New York's RAISE Act: A Landmark Move in AI Regulation

On December 15, 2023, New York Governor Kathy Hochul signed the Responsible AI Safety and Education (RAISE) Act, establishing comprehensive regulations for artificial intelligence (AI) development in the state. This legislation mandates that AI companies with over $500 million in annual revenue create and adhere to formal safety procedures to prevent critical harm, and report any safety incidents within 72 hours. This timeline is notably stricter than California's SB 53, which allows 15 days for reporting. The RAISE Act positions New York as a leader in AI regulation, following California's similar legislative efforts.

New York Sets AI Safety Standard With Governor Hochul's Signing of the RAISE ActNew York Passes RAISE Act on AI Safety Into LawGizmodo

The RAISE Act requires large AI developers to disclose their safety protocols and testing methods, ensuring transparency in AI operations. The New York State Department of Financial Services (DFS) will oversee compliance, establishing an office dedicated to monitoring AI development. Companies that fail to comply with reporting requirements face fines of up to $1 million for initial violations and up to $3 million for subsequent offenses. This regulatory framework aims to create a robust governance structure for AI, emphasizing accountability and risk management.

New York Passes RAISE Act on AI Safety Into LawNew York Sets AI Safety Standard With Governor Hochul's Signing of the RAISE Act

Major AI companies, including OpenAI and Anthropic, have expressed cautious support for the RAISE Act, viewing it as a step towards establishing federal standards for AI regulation. However, there is concern among smaller developers and industry advocates about the potential for a fragmented regulatory landscape, with Vanessa Day, Executive Director of the American Innovators Network, highlighting the need for a consistent federal framework to foster a competitive AI ecosystem. The law's emphasis on transparency and safety is seen as a necessary measure to protect consumers while promoting innovation.

American Innovators Network Statement On New York’s RAISE Act

The RAISE Act was signed shortly after President Donald Trump issued an executive order aimed at blocking state-level AI regulations. This order, titled "Ensuring a National Policy Framework for Artificial Intelligence," seeks to establish federal oversight of AI and includes the formation of an AI Litigation Task Force to challenge state laws. Legal experts have noted that Trump's executive order may rely on a contentious interpretation of the Constitution, potentially leading to a legal confrontation between state and federal authorities over AI governance.

GizmodoNew York Passes RAISE Act on AI Safety Into Law

Despite the support for the RAISE Act, there are dissenting views regarding its implications. Critics argue that the law could create a burdensome regulatory environment for smaller AI developers, potentially stifling competition. The lobbying efforts from political groups backed by prominent investors indicate a push against state-by-state regulations, advocating for a unified national approach to AI governance.

New York Passes RAISE Act on AI Safety Into Law

Moving forward, the DFS will issue guidance on the implementation of the RAISE Act, seeking input from industry stakeholders to clarify what constitutes a reportable AI safety incident. As New York's regulatory framework develops, it is expected to influence other states and contribute to a broader national dialogue on AI safety and governance.

New York Passes RAISE Act on AI Safety Into Law

• “New York has an important role to play in AI, specifically in enforcing laws that protect New Yorkers from harmful uses of AI.” — Vanessa Day, Executive Director, American Innovators Network

American Innovators Network Statement On New York’s RAISE Act

• “State Senator Andrew Gournardes stated that the legislation addresses community safety, economic growth, and societal impacts, according to the Governor’s office.” — State Senator Andrew Gournardes

New York Sets AI Safety Standard With Governor Hochul's Signing of the RAISE Act

The RAISE Act represents a significant step in the evolving landscape of AI regulation, balancing the need for innovation with the imperative of safety and accountability.

New York Passes RAISE Act on AI Safety Into Law