Governor Kathy Hochul of New York recently made headlines by signing the RAISE Act into law, solidifying the state’s position as a leader in AI safety legislation. This move places New York as the second state in the U.S. to enact significant regulations surrounding artificial intelligence.
The RAISE Act was initially passed by state lawmakers in June, but after facing pressure from the tech industry, Governor Hochul proposed changes to scale back the bill. However, after deliberation, she ultimately decided to sign the original bill, with the agreement that the requested changes would be implemented next year.
Under the RAISE Act, large AI developers will be required to disclose information about their safety protocols and report any safety incidents to the state within 72 hours. Additionally, a new office will be established within the Department of Financial Services to oversee AI development activities. Companies that fail to comply with these regulations or provide false information may face fines of up to $1 million, with subsequent violations carrying penalties of up to $3 million.
Governor Hochul referenced a similar safety bill signed by California Governor Gavin Newsom in September, highlighting the importance of creating a unified benchmark for AI regulations among leading tech states. She emphasized the need for federal regulations to protect the public, as the federal government currently lacks comprehensive AI legislation.
State Senator Andrew Gounardes, one of the bill’s sponsors, celebrated the passage of the RAISE Act, stating that they were able to overcome opposition from big tech companies and establish one of the strongest AI safety laws in the country.
Major AI organizations such as OpenAI and Anthropic expressed support for New York’s legislation while also advocating for federal laws to supplement state regulations. Sarah Heck, head of external affairs at Anthropic, emphasized the critical importance of AI safety and urged Congress to build upon the progress made by New York and California.
However, not all members of the tech industry have been supportive of these regulations. A super PAC backed by Andreessen Horowitz and OpenAI President Greg Brockman is reportedly planning to challenge Assemblyman Alex Bores, a co-sponsor of the bill. This opposition comes in the wake of President Donald Trump’s executive order directing federal agencies to challenge state AI laws, a move that is expected to face legal challenges.
The debate surrounding AI regulation and the role of tech companies in shaping legislation was further discussed on the latest episode of the Equity podcast. As the landscape of AI regulation continues to evolve, it remains to be seen how states and the federal government will navigate the complex intersection of technology and safety.
