Key Points
- Governor Kathy Hochul signed the RAISE Act to regulate large AI developers.
- The law mandates publishing safety protocols and reporting incidents within 72 hours.
- First‑time violations can be fined up to $1 million; repeat violations up to $3 million.
- An oversight office will be placed within the Department of Financial Services.
- The office will issue annual reports on AI developer compliance.
- Two additional AI bills targeting the entertainment sector were also signed.
- President Trump is promoting a less restrictive national AI standard.
Governor Hochul Enacts the RAISE Act
Governor Kathy Hochul of New York signed the RAISE Act, a legislative package designed to hold large artificial intelligence developers accountable for the safety of their models. The law introduces new transparency requirements, compelling AI firms to publish detailed information about their safety protocols and to report any incidents within 72 hours of occurrence.
Enforcement and Penalties
The act also establishes a tiered penalty structure. Companies that violate the reporting rules for the first time face fines of up to $1 million, while subsequent violations can result in penalties of up to $3 million. These figures represent a reduction from earlier proposals that suggested higher fines.
Oversight Office Creation
To enforce the new rules, the RAISE Act creates an oversight office within the New York Department of Financial Services. This office will be responsible for monitoring compliance, issuing annual assessments of large AI developers, and ensuring that the transparency and safety standards are met.
Additional AI Measures
In addition to the RAISE Act, Governor Hochul signed two other pieces of AI legislation earlier in December. Those measures focus specifically on the use of artificial intelligence in the entertainment industry, though the details of those bills are not elaborated in the source material.
Federal Context
The state-level action comes amid a broader national discussion about AI regulation. President Trump has been advocating for a national standard that he describes as “minimally burdensome,” and has signed an executive order encouraging such a framework. This federal push contrasts with New York’s more stringent approach, highlighting a tension between state and national regulatory philosophies.
Source: engadget.com