AI Legislative Guide |
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USA, New Jersey |
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(United States)
Firm
Day Pitney LLP
Contributors
Kritika Bharadwaj |
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Has specific legislation, final regulations or other formal regulatory guidance addressing the use of AI in your jurisdiction been implemented (vs reliance on existing legislation around IP, cyber, data privacy, etc.)? | Yes. A4558/S3432, AR141, and AR158/SR121. |
Please provide a short summary of the legislation/regulations/guidance and explain how legislators aim to strike the balance between innovation and regulation. |
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Which agency regulates the use of AI in your jurisdiction? | New Jersey does not have a dedicated AI regulator. However, Bill A4400 proposes the establishment of the New Jersey AI Advisory Council, tasked with advising the state on ethical guidelines, oversight and best practices. It won't have regulatory power but can influence AI policy and regulatory frameworks. This bill has not been passed yet. Additionally:
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AI Legislative Guide
USA, New Jersey
(United States) Firm Day Pitney LLPContributors Kritika Bharadwaj Fariha Syed
Updated 07 Apr 2025Yes. A4558/S3432, AR141, and AR158/SR121.
- A4558/S3432/P.L.024, c.49: Passed on July 25, 2024, this bill established the "Next New Jersey Program" within the New Jersey Economic Development Authority. The goal is to attract investment in the AI sector and foster job creation. Eligible businesses can apply for a tax credit. The tax credit amount is the lesser of (1) 0.1% of the business's total capital investment multiplied by the # of new full-time jobs created, or (2) 25% of the total capital investment, or (3) $250 million. The bill reallocates up to $500 million in tax credits from the New Jersey Aspire Program and the Emerge Program. Uncommitted tax credits can be redirected to eligible AI businesses.
Legislators promote innovation by offering significant tax incentives to attract AI-related businesses and investments, signaling NJ's commitment to becoming a leader in the innovation economy. At the same time, by capping the total tax credits and reallocating funds from existing economic programs, they ensure fiscal responsibility and strategic oversight—channeling public resources in a controlled, targeted manner. This structured incentive approach supports growth while maintaining government accountability. - AR141: Passed on June 28, 2024, this resolution urges generative AI and content-sharing platforms to voluntarily commit to preventing and removing harmful content, specifically targeting "deepfake" and "cheapfake" media. Deepfakes are media files that have been digitally manipulated using AI to depict people saying or doing things they did not actually say or do. Cheapfakes are audiovisual content altered using simpler software tools, resulting in misleading representations.
Rather than imposing immediate legal restrictions, legislators take a measured approach by encouraging platforms and AI developers to voluntarily police harmful content. This allows room for technological development and free expression while addressing real-world harms caused by manipulated media. The resolution reflects a regulatory philosophy of collaborative governance—urging responsible innovation without stifling progress through rigid mandates. - AR158/SR121: Passed on January 30, 2025, this resolution urges generative AI companies to voluntarily adopt commitments regarding employee whistleblower protections with respect to AI-related risks. Current whistleblower protections may be inadequate for employees disclosing information about AI-related concerns. This resolution asks companies to commit to : (1) non-retaliation, (2) anonymous reporting process, (3) support a culture of open-criticism, (4) legal and technical safe harbor for evaluators - for individuals conducting good-faith evaluations of AI systems, (5) protection for public disclosures after internal processes have failed, (6) freedom to report concerns - allow employees to publicly report concerns until an appropriate anonymous reporting process is established.
Legislators encourage responsible innovation by urging AI companies to adopt voluntary commitments that acknowledge the rapid pace and potential benefits of AI development while recognizing the need for ethical safeguards. Instead of imposing immediate regulatory burdens, the resolution promotes a culture of internal accountability, which can help prevent harm without stifling progress. By fostering transparency and trust within the AI sector, lawmakers support innovation while laying the groundwork for more formal oversight if needed.
New Jersey does not have a dedicated AI regulator. However, Bill A4400 proposes the establishment of the New Jersey AI Advisory Council, tasked with advising the state on ethical guidelines, oversight and best practices. It won't have regulatory power but can influence AI policy and regulatory frameworks. This bill has not been passed yet.
Additionally:
- The New Jersey Office of Information Technology: manages policies related to technology implementation, data security and privacy, including AI systems used within the state government.
- The New Jersey Economic Development Authority: manages the Next New Jersey Program mentioned above
- The New Jersey Commission on Science, Innovation and Technology: conducts studies on AI's impact on the state's economy, labor market, and tech sector; advises the government on potential AI-related legislation and policy implications
- The New Jersey Attorney General's Office: addresses legal issues relating to AI, particularly involving consumer protection, discrimination, privacy, or identity theft; investigates and enforces state laws in situations where AI use may cause harm or violate rights.