New York’s Bold AI Regulations: A New Era of Digital Governance

New York Governor Unveils New AI Agenda

New York Governor Kathy Hochul announced plans to launch a new office to oversee the implementation and enforcement of New York’s artificial intelligence (AI) and digital technology laws as part of a series of recent proposals. These moves signal that New York will remain one of the leaders among states regulating AI and technology platforms, particularly as the federal government seeks to preempt and restrict state regulation of AI.

Quick Hits

Governor Hochul’s new AI agenda includes:

  • Establishment of the Office of Digital Innovation, Governance, Integrity and Trust (DIGIT) to oversee digital safety and technology governance.
  • Advancement of legislation aimed at regulating AI-generated content and enhancing consumer privacy, including proposals to mandate labeling of provenance data and require data broker registration.

This initiative builds on a series of recent AI and technology policies in New York, positioning the state as a leader in AI governance. In her January 13, 2026, State of the State address, Governor Hochul announced a series of proposals intended to protect workers and consumers.

New York AI Agenda

Central to New York’s AI agenda, Governor Hochul is proposing to establish the new Office of Digital Innovation, Governance, Integrity and Trust (DIGIT), serving as the “central, authoritative body for digital safety and technological governance.” This office will coordinate online safety and technology governance across the state, in line with recent laws addressing online safety, social media, algorithmic pricing, AI synthetic performers, and AI chatbots.

The announcement did not provide details on the structure or authority of the new office, but it appears to function as a watchdog agency within the New York Department of Financial Services.

Additionally, the governor plans to advance legislation aimed at curbing deceptive AI-generated content, such as “deepfakes”, by requiring that such content include labeling with information on its origin and creator, termed provenance data. To combat AI-fabricated content and disinformation related to elections, the governor will propose legislation banning non-consensual deepfakes and the sharing of false information about elections.

Protecting Consumer Information

Governor Hochul also aims to introduce new measures to protect consumer information and privacy. This includes new legislation requiring data brokers operating in New York to register with the state and allowing individuals to submit a “single, centralized request” for data brokers to delete certain personal information.

Wave of New York AI Laws

The new AI agenda builds on New York’s recent wave of AI legislation and policy, including:

  • Protections for youth online
  • Rules for AI companions
  • Measures addressing AI-enabled child sexual abuse
  • Transparency in AI-enabled pricing

For instance, the Responsible AI Safety and Education (RAISE) Act was signed into law in December 2025, imposing safety and transparency requirements on developers of highly capable “frontier” AI models and creating a dedicated state oversight office. With the RAISE Act, New York joined California as a leader in regulating AI development.

The state has also enacted laws designed to increase transparency and protect consumers. In response to the rise of AI-generated content, New York will require advertisers to disclose the use of a “synthetic performer” in advertisements. Additionally, New York’s Algorithmic Pricing Disclosure Act requires companies that use algorithmic pricing to notify consumers when prices are set using their personal data.

Moreover, New York City’s Local Law 144, effective January 1, 2023, restricts the use of automated employment decision tools (AEDT). The law mandates that AEDTs be subjected to bias audits if their output is used to replace or assist discretionary decision-making and requires notification of employees and job candidates regarding the use of such tools.

Next Steps

Governor Hochul’s AI agenda for New York could create additional compliance obligations for employers, advertisers, and technology companies. However, many of the proposals may put the state at odds with the federal government, which seeks to reduce AI regulation to promote industry growth in the United States. Most significantly, President Donald Trump issued an executive order in December 2025 asserting federal preemption and challenging certain state laws regulating AI.

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