New York has become the second U.S. state to implement significant AI safety legislation, following Governor Kathy Hochul’s signing of the RAISE Act.
Though the RAISE Act was passed by state lawmakers in June, Governor Hochul initially sought to reduce its scope after pressure from the tech sector. According to The New York Times, she eventually signed the bill in its initial form, with legislators committing to implement her proposed modifications in the upcoming year.
Under this legislation, major AI developers must disclose details regarding their safety procedures and inform the state of any safety incidents within 72 hours. Furthermore, a new department will be established within the Department of Financial Services specifically for overseeing AI advancements.
Companies found neglecting to provide safety reports or providing inaccurate information face fines of up to $1 million, with subsequent violations incurring penalties of $3 million.
In September, California Governor Gavin Newsom enacted comparable safety legislation, a move that Governor Hochul cited in her official statement.
Hochul stated, “This legislation advances California’s recently established guidelines, establishing a consistent standard among the nation’s top tech states, particularly as the federal government delays in enacting sensible public protection regulations.”
Andrew Gounardes, a State Senator and co-sponsor of the bill, declared that “Big Tech believed they could manipulate their way into defeating our bill. We thwarted their efforts and enacted the most stringent AI safety law nationwide.”
OpenAI and Anthropic both endorsed New York’s legislation, simultaneously advocating for federal oversight. Sarah Heck, Anthropic’s head of external affairs, informed the NYT, “The enactment of AI transparency laws by two of the nation’s largest states underscores the vital importance of safety and ought to motivate Congress to expand upon these initiatives.”
However, not all segments of the tech industry have shown similar enthusiasm. A super PAC, supported by Andreessen Horowitz and OpenAI President Greg Brockman, plans to contest Assemblyman Alex Bores’ position, who co-sponsored the bill alongside Gounardes. Bores remarked to reporters, “I value their directness on the matter.”
This development follows President Donald Trump’s signing of an executive order instructing federal bodies to oppose state AI regulations. This directive, supported by Trump’s AI advisor David Sacks, represents the Trump Administration’s most recent effort to limit state authority over AI regulation and is anticipated to face legal challenges.
The recent episode of the Equity podcast also featured a discussion on Trump’s executive order and the involvement of Sacks and a16z in resisting state AI regulation.