New York's RAISE Act: A Bold Move to Rein in AI... or a Stifling Shackle?

Introduction to the RAISE Act

The RAISE Act, short for the Responsible Artificial Intelligence Security Executive Act, signifies a pivotal moment in the realm of legislative oversight on artificial intelligence technologies. This newly passed bill in New York is designed to elicit greater transparency and accountability from leading artificial intelligence laboratories. Aimed predominantly at companies that have significantly invested in AI model training, the legislation mandates comprehensive safety and security disclosures, along with the timely reporting of any safety incidents, thereby setting a new standard in AI governance within the state .

Originating as a legislative response to the burgeoning influence and potential risks associated with artificial intelligence, the RAISE Act underscores the importance of maintaining a balance between fostering innovation and ensuring public safety. By targeting companies that provide AI-related services to New York residents, the Act seeks to proactively address potential technology-induced disasters. This proactive measure follows in the wake of California's failed attempt to pass a similar bill, which lacked the necessary provisions like those found in the RAISE Act .

Despite its local focus, the implications of the RAISE Act reverberate nationally, as it challenges the broader tech industry's approach to regulation and transparency. By placing stringent requirements on AI entities, the act has inadvertently positioned New York at the forefront of AI safety legislation in the United States. However, it does face resistance from industry giants who argue that such regulations may impede technological progress and innovation. Thus, the RAISE Act stands as a microcosm of the global dialogue on responsible AI development and regulation .

Comparing the RAISE Act and SB 1047

The RAISE Act in New York represents a rigorous legislative attempt to ensure AI safety by demanding transparency and reporting from large AI firms. By focusing on companies utilizing over $100 million in AI investments and operating within New York, the act aims to set high standards for transparency and accountability. However, unlike California's SB 1047, which was vetoed, the RAISE Act deliberately avoids imposing direct liabilities on AI model creators for post-training harms and does not require the implementation of a kill switch in AI models. This makes it less stringent than the earlier critiqued Californian bill, yet sufficiently robust to enhance public safety without stifling innovation [TechCrunch](https://techcrunch.com/2025/06/13/new-york-passes-a-bill-to-prevent-ai-fueled-disasters/).

California's SB 1047, previously vetoed in 2024, was perceived as too restrictive by many in the tech industry, primarily due to its severe requirements that included a contentious "kill switch" for AI models. This feature was intended to allow immediate shutdown of malfunctioning AI systems. However, the RAISE Act omits such a requirement, instead concentrating on fostering transparency and ensuring companies report AI safety incidents promptly. This legislative choice reflects the legislators' understanding that while safeguards are critical, they must not obstruct the innovation ecosystem that fuels New York's burgeoning tech scene [SF Examiner](https://www.sfexaminer.com/news/technology/vetoed-california-ai-bill-inspires-similar-ny-safety-measure/article_d955b2ce-4ec2-4fad-9d71-b1fd8de7adab.html).

Impact on the AI Industry: Who is Affected?

The passage of the RAISE Act in New York has significant implications for the AI industry, especially those companies heavily invested in AI development. Large tech firms like OpenAI, Google, and Anthropic, which have poured over $100 million into computing resources for AI advancements, find themselves directly in the crosshairs of this legislation . These companies offer services that extend into New York, hence they must navigate the challenges posed by the RAISE Act's demands for transparency and reporting.

The AI industry, particularly in Silicon Valley, has expressed significant apprehension about the potential stifling of innovation due to the RAISE Act. Industry leaders argue that the stringent requirements could limit creative freedom and slow down the rapid development pace necessary to remain competitive globally . Despite these concerns, New York's legislation seeks to balance innovation with accountability, a move supported by AI safety advocates who emphasize the risks of unregulated AI growth.

Beyond the direct impact on tech giants, the RAISE Act sets a precedent that could influence legislative actions in other states. If New York successfully implements the Act's requirements, it may inspire similar regulatory efforts elsewhere, shaping the trajectory of AI policy in the U.S. . Consequently, companies across the nation are closely monitoring the developments to gauge future compliance strategies.

The bill's opposition not only reflects industry concerns but also indicates potential economic impacts such as increased compliance costs and reduced market competitiveness . While New York positions itself as a responsible hub for AI, the broader industry must weigh these regulatory constraints against goals of innovation and expansion.

Compliance and Penalties under the RAISE Act

The RAISE Act introduces a structured framework that emphasizes the necessity for AI developers to adhere to stringent compliance guidelines. Companies that invest over $100 million in crafting their AI models are obligated to not only disclose their safety and security measures but also report any mishaps tied to their technology. Failure to comply with these obligations can result in penalties soaring up to $30 million. Such considerable fines underscore New York's commitment to maintaining stringent safety standards, thereby encouraging responsible innovation in the AI ecosystem. This legislative move positions New York as a beacon of accountability, ensuring residents can trust that the AI services offered within the state are subject to robust oversight.

The compliance aspect of the RAISE Act is meticulously designed to foster transparency while imposing checks on companies that might otherwise prioritize innovation over safety. By targeting large companies like OpenAI, Google, and Anthropic, the Act ensures these tech giants are held accountable for the pivotal role they play in AI development. The hefty penalties serve a dual purpose: deterring negligence and emphasizing the gravity of maintaining safety and transparency in AI operations. As these regulations highlight the potential missteps companies might face in the absence of stringent guidelines, they herald a future where safety is as cherished as innovation within the AI landscape.

The Legislative Journey: Status and Next Steps

The legislative journey of the RAISE Act in New York highlights a significant shift in how AI is regulated in the state. This pioneering legislation has successfully passed both the State Senate and Assembly, marking a critical milestone in AI governance. The Act demands that major AI labs open their security protocols to scrutiny and report any safety incidents, setting a new benchmark for transparency in the industry. At the heart of this legislative push is the pressing need to avert potential AI-induced disasters, reflecting growing public and governmental concern over AI's rapid advancement. Now, the next step rests with Governor Kathy Hochul, who must decide whether to sign the bill into law, mandate amendments, or veto it .

In the backdrop of the RAISE Act's progress is a broader national conversation about state versus federal jurisdiction in AI regulation. The federal government is currently considering a decade-long halt on state-level AI laws, a move that could potentially nullify New York's advancements if enacted. This highlights a conflict between fostering regional regulatory frameworks and maintaining a cohesive national policy. The looming threat of federal intervention underscores the complexity in balancing local regulatory needs with overarching national strategies. As states like New York pioneer in AI regulation, they may set a precedent for others, prompting a re-evaluation of regulatory mechanisms on both state and national levels .

The tech community, particularly Silicon Valley, has expressed significant resistance to the RAISE Act, fearing it could dampen innovation and reduce competitiveness in the AI industry. Critics argue that stringent transparency and compliance requirements could impose burdensome costs on companies, potentially stifling advancements in AI technology. On the contrary, advocates of the legislation, including influential AI researchers, emphasize the necessity of such measures to ensure public safety and accountability. This division reflects a larger debate between innovation and regulation, indicating the challenges lawmakers face in crafting policies that balance progress with precaution .

Reactions from Silicon Valley and Tech Industry Leaders

Silicon Valley and tech industry leaders have been closely monitoring the developments surrounding New York's RAISE Act, a legislative effort designed to enhance transparency and safety in the realm of artificial intelligence. The bill, passed by New York lawmakers, mandates that large AI labs disclose safety and security measures while reporting any incidents. This move is seen as a proactive step to prevent AI-related disasters, aligning with similar regulatory concerns that have been echoed across the tech landscape.

The reaction from Silicon Valley has been notably mixed. Tech giants like OpenAI, Google, and Anthropic, who fall within the purview of the RAISE Act due to their significant investments in AI, have expressed concerns that these regulations may stifle innovation. The tech ecosystem thrives on creativity and fast-paced development, and the stringent requirements of the RAISE Act have sparked fears of regulatory binds that could slow the momentum of technological advancement. Such sentiments were echoed when California's SB 1047, a comparable bill, was vetoed last year, suggesting a broader industry preference for less restrictive frameworks to foster innovation. This opposition highlights a critical tension between innovation and regulation, a theme that continues to shape the narratives within technology policy circles.

Industry leaders like Anjney Midha from Andreessen Horowitz were vocal in their criticism, branding the RAISE Act as shortsighted and potentially debilitating to the United States' edge in the global AI arms race. He described the initiative as "stupid," reflecting a broader sentiment among venture capitalists and tech executives who argue that excessively cautious regulations could deter investment and hinder the dynamic growth characteristic of Silicon Valley. In contrast, some industry insiders, while acknowledging the importance of AI safety, advocate for a more balanced approach that safeguards innovation while addressing safety concerns.

While many in Silicon Valley resist the bill, it has gained support from a faction of AI safety advocates, including renowned AI researchers like Geoffrey Hinton and Yoshua Bengio. They view the RAISE Act as a necessary measure for ensuring AI development proceeds responsibly. The act's emphasis on transparency and accountability aligns with their vision of a future where AI technologies coexist safely within society. This endorsement from respected figures in AI research underscores the ongoing debate on the most appropriate methods to harness the benefits of AI while mitigating its risks.

As the tech industry awaits Governor Kathy Hochul's decision on the RAISE Act, the potential implications for the AI sector loom large. If signed into law, the act could set a precedent, influencing how other states—and possibly federal entities—shape AI regulation in the future. This move has stirred discussions on state versus federal jurisdiction in technology regulation, a conversation that could redefine legislative approaches to AI across the United States. The outcome will undoubtedly impact not only the companies directly subject to the act but also the broader strategic direction of AI development within the nation.

Insights from AI Safety Advocates

The discourse on AI safety often centers around the delicate balance between fostering technological innovation and ensuring public safety, a theme prominently addressed by AI safety advocates. Prominent figures such as Geoffrey Hinton and Yoshua Bengio have voiced strong support for regulatory measures like New York's RAISE Act. They argue that in an era where AI technologies are evolving rapidly, implementing safety and transparency protocols is essential to mitigate the risk of unforeseeable disasters . These advocates express confidence that such measures do not merely serve as restrictive barriers but as safeguards that can promote trust and ethical advancement in AI.

New York's RAISE Act has emerged as a focal point in the discussion about AI safety, highlighting insights from experts who emphasize the necessity for oversight in AI development. The act mandates strict reporting and transparency requirements, which are applauded by AI safety proponents who view them as critical for preventing AI-fueled disasters. Advocates argue that without such measures, the unchecked progress of powerful AI systems could potentially lead to dangerous outcomes . They underscore that these regulations are integral in sculpting a safer and more accountable future for AI interaction with society.

AI safety advocates believe that regulatory frameworks like the RAISE Act are pivotal for creating an environment where AI can be harnessed for the greater good without compromising safety and ethical standards. The act does not only serve as a mechanism for risk mitigation but also as a platform for promoting public trust in AI technologies. Experts argue that increased transparency and accountability measures are vital in allaying public concerns and driving the responsible evolution of AI innovations .

The conversation about AI regulation and safety involves a complex interplay of perspectives, where AI safety advocates are committed to prioritizing human-centric policies. These policies aim to ensure that advancements in AI are pursued with caution and foresight, preventing potential hazards that could arise from cutting-edge technologies. By advocating for robust safety protocols, these experts underscore the importance of preemptive action in the realm of AI policy-making, arguing that regulations like the RAISE Act are paramount in safeguarding societal interests while still nurturing technological progress .

Public Reaction: Support and Criticism

The introduction of the RAISE Act has sparked lively debate among varied stakeholders, reflecting a spectrum of public opinion concerning AI regulation. Supporters of the Act, including prominent figures in AI like Geoffrey Hinton and Yoshua Bengio, argue that the legislation marks a critical step towards fostering responsible AI development. They view the Act as a balanced approach that prioritizes transparency and safety without necessarily throttling innovation. This sentiment is shared by certain community groups and policymakers who emphasize the growing need to preemptively address the potential hazards posed by frontier AI models. In their view, implementing robust accountability measures is crucial to safeguarding public safety and instilling public trust in emerging technologies. More details about the Act can be found here.

Conversely, critics, particularly from within Silicon Valley, have raised concerns about the RAISE Act potentially stifling innovation and hampering the United States' competitive edge in the global AI race. Figures such as Anjney Midha from Andreessen Horowitz have been vocal in their disapproval, labeling the legislation as "poorly conceived." They worry about the financial and operational burden compliance might place on AI labs, particularly those smaller entities that could struggle with the stringent requirements. Moreover, there is apprehension that such regulatory moves might discourage AI companies from setting up operations in New York, thereby affecting local economic growth and tech sector dynamism. For opponents, the Act seems to signal a move towards overly cautious regulation that could inadvertently curb the development of beneficial AI technologies. Insightful commentary on these points is available here.

Interestingly, the RAISE Act has emerged amid a larger national conversation about the jurisdiction of state versus federal regulation of AI technologies. The Act, while state-specific, aligns with a growing legislative interest in AI accountability but faces potential counteraction from federal initiatives preferring a unified national strategy. This dynamic has not only highlighted regional differences in regulatory appetite but also set the stage for broader political discourse around state autonomy in tech governance. The future of such state-led initiatives may hinge on federal attitudes towards AI regulatory frameworks, underscoring the complexity of navigating AI's far-reaching implications. For a nuanced discussion on the federal perspective and its implications on state-level legislation, explore the full article here.

Economic Implications of the RAISE Act

The RAISE Act presents several economic implications for New York and the broader tech industry. By enforcing strict transparency and safety measures, the Act could position New York as a leader in responsible AI development. This might attract investment and talent, particularly from entities focused on ethical AI practices. With the growing global emphasis on safe AI deployment, New York could benefit from its first-mover advantage in enacting such legislation [4](https://westislandblog.com/technology/ai-accountability-vs-innovation-new-yorks-secret-weapon-awaiting-governors-nod/). However, these potential benefits are tempered by the challenges of increased compliance costs for AI labs, which might reduce their profitability and deter companies from setting up operations in the state [1](https://www.aei.org/op-eds/why-new-yorks-new-ai-legislation-is-problematic/).

Silicon Valley's pushback against the RAISE Act highlights concerns that the legislation could impair innovation, a critical driver of economic growth in the tech sector. The stringent requirements might make American tech companies less competitive compared to those in countries with looser regulations, potentially leading to a shift of AI investments overseas [13](https://techcrunch.com/2025/06/13/new-york-passes-a-bill-to-prevent-ai-fueled-disasters/). On the flip side, proponents argue that the long-term economic benefits could outweigh initial compliance costs, as consumer trust in AI technologies might increase with enhanced safety standards, potentially expanding the market for AI products [4](https://westislandblog.com/technology/ai-accountability-vs-innovation-new-yorks-secret-weapon-awaiting-governors-nod/).

Furthermore, the RAISE Act's focus on transparency could foster a more accountable tech environment, potentially leading to innovations that prioritize consumer safety. This approach might encourage ethical investments and partnerships within New York, promoting an ecosystem that balances technological advancement and responsibility [5](https://techcrunch.com/2025/06/13/new-york-passes-a-bill-to-prevent-ai-fueled-disasters/). Nevertheless, the economic impact is contingent upon the federal response to state-level AI regulations, with the potential for a federal moratorium posing significant uncertainties [3](https://gothamist.com/news/ny-lawmakers-want-to-avoid-critical-harm-by-ai-the-feds-may-block-their-rules).

The decision by Governor Kathy Hochul will significantly influence the RAISE Act's economic ramifications. A favorable decision could lead to rapid implementation and enforcement of the Act, potentially setting a benchmark for other states and countries to follow in regulating AI technologies [5](https://techcrunch.com/2025/06/13/new-york-passes-a-bill-to-prevent-ai-fueled-disasters/). This could foster a regulatory landscape that encourages innovation within bounds, possibly spurring economic activity and attracting tech companies willing to work within these frameworks. Conversely, a veto or amendments could delay or dilute the intended impact, affecting New York's projected leadership in AI governance [4](https://techcrunch.com/2025/06/13/new-york-passes-a-bill-to-prevent-ai-fueled-disasters/).

Social Consequences and Accountability Measures

The passage of the RAISE Act in New York represents a significant legislative effort to regulate the rapidly advancing field of artificial intelligence. By focusing on transparency and accountability, the Act aims to mitigate the risk of AI-generated disasters. Compliance with such regulations is expected to foster a culture of vigilance among AI developers, encouraging them to prioritize safety from the onset of AI model development. The Act’s requirements for disclosure of security practices and safety incidents are seen as pivotal in maintaining public trust in AI technologies .

However, the RAISE Act has stirred considerable debate and opposition, particularly from tech giants situated in Silicon Valley. These companies argue that stringent state regulations like those imposed by the Act could hinder the pace of technological innovation. The opposition posits that such measures might divert resources away from research and development towards compliance efforts, potentially stalling advancements that could otherwise enhance economic competitiveness and leadership in the global AI arena .

On the accountability front, the RAISE Act introduces penalties for non-compliance, which can reach up to $30 million, thus underlining the serious commitment of New York lawmakers to enforce these regulations. This approach not only emphasizes the importance of adhering to the safety and security standards but also serves as a deterrent against negligent practices in AI development. This could lead companies to integrate robust ethical guidelines and safety measures into their operational frameworks, thus advancing public safety as a core criterion for technological progress .

Political Dynamics and Federal-State Tensions

In the evolving landscape of AI governance, the tension between federal and state authorities is becoming increasingly pronounced. New York's RAISE Act serves as a key example, demonstrating the state's proactive stance in ensuring AI safety and accountability. However, this move is not without its challenges. At the federal level, there's a burgeoning opposition to state-specific AI regulations, as evidenced by a U.S. House bill proposing a decade-long halt on such measures. This legislative effort underscores a significant dynamic at play: the balancing act between federal oversight and state autonomy in technology regulation. New York's initiative, while lauded by some as a necessary step for AI accountability, risks running afoul of federal interests. If enacted, the RAISE Act could potentially clash with nationwide policies, spotlighting a broader conflict between localized legislative efforts and overarching federal mandates. This tension highlights the complex interplay of political forces vying to shape the future of AI policy in the United States.

Future Prospects and Uncertainties

As we look to the future with the implementation of the RAISE Act, there is a spectrum of prospects and uncertainties that await the industry, policymakers, and society. While New York's legislative move seeks to set a precedent by prioritizing safety and accountability, it simultaneously puts a spotlight on the potential economic benefits and drawbacks. For some, the Act could position New York as a pivotal center for responsible AI development, thereby attracting investment and talent globally. This could transform the state into a beacon for transparent and secure AI practices, enhancing public trust in emerging technologies.

On the flip side, the stringent compliance requirements pose significant financial burdens on companies. The anticipated $30 million penalty for non-compliance could deter firms from operating within New York, leading to a market shrinkage that might reduce competitive dynamics in the tech sector. The debate continues to draw lines between those who argue for the necessity of stringent regulations to ensure public safety and those who fear it might stifle innovation and undermine the U.S.'s standing in the international tech community.

Politically, the RAISE Act ventures into uncharted waters, reflecting a broader national dialogue on the balance between state-level autonomy and federal oversight in technology regulation. With Congress mulling over measures that could potentially undercut state initiatives like the RAISE Act, questions of jurisdiction and governance are brought to the fore. If New York moves forward despite potential federal preemption, it could spark a series of similar legislative actions across other states, redefining the landscape of AI governance in the country.

The uncertainties surrounding the RAISE Act also hinge heavily on the decisions yet to be made by Governor Kathy Hochul. Her stance could either catalyze the Act’s objectives or necessitate a strategic realignment of its provisions. Moreover, with Silicon Valley's resistance highlighting fears of innovation being crippled, the industry's response will play a critical role in determining the Act's practical efficacy and the broader implications for AI development globally. Against this backdrop of regulatory tension and industry skepticism, the path forward for AI regulation remains uncertain but pivotal.