptive trade practices.

Why Employers Should Care About Colorado’s AI Debate

For employers, the key takeaway is that AI accountability is here to stay—the debate is about how much and how fast. Whether lawmakers choose broad risk management requirements or narrow disclosure rules, companies must map out where AI is used in hiring and ensure they can explain its role. Waiting to act could be risky, as both bills send the same message: transparency, fairness, and accountability are non-negotiable in the age of automated decision-making. Employers that prepare now—by documenting systems, clarifying vendor responsibilities, and prioritizing fairness—will be better positioned no matter which version of the law moves forward.