AI Legislative Guide |
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USA, New York |
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(United States)
Firm
Faegre Drinker Biddle & Reath LLP
Contributors
William Wright |
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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. New York has implemented specific city-level legislation, state-level legislative amendments, and formal state agency guidance directly addressing AI. |
| 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? | The regulation of AI in New York is handled by multiple agencies, each with specific areas of oversight:
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AI Legislative Guide
USA, New York
(United States) Firm Faegre Drinker Biddle & Reath LLPContributors William Wright
Updated 19 Jun 2025Yes.
New York has implemented specific city-level legislation, state-level legislative amendments, and formal state agency guidance directly addressing AI.
- New York City Local Law 144 (Automated Employment Decision Tools): Enacted December 11, 2021, and enforced from July 5, 2023, this law mandates annual, independent, and impartial bias audits of Automated Employment Decision Tools (AEDTs) used for hiring or promotion of New York City residents. It also requires employers to notify candidates/employees about the use of AEDTs and publish summaries of the audit results. The law broadly defines AEDTs to include systems using machine learning, statistics, data analytics, or other AI techniques for prediction or classification, and specifies protected categories like race/ethnicity and sex/gender for the audits.
- New York State WARN Act Amendment (AI and Automation Disclosure in Layoffs): Effective March 2025, this amendment to the state's Worker Adjustment and Retraining Notification (WARN) Act requires employers with 50 or more employees to disclose if "technological innovation or automation" (including AI or robotics) is a reason for mass layoffs. This is done via a new checkbox on the WARN form, which must be filed at least 90 days before layoffs affecting 25 or more workers or one-third of the workforce at a single site. The aim is to enhance transparency and gather data to inform reskilling programs and economic policies.
- New York State Department of Financial Services (NYDFS) Guidance on AI Cybersecurity Risks: Issued on October 16, 2024, this industry letter provides guidance to NYDFS-regulated entities (primarily financial institutions) on how to use existing cybersecurity regulations (23 NYCRR Part 500) to assess and mitigate AI-related cybersecurity risks. It identifies four key threats: AI-enabled social engineering, AI-enhanced cyberattacks, exposure of nonpublic information due to the entity's own AI use, and increased vulnerabilities from third-party/supply chain dependencies related to AI. The guidance suggests actions such as incorporating AI risks into existing risk assessments, conducting due diligence on AI vendors, strengthening access controls, and enhancing cybersecurity training.
- New York State Department of Financial Services (NYDFS) Guidance on Insurers’ Use of AI and ECDIS: Issued on July 11, 2024, this circular letter sets forth expectations for insurance companies that use AI systems or external consumer data and other information sources in underwriting and pricing insurance policies and annuity contracts. The circular letter covers fairness principles (including with respect to unfair or unlawful discrimination), governance and risk management and transparency.
The regulation of AI in New York is handled by multiple agencies, each with specific areas of oversight:
- New York City Department of Consumer and Worker Protection (DCWP): This agency is responsible for enforcing New York City Local Law 144, which pertains to Automated Employment Decision Tools (AEDTs).
- New York State Department of Labor (DOL): The DOL is tasked with enacting and enforcing the amendment to the New York State Worker Adjustment and Retraining Notification (WARN) Act, which requires disclosure of AI's role in mass layoffs.
- New York State Department of Financial Services (NYDFS): The NYDFS issued and oversees compliance with its guidance on (i) AI-related cybersecurity risks for financial institutions and other entities it regulates, and (ii) the use of AI by insurance companies.
- New York Attorney General (OAG): While not a primary regulator for the specific implemented measures, the Attorney General's office plays a significant role in broader AI governance through consumer protection, public education, and enforcement actions related to AI misuse. Proposed state-level AI legislation also grants enforcement authority to the Attorney General.