Bottom Line Up Front: Governor Kathy Hochul faces a pivotal deadline to finalize key legislation aimed at regulating AI safety and business operations in New York, with significant implications for tech developers and businesses.
The Details
As New York’s legislative session closes, Governor Hochul is tasked with signing or vetoing several critical bills, including the Responsible AI Safety and Education (RAISE) Act. Scheduled for action by late December 2025, this legislation will establish the state’s first regulatory framework for frontier AI technologies. The RAISE Act mandates developers to submit comprehensive safety plans and report critical incidents within 72 hours, a requirement that surpasses existing regulations in California, particularly those outlined in California’s SB 53.
In a bid to balance innovation with public safety, Hochul has engaged in negotiations to refine the RAISE Act, ultimately adding provisions that create a new AI oversight office within the Department of Finance. This office will be responsible for overseeing compliance and fostering a safe environment for AI development, reflecting heightened scrutiny on the tech industry.
Impact
Compliance Impact
As the deadline nears, businesses in the tech sector should prepare for the following:
- Review Compliance Obligations: Companies developing AI technologies must review and potentially revise their safety plans to align with the forthcoming regulations.
- Prepare for Reporting Protocols: Establish internal processes to ensure that any critical safety incidents can be reported within the mandated 72 hours.
- Monitor Legislative Developments: Stay updated on any last-minute changes to the RAISE Act or related legislation that could affect operational compliance.
The RAISE Act positions New York as a leader in AI regulation, contrasting sharply with the current federal landscape, where efforts to standardize regulations have stalled. The outcome of Hochul’s decisions could set significant precedents for AI governance nationwide, urging compliance officers and corporate attorneys to remain vigilant.