New York’s Groundbreaking AI Safety Legislation
On June 17, 2025, New York made history by becoming the first state to enact comprehensive legislation aimed at regulating the safety of advanced Artificial Intelligence (AI) systems. The RAISE Act, which stands for Responsible Artificial Intelligence in Societal Engagement, is designed to address the risks associated with frontier AI models developed by major corporations such as OpenAI, Google, and Anthropic.
Overview of the RAISE Act
The legislation has been introduced to tackle the growing safety concerns surrounding powerful AI technologies that have the potential for far-reaching consequences. As AI systems increasingly integrate into various sectors, the urgency for effective regulation has never been more pressing.
Under the RAISE Act, AI developers are required to submit detailed safety and security assessments, which include:
- Reports on potential misuse
- Technical vulnerabilities
- Incidents involving unsafe behavior or data breaches
Companies failing to comply with these regulations could face civil penalties of up to $30 million.
Balancing Safety and Innovation
One of the notable aspects of the RAISE Act is its targeted approach. Unlike previous regulatory attempts, such as California’s vetoed SB 1047, this bill specifically focuses on companies whose AI models have been trained using over $100 million in computing resources and are made available to New York residents. This focus aims to protect smaller startups and academic institutions from excessive regulatory burdens, which could stifle innovation.
Senator Andrew Gounardes, a co-sponsor of the bill, emphasized the need for regulatory frameworks that do not crush innovation while ensuring public safety. He stated, “The window to put in place guardrails is rapidly shrinking given how fast this technology is evolving.”
Industry Reaction and Backlash
Despite its specific focus, the RAISE Act has drawn significant backlash from the tech industry. Critics, including investors and tech companies, have voiced concerns that the legislation could impose undue compliance burdens, potentially leading major firms to withhold their advanced AI products from New York residents. Anjney Midha, a general partner at Andreessen Horowitz, labeled the legislation as “yet another stupid, stupid state level AI bill.”
However, Assemblymember Alex Bores, another co-sponsor, countered these claims. He stated that the economic incentive for AI companies to remain operational in New York outweighs any potential inconvenience posed by the regulations.
Setting a National Precedent
If signed into law by Governor Kathy Hochul, the RAISE Act would establish legally binding safety and transparency requirements tailored for frontier AI systems, positioning New York as a leader in ethical AI deployment. The legislation signifies a critical step toward national standards for AI safety, potentially influencing other states and federal efforts in AI regulation.
Additionally, New York is exploring further legislation aimed at addressing algorithmic discrimination and consumer protection. The proposed NY AI Act and the Protection Act seek to regulate the use of AI in significant decision-making processes, such as employment and credit, demanding audits, opt-out rights, and human oversight.
In conclusion, New York’s RAISE Act represents a pivotal moment in the regulatory landscape of AI, balancing innovation with essential safety measures. As technology rapidly evolves, the importance of establishing clear and effective regulations becomes increasingly critical.
