Published on
December 21, 2025
New York Introduces RAISE Act, Setting New Standards in AI Legislation
New York’s RAISE Act creates strict AI safety rules, reporting, penalties and oversight, aligning with California.
In a significant development that positions New York as a leader in artificial intelligence (AI) governance, Governor Kathy Hochul has signed the RAISE Act into law. This groundbreaking legislation establishes one of the most robust state-level regulatory frameworks in the United States, highlighting the growing urgency for AI oversight amid lagging federal efforts. As federal lawmakers remain divided, New York’s decisive move is reshaping the conversation around responsible AI development.
The Core Provisions of the RAISE Act
The RAISE Act - short for Responsible AI Safety Enforcement - introduces stringent requirements for AI developers operating in New York. It outlines clear expectations for safety and accountability, setting a high bar for compliance. Key provisions include:
- Safety Protocol Disclosure: Developers must publicly disclose detailed information about their safety testing and risk mitigation strategies.
- 72-Hour Incident Reporting: Companies are required to report any safety-related incidents to state authorities within three days of discovery.
- Dedicated Oversight Office: A new AI monitoring office will be established within New York’s Department of Financial Services to enforce compliance.
- Steep Penalties: Companies found in violation of the law may face fines of up to $1 million for initial infractions, with repeat offenses carrying penalties of up to $3 million.
These measures are designed to foster transparency and accountability in the rapidly evolving AI industry.
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Political Tensions and Industry Pushback
The RAISE Act’s journey to becoming law was marked by significant political maneuvering. Although the legislation passed the state legislature in June, intense lobbying from leading tech firms led to delays. Governor Hochul eventually signed the bill after reaching a compromise with lawmakers: the original bill was passed as written, but the governor secured commitments to address her proposed changes during the next legislative session.
State Senator Andrew Gounardes, one of the bill’s key sponsors, emphasized the importance of standing firm against industry pressure. "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", he stated.
The tech industry’s response has been mixed. While companies like OpenAI and Anthropic expressed cautious support for the legislation, they also stressed the need for federal standards to prevent a fragmented regulatory landscape. Anthropic’s Sarah Heck remarked, "State actions should inspire Congress to build on them." However, others in the tech sector, including a super PAC backed by Andreessen Horowitz and OpenAI President Greg Brockman, have targeted lawmakers like Assemblyman Alex Bores, who co-sponsored the bill.
Comparisons with California’s AI Safety Law
New York’s RAISE Act is not the only state-level legislation aimed at regulating AI. California implemented similar measures earlier this year, with Governor Gavin Newsom signing a safety-focused bill in September. The two laws share several features, including transparency requirements and substantial penalties for noncompliance.
Governor Hochul highlighted the importance of coordinated efforts between the two states. "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 remarked.
| State | Legislation | Key Features | Penalties |
|---|---|---|---|
| New York | RAISE Act | Safety disclosures, 72-hour reporting, new AI office | Up to $1M ($3M repeat) |
| California | Safety Bill | Risk assessments, transparency measures | Similar penalty structure |
Broader Implications for AI Governance
The RAISE Act signals a pivotal shift in how states approach AI regulation, and it reflects growing public concern about the risks associated with unregulated AI development. As more states take action, a patchwork of regulations may emerge, creating complexities for tech companies operating across multiple jurisdictions. At the same time, these state-level efforts could prompt federal lawmakers to accelerate the creation of a unified national standard.
The coming months will test how effectively New York’s new framework can be implemented and enforced. For businesses in the AI sector, the law underscores the importance of preparing for heightened oversight. Companies are advised to ensure that safety protocols are well-documented, incident response plans are in place, and compliance budgets are adjusted to account for potential penalties.
Conclusion
With the passage of the RAISE Act, New York has set a bold precedent in AI governance, balancing the need for innovation with the imperative to protect the public. As Governor Hochul’s administration works to implement the law’s provisions, the tech industry and policymakers alike will be watching closely to gauge its impact. Whether this move inspires federal action or leads to further state-level initiatives, one thing is clear: the era of unregulated AI development is rapidly drawing to a close.
