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Policy & Law

New York Lawmaker Cites Industry Warnings to Push for Expanded AI Regulations

State Sen. Andrew Gounardes, sponsor of the RAISE Act, argues recent executive warnings validate state-level safety mandates amid federal inaction.

Gavin Newsom — Gavin Newsom Portrait (cropped)
Photo: State of California (Public domain) via Wikimedia Commons
⚡ The Bottom Line

The divergence between federal inaction and state-level urgency in New York highlights a growing regulatory patchwork for artificial intelligence in the United States. With the RAISE Act taking effect in January, New York will be among the first states to enforce specific safety reporting mandates on major AI firms. The upcoming legislative session in Albany will test whether there is sufficien...

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New York State Senator Andrew Gounardes, a key architect of the state’s recent artificial intelligence legislation, stated that recent warnings from AI industry leaders confirm the necessity of the regulatory framework he helped establish. Gounardes, who sponsored the RAISE Act, noted that executives who previously opposed such measures are now acknowledging the same risks regarding catastrophic harms, biological threats, and nuclear safety that the legislation was designed to address.

The RAISE Act, passed by New York lawmakers last year despite industry lobbying, is scheduled to take effect in January. It requires the largest AI companies to report safety incidents to the state and establishes penalties for violations. With President Donald Trump dismissing AI safety concerns as a "HOAX" and Congress showing little movement on the issue, state legislators are increasingly viewing New York’s approach as a potential model for national policy.

What the Left Is Saying

Democratic state officials and safety advocates argue that the lack of federal action necessitates aggressive state-level intervention. Sen. Gounardes stated, "I’m very rarely one to say, ‘I told you so’ or ‘We told you so,’ But this is exactly … the things we had warned about." He emphasized that the individuals who previously argued against regulation are now advocating for the same safety measures, noting, "Not only were we right, but some of the very same people that were telling us that we were wrong are now the ones saying that we need to be doing these things."

State Sen. Kristen Gonzalez, chair of the Internet and Technology committee, supports expanding this framework. She plans to push for a "rights-based" approach focusing on high-risk uses of AI, including algorithmic bias in employment, courts, and finance. Her proposed New York AI Act includes whistleblower protections for AI company employees. Gonzalez noted that passing multiple bills tracking liability would allow the state to "actually start fighting these companies... mitigating more in court and having a foundation to claim damages." New York Attorney General Letitia James has also urged AI workers to report safety risks via an anonymous tip line.

Gov. Kathy Hochul indicated that her administration is looking for additional state actions to reduce AI safety risks. Gounardes expressed confidence in his current agenda, stating, "They're good bills, they're important bills, they should pass as is. But I think we can go further," referring to his proposals for third-party safety audits and strengthened reporting requirements.

What the Right Is Saying

Conservative leadership, particularly President Donald Trump, has maintained that AI safety concerns are exaggerated, characterizing them as a "HOAX." This perspective aligns with the industry lobbyists who initially pushed back against the passage of the RAISE Act in New York, arguing that stringent state regulations could hinder innovation and technological advancement. The Republican-controlled White House stance suggests a preference for minimal regulatory interference, leaving the pace of AI development largely to the private sector.

While specific conservative New York lawmakers were not quoted in immediate opposition to the new proposals, the broader Republican platform continues to emphasize federal preemption or limited oversight. The absence of Congressional action on AI safety measures reflects a reluctance among many Republicans to impose new bureaucratic burdens on tech companies, favoring a market-driven approach to managing emerging risks. This stance contrasts with the progressive view that immediate legislative guardrails are essential to prevent catastrophic outcomes.

What the Numbers Show

The RAISE Act is set to become effective in January 2027. It mandates safety incident reporting for the largest AI companies operating in New York. In contrast, California Gov. Gavin Newsom has floated the idea of a special session to address AI regulation, though New York’s Legislature is not scheduled to return to Albany until January. Sen. Gounardes is sponsoring two specific bills: one requiring third-party safety audits, modeled after legislation enacted in Illinois, and another strengthening safety reporting requirements. Sen. Gonzalez has a bill pending on Gov. Hochul’s desk that would regulate AI chatbots and assign liability to their developers. These measures represent a significant expansion of the state’s regulatory scope compared to the initial passage of the RAISE Act.

The Bottom Line

The divergence between federal inaction and state-level urgency in New York highlights a growing regulatory patchwork for artificial intelligence in the United States. With the RAISE Act taking effect in January, New York will be among the first states to enforce specific safety reporting mandates on major AI firms. The upcoming legislative session in Albany will test whether there is sufficient bipartisan or supermajority support to pass additional measures like third-party audits and chatbot liability laws. Stakeholders should watch for the implementation details of the RAISE Act and any federal preemption efforts from the Trump administration as the state moves to solidify its regulatory framework.

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