Governor Kathy Hochul has enacted the RAISE Act, making New York the second state in the nation to pass significant artificial intelligence safety regulations. While state legislators approved the bill in June, lobbying efforts from the technology sector led Hochul to propose scaled-back revisions. According to reports, the governor ultimately committed to signing the original version, with lawmakers agreeing to incorporate her suggested adjustments in the coming year.

The legislation will mandate that major AI developers disclose details about their safety practices and notify the state of any safety incidents within 72 hours. Additionally, it establishes a new office under the Department of Financial Services dedicated to overseeing AI advancements. Companies that neglect to submit required safety reports or provide misleading information could face fines reaching $1 million, with penalties increasing to $3 million for repeat offenses.

In her announcement, Hochul pointed to similar action taken in California, where Governor Gavin Newsom signed a comparable safety bill in September. “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 stated.

State Senator Andrew Gounardes, a primary sponsor of the bill, celebrated the outcome in a social media post: “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.”

Leading AI firms OpenAI and Anthropic have voiced support for New York’s legislation while simultaneously advocating for federal standards. Sarah Heck, Anthropic’s head of external affairs, remarked, “The fact that two of the largest states in the country have now enacted AI transparency legislation signals the critical importance of safety and should inspire Congress to build on them.”

However, not all industry responses have been favorable. A super PAC supported by Andreessen Horowitz and OpenAI President Greg Brockman is reportedly targeting Assemblyman Alex Bores, who co-sponsored the bill with Gounardes. Bores responded to the political challenge by saying, “I appreciate how straightforward they’re being about it.”

This state-level action follows an executive order signed by President Donald Trump that instructs federal agencies to contest state AI regulations. Backed by Trump’s AI advisor David Sacks, the order represents the administration’s latest effort to limit states’ regulatory authority over artificial intelligence—a move expected to face legal challenges.