Governor Kathy Hochul has signed new legislation that will require developers of advanced artificial intelligence (AI) models to implement safety frameworks and increase transparency. The law, known as the RAISE Act (S6953B/A6453B), mandates that large AI developers must create and publish details about their safety protocols and report incidents to New York State within 72 hours of detection.
The legislation also establishes an oversight office within the Department of Financial Services (DFS). This office will be responsible for assessing major AI developers, promoting transparency, and issuing annual reports on compliance.
“By enacting the RAISE Act, New York is once again leading the nation in setting a strong and sensible standard for frontier AI safety, holding the biggest developers accountable for their safety and transparency protocols,” Governor Hochul said. “This law builds on California’s recently adopted framework, creating a unified benchmark among the country’s leading tech states as the federal government lags behind, failing to implement common-sense regulations that protect the public. I thank the leaders and members of both houses of the Legislature, as well as the bill’s sponsors, for their partnership in delivering this responsible, nation-leading approach to AI safety.”
The law gives authority to the Attorney General to bring civil actions against companies that fail to submit required reports or provide false information. Penalties can reach up to $1 million for a first violation and up to $3 million for subsequent violations.
Kaitlin Asrow, Acting Superintendent of DFS, commented: “DFS has been a leader in developing rules that are facilitating the responsible adoption of artificial intelligence by financial services companies. DFS looks forward to supporting Governor Hochul’s continued efforts to foster innovation and establish standards for the safe development of artificial intelligence models.”
State Senator Andrew Gournardes described it as “an enormous win for the safety of our communities, the growth of our economy and the future of our society. The RAISE Act lays the groundwork for a world where AI innovation makes life better instead of putting it at risk. Big tech oligarchs think it’s fine to put their profits ahead of our safety — we disagree. With this law, we make clear that tech innovation and safety don’t have to be at odds. In New York, we can lead in both.”
Assemblymember Alex Bores stated: “Today is a major victory in what will soon be a national fight to harness the best of AI’s potential and protect Americans from the worst of its harms. New York now has the strongest AI transparency law in the country. This bill moves beyond California’s SB53 in significant ways, and sets the stage for greater disclosure, learning, and legislative action in years to come. In New York, we defeated last-ditch attempts from AI oligarchs to wipe out this bill and, by doing so, raised the floor for what AI safety legislation can look like. And we defeated Trump’s — and his donors’ — attempt to stop RAISE through executive action greenlighting a Wild West for AI.”
The passage of this act aligns with other initiatives led by Governor Hochul aimed at establishing New York as a center for ethical AI development. One such initiative is Empire AI—a consortium created under her leadership—which brings together academic institutions, industry leaders, and government entities focused on advancing technology responsibly while ensuring public benefit.
