Monday, August 3, 2026

Policy & Regulation

New York becomes second state to enact major AI safety law

New York Governor Kathy Hochul signed the RAISE Act, making the state the second in the U.S. to enact major AI safety legislation requiring incident reporting.

New York becomes second state to enact major AI safety law

New York has officially become the second U.S. state to enact major AI safety legislation, following Governor Kathy Hochul’s signing of the RAISE Act into law. State lawmakers originally passed the RAISE Act in June 2025, following a similar safety bill signed by California Governor Gavin Newsom in September 2025. The new legislation mandates that large AI developers publish information about their safety protocols and report safety incidents to the state within 72 hours. To enforce compliance, the state can fine companies up to $1 million for failing to submit reports or making false statements, with subsequent violations carrying a fine of $3 million. Governor Hochul noted that the law builds on California’s framework to establish a unified benchmark among the country’s leading tech states while the federal government lags behind.

Industry reaction to the legislation is split. AI developers OpenAI and Anthropic expressed support for the transparency measures. Sarah Heck, Anthropic’s head of external affairs, stated that the enactment of AI safety legislation by two of the largest states in the country signals the critical importance of safety and should inspire Congress to build on them. However, other factions in the tech sector are actively opposing the bill. A super PAC—a political action committee that can raise unlimited sums of money—backed by venture capital firm Andreessen Horowitz and OpenAI president Greg Brockman is looking to challenge Assemblyman Alex Bores, a co-sponsor of the bill. In response to the opposition, Bores stated that he appreciates how straightforward they are being about it. Meanwhile, state senator and bill sponsor Andrew Gounardes remarked, “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.”

The state-level regulation faces immediate friction from the federal government. President Donald Trump has signed an executive order directing federal agencies to challenge state AI laws. The order, which is backed by Trump’s AI czar David Sacks—an informal title for a government official overseeing AI policy—represents an effort to curtail the ability of states to regulate AI. However, the executive order will likely be challenged in court.

Why it matters

The RAISE Act creates a unified benchmark among leading tech states, signaling the growing importance of AI transparency even as the federal government faces challenges from the Trump administration.