The dust is just starting to settle after a high-stakes Colorado’s legislative session, but a path forward on AI regulation is still an open question.

Colorado has worked for decades to achieve its position as a global tech leader as we have seen entrepreneurs launch innovative new businesses, university incubators hatch extraordinary public-private ventures, and companies flock to our state to grow their operations.

The Pikes Peak region has been a leading destination for this innovation and investment, enabling our leading industries, such as aerospace and defense, cybersecurity, and others, to integrate emerging technologies like AI into their operations. Our skilled workforce and infrastructure are the envy of the world, and we are increasingly seeing our region’s veterans tap their military know-how to provide AI solutions to the armed forces they so honorably served.

It is no surprise that a state that has been on the cutting edge of technological advancement has also been among the first states to move forward on tech and privacy legislation.

Last year, with reservations, Gov. Jared Polis signed a first-of-its-kind measure (SB24-205) to regulate AI, kicking off a mad dash to fix the law that even the bill authors admitted needed significant modification. Since then, state lawmakers have engaged with industry leaders, consumer groups, and others on how to push this regulatory effort in a more workable direction.

Unfortunately, the legislative result of this process was a measure introduced in the 11th hour (SB25-318), which alarmed an array of stakeholders and prompted a letter from top state and federal Democratic leaders imploring the General Assembly to delay the implementation of SB24-205 and take the time to work with stakeholders to get this right. This was an extraordinary appeal from Colorado Democrats’ top brass to bill proponents to prioritize smart policy and not jeopardize the crown jewel of the state’s economy.

While this problematic legislation was shelved for the time being, the underlying issue remains unresolved.

AI regulation is too important to jam through half-baked, and policymakers need to ensure that the next bill that aims to tackle this delicate subject is formulated and considered in a thoughtful manner and strikes a balance that protects Coloradans while ensuring that we don’t impose burdensome hurdles that send investment running for the hills.

Neighboring states such as Utah, Nebraska, and Arizona would love nothing more than to see Colorado move forward with innovation-chilling legislation that torpedoes Colorado’s competitiveness and reroutes valuable jobs and capital to markets with more welcoming and coherent regulatory frameworks.

The ripple effect of ham-handed policy making in this arena is more wide-ranging than what meets the eye. For example, Colorado’s AI law applies to employers that use AI tools to sift through job applications. Companies may opt to pass over Colorado residents rather than open themselves up to liability stemming from the software these businesses use to organize resumes.

We need to be mindful of these unintended consequences so we don’t put our state and Colorado job seekers at a disadvantage.

Coloradans are known for our pragmatism and ability to tackle big challenges. While this is a complex and nuanced issue, there is fertile ground for compromise.

Let’s work together to find a sensible solution so we can preserve and build our innovation leadership.

Johnna Reeder Kleymeyer is the president and CEO of the Colorado Springs Chamber & EDC