New York sets precedent with AI safety act, impacting tech regulation nationwide

New York sets precedent with AI safety act, impacting tech regulation nationwide

New York's RAISE Act mandates AI companies disclose safety protocols and report incidents within 72 hours, but fines are capped at $1 million—a significant reduction.

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New York's new legislation, the RAISE Act, will enhance accountability for large AI developers regarding the safety of their models. Signed by Governor Kathy Hochul on Friday, the law mandates companies to disclose their safety protocols and report incidents within 72 hours. This initiative follows California's earlier adoption of similar regulations.

Initially, the proposal included hefty penalties of up to $10 million for first violations and up to $30 million for repeat offenses. However, the final version of the law reduces these fines to a maximum of $1 million for the first violation and $3 million for subsequent breaches. Additionally, a new oversight office focused on AI safety will be established within the Department of Financial Services, tasked with producing annual reports evaluating large AI firms.

Earlier this month, Governor Hochul also enacted two other AI-related laws that pertain to the entertainment sector. Concurrently, former President Trump has been advocating against state-level AI regulations, recently issuing an executive order aimed at establishing a "minimally burdensome national standard."

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