New York is preparing a second wave of AI legislation before its landmark safety law even takes effect, as Governor Kathy Hochul and Democratic lawmakers signal that the state must move faster than Washington to regulate the technology. The RAISE Act, which Hochul signed in December after negotiating industry-friendly changes, goes into effect in January. But the governor said Tuesday she will pursue "additional actions that we can take at the state level to lead the way in the absence of leadership from Washington."
The push comes as President Donald Trump has dismissed AI safety concerns as a "HOAX" and resisted federal restrictions. Hochul told reporters, "I believe we have an obligation to ensure that technological progress does not come at our own peril. So while Washington refuses to act, here in New York we're stepping up." She did not specify what new measures she would propose.
Lawmakers push rights-based frameworks and superintelligence bans
Senator Kristen Gonzalez, chair of the Senate Internet and Technology committee, criticized AI company leaders who warn about technological risks while fighting state-level regulation. "I don't think we can trust the same people who got us into this mess to get us out of it," she said. Gonzalez said she is focused on a "rights-based" framework that prioritizes "the maximum amount of liability and transparency and accountability for these companies."
Brian Romero, a Democratic Assembly candidate expected to win his New York City seat in November, floated a state-level ban on "superintelligence," modeled after a national proposal backed by Senator Bernie Sanders. Romero, a former staffer for Gonzalez, said lawmakers need to introduce "the larger concepts of this broader conversation into the political sphere now." He added, "The governor needs to be taking this very seriously for whatever her state of the state proposals are going to be."
Data center scrutiny expands beyond AI models
Hochul's administration on Tuesday released a framework for communities negotiating with data center developers. The guidance recommends seeking a minimum community investment of $1 million per megawatt from developers and urges local governments to "think carefully" before signing non-disclosure agreements, saying they should be limited in scope. Some Democratic lawmakers want to ban such agreements outright and have criticized the non-binding nature of the guidance.
The governor still has AI-focused bills on her desk, including Gonzalez's legislation placing limits on chatbots for minors. Democratic lawmakers are also pressing Hochul to sign a more aggressive data center regulatory package that includes a longer moratorium than the one-year pause she enacted by executive order in July. New York City Mayor Zohran Mamdani backed a nationwide data center moratorium Tuesday, adding that the federal government should also slow "the pace of development" of AI itself.
Why this matters for legal professionals
New York's accelerating regulatory timeline signals a fragmented compliance environment for companies developing or deploying AI systems. The shift toward rights-based frameworks, expanded liability, and transparency requirements will create new legal obligations at the state level that diverge from federal inaction. For legal teams advising clients on AI for Legal applications or compliance strategy, the patchwork of state laws is becoming the primary regulatory reality. Professionals focused on government affairs should track these developments closely - the AI for Policy Makers learning path covers the evolving legislative approaches shaping this landscape.
Your membership also unlocks: