New York Governor Kathy Hochul Signs RAISE Act to Regulate AI Safety
In a significant move for tech regulation, Governor Kathy Hochul has signed the RAISE Act, establishing New York as the second U.S. state to implement major AI safety legislation.
Background of the RAISE Act
The RAISE Act was passed by state lawmakers in June, but faced amendments following intense lobbying from the tech industry. Despite these pressures, Hochul ultimately endorsed the original bill, with an understanding that requested changes would be made the following year.
Key Provisions of the RAISE Act
The law mandates that large AI developers must:
- Publish information regarding their safety protocols.
- Report any safety incidents to the state within 72 hours.
Furthermore, a new office will be established within the Department of Financial Services to closely monitor AI development. Companies that fail to comply with these reporting requirements or make false statements can incur fines of up to $1 million, escalating to $3 million for subsequent violations.
Comparative Legislation in California
This legislation follows a similar safety bill signed by California Governor Gavin Newsom in September. In her announcement, Hochul emphasized that this law builds upon California’s recently adopted framework, aiming to create a unified benchmark among leading tech states as the federal government has been slow to enact comprehensive regulations.
Reactions to the Legislation
New York state senator Andrew Gounardes, a sponsor of the bill, expressed triumph over the tech industry’s attempts to dilute the legislation, stating, “Big Tech thought they could weasel their way into killing our bill. We shut them down and passed the strongest AI safety law in the country.”
Both OpenAI and Anthropic have endorsed New York’s bill while advocating for federal legislation. Anthropic’s head of external affairs, Sarah Heck, remarked, “The fact that two of the largest states in the country have now enacted AI transparency legislation signals the critical importance of safety and should inspire Congress to build on them.”
Challenges from the Tech Industry
However, not all voices in the tech industry are supportive. A super PAC, backed by Andreessen Horowitz and OpenAI president Greg Brockman, is seeking to challenge Assemblyman Alex Bores, who co-sponsored the bill. Bores responded to this challenge by acknowledging their straightforward approach.
Federal Response to State Legislation
This legislative development occurs alongside an executive order signed by President Donald Trump, which directs federal agencies to contest state AI laws. The order, supported by Trump’s AI czar David Sacks, represents an ongoing effort by the Trump administration to limit state regulatory power over AI, which is expected to face legal challenges.
In summary, the RAISE Act marks a pivotal step in AI safety regulation, reflecting the urgency for transparent and accountable AI practices as states take the lead in the absence of federal action.
