New York

New York combines a state frontier-model transparency law with New York City's first-in-the-nation bias-audit rule for hiring tools. The state law, the RAISE Act, was adopted in December 2025, rewritten by a chapter amendment in March 2026, and takes effect January 1, 2027. Since November 5, 2025, operators of AI companions have had to remind users that they are talking to a machine and to respond to signs of suicidal ideation. New York City's Local Law 144 has required bias audits of automated employment decision tools since 2023, and since June 9, 2026, advertisers must disclose synthetic performers in ads.

Key points

• New York's frontier AI law, the RAISE Act, was signed December 19, 2025, amended by S8828 on March 27, 2026, and takes effect January 1, 2027.
• It mirrors California's SB 53 approach to large-model developers: models trained past 10^26 operations by developers with $500 million or more in annual revenue, with reports to a new office in the Department of Financial Services.
• AI companion safeguards in General Business Law Article 47 have applied since November 5, 2025: a reminder at least every three hours that the user is talking to a machine, and detection of suicidal ideation with referral to crisis resources, enforced by the attorney general at up to $15,000 a day.
• NYC Local Law 144 has required independent bias audits of automated employment decision tools since July 2023.
• Employers using covered hiring tools must publish audit results and notify candidates.
• Since June 9, 2026, advertisers must conspicuously disclose AI-generated synthetic performers, the first rule of its kind in the country. California followed with SB 1050 in September 2026.
• Since November 10, 2025, businesses that set a price with an algorithm using a consumer's personal data must say so next to the price, under the Algorithmic Pricing Disclosure Act, with attorney general penalties of up to $1,000 per violation.

Laws and instruments

Timeline

• July 5, 2023
  NYC Local Law 144 enforcement begins.
• November 5, 2025
  AI companion safeguards in General Business Law Article 47 take effect.
• November 10, 2025
  The Algorithmic Pricing Disclosure Act takes effect after a federal court rejects a First Amendment challenge to it.
• December 11, 2025
  Synthetic performer disclosure law signed.
• December 19, 2025
  RAISE Act signed; the frontier law takes effect January 1, 2027.
• March 27, 2026
  Chapter amendment S8828 to the RAISE Act signed: final thresholds, a DFS oversight office, and penalties of up to $1 million and $3 million.
• June 9, 2026
  Synthetic performer disclosure takes effect.
• September 21, 2026
  The governor announces that large frontier developers must register with the state from November 2026 and names the DFS office (DIGIT) that will run the RAISE Act.
• January 1, 2027
  State frontier law takes effect.

Who it applies to

State law targets large frontier-model developers and operators of AI companions. Local Law 144 applies to employers and employment agencies using covered automated hiring tools in New York City. Advertisers must disclose synthetic performers in ads, and businesses that set prices with algorithms using personal data must disclose it.

Penalties

Local Law 144 carries civil penalties per violation. The RAISE Act, once in effect, carries penalties of up to $1 million for a first violation and $3 million for later ones, plus $1,000 a day for missing disclosure filings, enforced by the attorney general and the Department of Financial Services. AI companion violations carry up to $15,000 a day. Synthetic performer violations carry $1,000 for a first offense and $5,000 for each later one. Algorithmic pricing disclosure violations carry up to $1,000 each.

Common questions