New York Enacts RAISE Act

What happened

New York Governor Kathy Hochul enacted the Responsible AI Safety and Education (RAISE) Act, introducing stringent AI safety regulations. The Act mandates large AI developers, defined by models requiring substantial computational power or costing over $100 million to train, to provide transparency on safety protocols and report safety incidents within 72 hours. Developers must create and maintain written safety protocols, submitting redacted versions to the Attorney General and Division of Homeland Security, and implement safeguards against critical harms. An oversight office within the Department of Financial Services will assess developers, with civil penalties up to $10 million per violation, or $30 million for subsequent violations.

Why it matters

This legislation introduces significant operational constraints for large AI developers, increasing the burden on compliance, legal, and engineering teams. It establishes new requirements for proactive safety protocol development, incident reporting within a tight 72-hour window, and ongoing oversight by the Department of Financial Services. The potential for substantial civil penalties, up to $30 million for repeat violations, raises due diligence requirements for risk management and necessitates robust internal controls to ensure adherence to the new transparency and safety mandates.