Governor Kathy Hochul has officially enacted the RAISE Act, a landmark piece of legislation that firmly positions New York as the second state in the United States to adopt far-reaching and comprehensive artificial intelligence safety laws. This action marks a decisive step in the ongoing national dialogue about the need for oversight and governance in AI development. The measure, which was initially approved by state legislators in June, faced an intense period of negotiation and revision following significant lobbying efforts by major players in the technology sector. In response to these pressures, Governor Hochul at first proposed a series of modifications aimed at narrowing the scope of the Act. However, after continued discussions and political deliberation, as reported by *The New York Times*, Hochul ultimately chose to sign the original version of the bill. In exchange, lawmakers consented to incorporate her suggested amendments in the following legislative session, allowing for a phased reconciliation of competing political and industrial concerns.
Under the provisions of the RAISE Act, developers behind large-scale artificial intelligence systems will now be mandated to publicly disclose detailed descriptions of their internal safety protocols, thereby promoting transparency and accountability throughout the AI production cycle. Moreover, these companies will be required to notify the state of any significant safety-related incidents within a strict timeframe of seventy-two hours after discovery—an obligation intended to facilitate swift governmental response and to prevent unreported AI malfunctions from escalating into broader public risks. To ensure compliance and continuous monitoring, the law also establishes a dedicated office housed within the Department of Financial Services, charged exclusively with overseeing the development, implementation, and potential societal impact of AI systems deployed within the state’s jurisdiction.
The statute provides for substantial financial penalties to deter non-compliance: companies that fail to submit the required safety reports or that are found to have misrepresented their safety data may incur fines of up to one million dollars for an initial offense, with penalties rising to as much as three million dollars for repeated violations. The introduction of this enforcement mechanism signals New York’s intention to take oversight of artificial intelligence as seriously as other forms of regulatory governance, such as those governing finance or environmental protections.
Governor Hochul, in her public remarks announcing the signing, pointed to recent developments in California as a guiding model. California’s Governor Gavin Newsom had signed comparable AI safety legislation earlier in the year, specifically in September, thereby establishing the first precedent at the state level for managing AI transparency and accountability. Hochul described New York’s law as a direct continuation of that framework, emphasizing that these initiatives together represent a new alignment among technologically advanced and economically influential states. In her words, this unified approach serves as a much-needed counterbalance to the federal government’s current inertia, as Washington continues to hesitate in adopting what she termed “common-sense regulations” designed to safeguard the public from potential AI-related harms.
State Senator Andrew Gounardes, one of the principal sponsors of the bill, took a celebratory tone in his public messages following its passage. He declared on social media that large technology companies had attempted to derail the legislation through lobbying and political pressure, but that lawmakers ultimately resisted those efforts. According to Gounardes, the resulting law represents the strongest and most comprehensive artificial intelligence safety standard in the nation, setting a high bar for subsequent state and federal action.
The initiative has garnered mixed reactions from the technology industry. On one hand, leading AI firms such as OpenAI and Anthropic have publicly supported the measure while simultaneously calling for broader federal legislation that would create a consistent national framework. Anthropic’s head of external affairs, Sarah Heck, told *The New York Times* that the fact that two of the most populous and economically significant states have now enacted AI transparency laws underscores both the urgency and the gravity of the matter. According to her, this should motivate Congress to establish federal standards that build upon the momentum created at the state level.
On the other hand, not every sector of the tech community has been equally supportive. A political action committee funded in part by venture capital firm Andreessen Horowitz and associated with OpenAI President Greg Brockman has reportedly begun seeking candidates to challenge Assemblyman Alex Bores, who co-sponsored the RAISE Act together with Senator Gounardes. Bores, when questioned about the political repercussions, merely remarked that he appreciated the straightforwardness of their opposition, implying that the legislative battle lines over AI governance remain sharply drawn.
The controversy surrounding state versus federal authority over AI regulation has become even more pronounced following a recent executive order signed by President Donald Trump. This order instructs federal agencies to actively challenge state-level AI legislation, effectively attempting to assert federal preeminence in the developing arena of AI law. The directive, supported by Trump’s designated AI advisor, David Sacks, represents a continuation of the administration’s broader effort to restrict states from independently regulating key aspects of emerging technology. Legal experts anticipate that the order will itself become the subject of court challenges, as states like New York and California seek to defend their right to enact targeted AI protections.
Discussion of the executive order and the influential roles of Sacks and venture capital firm Andreessen Horowitz in opposing state-based AI regulation featured prominently in a recent episode of the *Equity* podcast. The debate illustrates the widening ideological divide between those advocating for innovative yet accountable technological progress at the state level and those arguing that excessive regulation could stifle the very innovations that drive the AI sector forward. As the conversation continues, New York’s RAISE Act stands as a tangible testament to the state’s intention to blend innovation with responsibility—an approach that could soon redefine the contours of AI governance nationwide.
Sourse: https://techcrunch.com/2025/12/20/new-york-governor-kathy-hochul-signs-raise-act-to-regulate-ai-safety/
