New York State has taken a historic step by passing the RAISE Act (Responsible AI Strategy for the Economy)—a bill aimed at preventing advanced artificial intelligence systems from causing serious harm. The legislation sets strict safety and transparency requirements for powerful AI models developed by companies such as OpenAI, Google, and Anthropic.
Reducing AI-Driven Risk
The bill focuses on preventing extreme outcomes from AI misuse, including large-scale disasters that could lead to the death or injury of over 100 people or cause more than $1 billion in damages. This move comes amid growing concerns about the unchecked development of high-risk AI technologies.
Backed by AI Safety Experts
The legislation is supported by leading AI researchers, including Geoffrey Hinton and Yoshua Bengio, who have repeatedly warned about the potential dangers of advanced AI. If signed into law, the RAISE Act will mark the first time the U.S. has introduced legal requirements for AI safety and transparency.
What the Law Requires
If enacted, the RAISE Act will require AI companies to:
- Publish detailed safety and security reports on advanced models
- Disclose incidents involving misuse or security breaches
- Comply with transparency rules for any AI system trained with over $100 million in computing power
- Pay fines of up to $30 million for failing to follow the rules
Designed to Encourage Safe Innovation
State Senator Andrew Gounardes, who co-sponsored the bill, stated that the legislation is carefully designed not to hinder startups or researchers. He emphasized the urgency of acting now, saying, “The window to put in place guardrails is rapidly shrinking.”
Unlike California’s recently vetoed AI bill, the RAISE Act avoids controversial measures like mandatory “kill switches” and broad legal liability for AI misuse, addressing major concerns from developers and civil liberties groups.
Who Will Be Regulated?
The law targets large AI companies whose models:
- Use over $100 million in computing power during training
- Are available to New York residents
It specifically exempts smaller AI firms, academic institutions, and early-stage developers to avoid slowing innovation in those spaces.
Industry Response
Not all responses have been positive. Some in the tech sector, such as Andreessen Horowitz’s Anjney Midha, criticized the bill, calling it “another stupid, stupid state-level AI bill.” Detractors worry it could discourage companies from operating in New York.
But Assemblymember Alex Bores, another co-sponsor, countered that argument, saying, “There’s no economic reason not to operate in New York.”
What Comes Next?
The bill now heads to Governor Kathy Hochul, who will decide whether to:
- Sign it into law
- Propose changes
- Veto it
If signed, New York will become the first U.S. state to enforce legal requirements for AI transparency and safety.
Although some companies remain cautious, lawmakers argue that the RAISE Act is a necessary and balanced measure. As AI technology advances rapidly, New York aims to lead in creating responsible, forward-thinking regulation that prioritizes public safety without stifling innovation.
