New York Governor Kathy Hochul has signed the RAISE Act into law, making New York the second state in the country to pass sweeping artificial intelligence safety legislation.

State lawmakers originally passed the bill in June. After heavy lobbying from the tech industry, Hochul proposed revisions to scale back the legislation. According to the New York Times, Hochul ultimately agreed to sign the original version of the bill while lawmakers committed to revisiting her proposed changes next year.

The RAISE Act requires large AI developers operating in New York to publicly disclose details about their safety protocols and report serious AI related incidents to the state within 72 hours. The law also establishes a new office within the New York Department of Financial Services dedicated to monitoring AI development and enforcement.

Companies that fail to submit required safety reports or provide false information can face fines of up to $1 million. Repeat violations can result in penalties of up to $3 million.

Hochul referenced California’s recent AI safety law when announcing the signing, positioning New York and California as the leading states shaping AI oversight in the absence of federal action.

“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,” Hochul said. “New Yorkers deserve common sense protections as AI becomes more powerful and more widespread.”

State Senator Andrew Gounardes, one of the bill’s sponsors, took a more confrontational tone. In a public post, he said major tech companies attempted to derail the legislation through lobbying efforts but failed. He described the RAISE Act as the strongest AI safety law passed in the United States so far.

Support for the law has not been uniform across the tech industry. Both OpenAI and Anthropic publicly backed the bill while also urging Congress to move faster on federal AI regulation. Anthropic’s head of external affairs, Sarah Heck, told the New York Times that the passage of AI transparency laws in two of the country’s largest states should push lawmakers in Washington to act.

At the same time, opposition has emerged from powerful venture interests. A super PAC backed by Andreessen Horowitz and OpenAI President Greg Brockman is reportedly preparing to challenge Assemblyman Alex Bores, who co sponsored the bill. Bores responded publicly by saying he appreciated how direct the opposition had been.

The law also arrives amid escalating tension between states and the federal government. President Donald Trump recently signed an executive order directing federal agencies to challenge state level AI regulations. The order, backed by Trump’s AI policy lead David Sacks, is expected to face legal challenges and has intensified debate over whether states should be allowed to regulate AI independently.


What This Means for Everyday People

For the public, the RAISE Act signals a shift toward transparency and accountability as AI systems become more embedded in daily life. From automated decision making to financial services and healthcare tools, the law aims to ensure companies disclose risks, respond quickly to failures, and face consequences when systems cause harm. While legal battles are likely, the legislation gives consumers clearer guardrails at a moment when AI is moving faster than national regulation.


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President Donald Trump signed an executive order on Thursday, aiming to centralize AI regulation at the federal level and challenge state laws that impose varying rules on artificial intelligence. Titled “Ensuring a National Policy Framework for Artificial Intelligence,” the order directs federal agencies to set up task forces to identify and potentially contest state AI laws, with the Commerce Department given 90 days to evaluate rules considered “onerous.”

While the administration frames the order as a solution to the patchwork of state laws, legal experts warn it could leave startups in legal limbo. Companies navigating differing state and federal regulations may face extended court battles, creating uncertainty for small and mid-sized innovators who lack the resources to absorb legal risks.

The order instructs the Department of Justice to challenge state laws on the grounds that AI falls under interstate commerce. The Federal Trade Commission and Federal Communications Commission are tasked with exploring standards that could preempt state rules, while the administration encourages Congress to craft a uniform AI law.

Critics say the executive order may favor large tech firms, which have the funding to weather legal uncertainty, while startups and emerging AI companies face delays and compliance costs. Arul Nigam, co-founder of Circuit Breaker Labs, warned that smaller AI firms must navigate conflicting rules without clear guidance, slowing innovation.

“Big Tech and the big AI startups have the funds to hire lawyers or hedge their bets. The uncertainty hurts startups the most,” said Andrew Gamino-Cheong, CTO of AI governance company Trustible. He added that legal ambiguity could reduce adoption among risk-sensitive customers such as financial and healthcare institutions.

Supporters of a federal framework argue a single national standard could reduce complexity, but Gary Kibel, partner at Davis + Gilbert, cautioned that an executive order is not the proper vehicle to override state laws, potentially creating a regulatory “Wild West.” Meanwhile, organizations like The App Association urge Congress to act quickly to pass a comprehensive AI framework to avoid prolonged legal battles.

As state enforcement continues until courts intervene or Congress legislates, startups face a precarious balance between innovation and compliance, navigating a landscape where AI law remains uncertain.


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