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New York Governor Kathy Hochul has enacted the RAISE Act, establishing the state as the second in the United States to introduce significant regulations on artificial intelligence safety.
Legislators approved the measure in June, though industry pressure from technology firms led Hochul to suggest modifications that would have reduced its scope. In the end, she endorsed the initial version of the legislation, with state representatives committing to incorporate her amendments during the following year.
Under the new law, prominent developers of AI systems must disclose details of their safety measures and notify authorities of any safety-related events within three days. The legislation also establishes a dedicated unit inside the Department of Financial Services to oversee advancements in AI technology.
Violations, such as failing to file required reports or providing inaccurate information, could result in penalties of as much as $1 million for the first offense and $3 million for additional breaches.
California Governor Gavin Newsom approved a comparable AI safety measure in September, a development that Hochul highlighted in her statement on the signing. She noted that the New York law extends California’s approach, setting a consistent standard for innovation hubs across the nation at a time when federal efforts on basic safeguards have stalled.
One of the bill’s lead sponsors, State Senator Andrew Gounardes, celebrated the outcome by stating that major technology companies had attempted to undermine the initiative, but lawmakers prevailed in adopting what he described as the nation’s most robust AI safety requirements.
Leading AI firms OpenAI and Anthropic have voiced approval for the New York measure, while urging the adoption of nationwide rules. Sarah Heck, Anthropic’s director of external relations, emphasized that actions by two of the biggest states underscore the need for transparency in AI and should prompt federal lawmakers to advance similar protections.
Resistance persists within parts of the technology sector. A political action committee supported by venture firm Andreessen Horowitz and OpenAI executive Greg Brockman plans to oppose Assemblyman Alex Bores, who helped introduce the bill alongside Gounardes. Bores responded to the threat by welcoming the direct confrontation.
This development follows an executive order from President Donald Trump that instructs federal bodies to contest state-level AI regulations. Endorsed by Trump’s appointee on AI matters, David Sacks, the directive represents the administration’s ongoing push to limit subnational oversight of the field and is expected to face legal scrutiny in the courts.
