New York Governor Kathy Hochul signs RAISE Act to regulate AI safety

In a significant move for artificial intelligence regulation, New York Governor Kathy Hochul has officially enacted the RAISE Act, making the state the second in the nation to introduce comprehensive AI safety legislation. The bill, passed by state lawmakers in June, faced pressure from the tech sector, leading Hochul to propose amendments to lessen its scope. However, she ultimately chose to sign the original version, with plans to revisit her proposed changes next year. The RAISE Act mandates that major AI developers disclose their safety protocols and report any safety incidents to the state within a tight 72-hour window. Additionally, a new office will be established within the Department of Financial Services to oversee AI developments. Companies that neglect to file safety reports or provide misleading information could face fines of up to $1 million, with repeat offenders potentially incurring penalties of $3 million. This legislation follows a similar safety bill signed by California Governor Gavin Newsom in September, which Hochul highlighted in her announcement. "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," she stated. State Senator Andrew Gounardes, a key sponsor of the bill, expressed satisfaction with the outcome, stating, "Big Tech thought they could weasel their way into killing our bill. We shut them down and passed the strongest AI safety law in the country." Major players in the AI sector, including OpenAI and Anthropic, have endorsed New York’s legislation, while also calling for federal action. Anthropic’s head of external affairs, Sarah Heck, remarked to the New York Times, "The fact that two of the largest states in the country have now enacted AI transparency legislation signals the critical importance of safety and should inspire Congress to build on them." However, not all tech industry figures are in favor of these regulations. A super PAC backed by Andreessen Horowitz and OpenAI President Greg Brockman is reportedly preparing to challenge Assemblyman Alex Bores, who co-sponsored the bill. Bores acknowledged their straightforward approach in addressing the legislation. This development follows President Donald Trump’s recent executive order directing federal agencies to contest state-level AI laws. Supported by Trump’s AI czar David Sacks, this order represents another effort by the Trump Administration to limit state authority over AI regulation, which may face legal challenges in the future. Discussions surrounding Trump's order and the influence of Sacks and a16z on opposing state regulations were also featured in a recent episode of the Equity podcast.