TITLE: New York Governor Signs AI Safety Bill as Second State Action

New York Enacts AI Safety Regulations

New York Governor Kathy Hochul signed the Responsible Artificial Intelligence Safety and Enforcement (RAISE) Act into law on December 20, 2025, making the state the second in the U.S. to implement significant legislation aimed at ensuring the safe development of artificial intelligence technologies.

The measure, passed by state lawmakers in June, positions New York alongside California in addressing AI risks at the state level, as federal regulators have yet to establish comprehensive guidelines. Hochul's signature came after months of negotiations prompted by lobbying efforts from the technology sector, which sought to moderate the bill's requirements.

Under the RAISE Act, developers of large-scale AI systems must publicly disclose their safety protocols and notify state authorities of any safety incidents within 72 hours. The law also establishes a dedicated office within the New York Department of Financial Services to oversee AI development and compliance.

Violations, including failure to submit required reports or providing false information, carry penalties of up to $1 million for initial offenses and $3 million for subsequent ones. These provisions aim to promote transparency and accountability in an industry rapidly advancing without uniform oversight.

Legislative Path and Compromises

The RAISE Act's journey through the New York Legislature was marked by contention. Initially approved in June, the bill faced pushback from tech industry representatives concerned about regulatory burdens. Hochul proposed amendments to scale back certain mandates, leading to a compromise where she signed the original version while lawmakers committed to incorporating her changes in the following year.

Hochul highlighted the legislation's alignment with California's AI safety framework, signed by Governor Gavin Newsom in September 2025. In her announcement, she stated, "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."

State Senator Andrew Gounardes, a primary sponsor, celebrated the outcome on social media, declaring, "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."

Industry Reactions and Broader Context

Responses from the tech sector were mixed. OpenAI and Anthropic voiced support for the New York law while advocating for federal action. Sarah Heck, Anthropic's head of external affairs, told 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, opposition persists. A super PAC funded by venture capital firm Andreessen Horowitz and OpenAI President Greg Brockman has launched efforts to challenge Assemblyman Alex Bores, who co-sponsored the bill with Gounardes. Bores responded to reporters, "I appreciate how straightforward they’re being about it."

The state-level initiatives occur against a backdrop of federal resistance. President Donald Trump recently issued an executive order directing agencies to contest state AI regulations, supported by his AI policy advisor David Sacks. This move represents the administration's ongoing effort to limit state interventions in AI governance and is expected to face legal challenges.

As AI technologies proliferate across sectors from healthcare to finance, the RAISE Act underscores growing calls for proactive safeguards. New York's actions may influence other states, potentially accelerating a patchwork of regulations until federal standards emerge.

The law takes effect immediately, with the new oversight office slated for operationalization in early 2026. Compliance deadlines for AI developers will be detailed in forthcoming state guidance.