Colorado AI Law Faces Preliminary Injunction

Colorado’s landmark AI law is facing new complications. Previously, I wrote about possible efforts to rewrite the law before the Colorado legislative session ends on May 13th. Now, a federal court issued a preliminary injunction against the state, adding to the uncertainties about the law’s future. This injunction bars the state from bringing enforcement actions under the law until its constitutionality can be determined by the courts. A recent Fisher Philips memo discusses the ruling:

“Without weighing in on the substantive arguments above, the court granted a temporary restraining order to block the state from enforcing or investigating alleged violations of the law. Any actions taken by companies on or before 14 days after the date the court issues a final ruling on the expected motion for a preliminary injunction will not be subject to the Colorado law.

We expect to see the opponents soon file a more thorough request to block the law altogether, regardless of whether state lawmakers amend the law. The court said xAI and the DOJ should file new motions within 28 days after lawmakers pass amended legislation or if the state AG issues final regulations implementing the law.”

The memo notes that plaintiffs will likely seek further injunctive relief blocking the entire law, not just enforcement actions. In an unorthodox move, the Colorado Attorney General actually advocated on the side of the Plaintiffs. The AG argues that the court should issue the injunction, given the law’s potential rewrite. Overall, the law appears to lack political support as written. However, there isn’t a consensus on how to move forward. Absent action from the legislature or the courts, the current version of the law is set to enter force on June 30. Although the effective date is looking unlikely, given recent events.