New York Governor Kathy Hochul has signed the RAISE Act into law, making New York the second U.S. state to pass wide-ranging artificial intelligence safety legislation. The move follows months of debate, industry lobbying, and negotiations over how far state governments should go in regulating advanced AI systems.
The New York State Legislature passed the RAISE Act in June. After lobbying from technology companies, Hochul proposed revisions intended to narrow the bill’s scope. According to The New York Times, Hochul ultimately agreed to sign the original version of the legislation, while lawmakers committed to considering her requested changes during the next legislative session.
Under the law, large AI developers operating in New York will be required to publicly disclose information about their safety practices and risk management processes. Companies must also report AI-related safety incidents to the state within 72 hours. The legislation establishes a new office within the New York Department of Financial Services to oversee AI development and compliance.
The RAISE Act includes enforcement provisions allowing the state to fine companies that fail to submit required safety reports or that provide false information. Penalties can reach up to $1 million for an initial violation and up to $3 million for repeat offenses.
Hochul referenced recent developments in California when announcing the signing. California Governor Gavin Newsom approved a similar AI safety and transparency bill in September. Hochul said New York’s law aligns with California’s approach and establishes a shared standard among states with large technology sectors.
State Senator Andrew Gounardes, a co-sponsor of the bill, said lawmakers resisted efforts by major technology firms to block the legislation. In a post following the signing, Gounardes said the bill represents the strongest AI safety framework enacted at the state level.
Several major AI companies welcomed the law while reiterating calls for federal action. OpenAI and Anthropic both expressed support for New York’s measure and argued that national legislation is still needed. Anthropic’s head of external affairs, Sarah Heck, told The New York Times that the passage of AI transparency laws in two of the country’s largest states highlights the urgency of safety standards and should motivate Congress to act.
Other parts of the technology sector have responded more critically. A super PAC supported by Andreessen Horowitz and OpenAI president Greg Brockman is seeking to challenge Assemblyman Alex Bores, who co-sponsored the bill alongside Gounardes. Bores told reporters he welcomed the transparency of the opposition’s approach.
The New York law also arrives amid federal pushback against state-level AI regulation. President Donald Trump recently signed an executive order directing federal agencies to challenge state AI laws. The order is supported by Trump’s AI adviser David Sacks and is expected to face legal challenges over states’ authority to regulate emerging technologies.
Featured image credits: Metropolitan Transportation Authority via Wikimedia Commons
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