While states such as Colorado (and, perhaps shortly, California) have led the pack when it comes to AI regulation, the state of New York won’t be left behind. There are currently more than 60 bills pending in New York that bear some relation to artificial intelligence. If you’re curious about which way the legislative winds are blowing in New York, but don’t have the time to sift through the muck, this alert does the heavy lifting for you. Below are the four pending AI bills in New York that have gained the most traction so far.
1. Mandating Warnings on Generative AI Systems (S9450-A / A10103-B)
This bill focuses on increasing consumer awareness about the limitations of generative AI systems. The main requirements are:
- Conspicuous warnings on generative AI system interfaces
- The owner, licensee, or operator of a generative AI system must conspicuously warn users that outputs may be inaccurate or inappropriate
- The penalty for non-compliance would the lesser of $25 per user or $100,000. Each applies per calendar year
- The bill provides legal definitions for key terms:
- "Artificial intelligence" is defined as: "A machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments. Artificial intelligence systems use machine- and human-based inputs to perceive real and virtual environments; abstract such perceptions into models through analysis in an automated manner; and use model inference to formulate options for information or action. This definition includes but is not limited to systems that use machine learning, large language models, natural language processing, and computer vision technologies, including generative AI."
- "Generative artificial intelligence system" is defined as: "Any artificial intelligence system whose primary function is to generate content, which can take the form of code, text, images, and more."
These definitions are significant as they could set a precedent for how AI is legally understood and regulated in New York State and potentially influence other jurisdictions.
Current Status: Passed Senate on June 6, 2024, and delivered to the Assembly and referred to the Ways and Means Committee.
This is a proposed amendment to NY’s General Business Law. The key features are:
- Provides its own definition of “generative artificial intelligence” as well as the definition of a “synthetic performer,” which is a “digitally created asset created, reproduced, or modified by computer, using generative artificial intelligence or a software algorithm, that is intended to create the impression that the asset is a natural performer who is not recognizable as any identifiable natural performer”
- The bill would require the disclosure of the use of any “synthetic performer” in any advertisement – be it online, radio, TV, etc.
- Violation of this statute would result in a penalty of $1,000 for the first violation and $5,000 for any subsequent violations
Current Status: Amended and referred to committees in the Assembly and Senate.
3. Protecting Public Officials from Unauthorized AI Depictions (A10652)
This legislation addresses the growing concern of unauthorized AI-generated depictions of public officials. The key provisions are:
- Requires AI system operators to implement methods prohibiting unauthorized realistic depictions of public officials
- Allows public officials to notify AI system operators to prevent such depictions
- Sets penalties of $100 per unauthorized depiction, up to $100,000 in aggregate
This proposed bill defines “public officials” broadly to include both current officeholders and candidates, as well as their authorized representatives. It aims to safeguard election integrity and maintain public trust in government by preventing the spread of potentially misleading AI-generated content featuring public officials. It provides a one-year implementation period after becoming law, allowing AI system operators time to develop and implement the necessary safeguards.
Current Status: Referred to Consumer Affairs and Protection committee on July 22, 2024.
4. Comprehensive Study of AI Regulation (S8138-A / A9559)
This bill proposes the creation of a temporary state commission to study and investigate the regulation of AI, robotics, and automation. The key features are:
- 14-member commission appointed by various state officials
- Broad mandate to examine AI's impact across multiple sectors
- Power granted to the commission to investigate:
- Current NY state laws on AI, robotics and automation
- Comparative state policies on AI regulation
- Criminal and civil liability for violations caused by entities equipped with AI, automation, and robots
- AI's impact on employment and confidential information handling
- Potential restrictions on AI in weaponry
- Impact of proposed regulations on the technology industry
- Public sector applications of AI
Current Status: Passed Senate on May 8, 2024, and delivered to the Assembly and referred to the Science and Technology committee on the same day.
This comprehensive study could significantly shape future AI regulation in New York, potentially influencing policy decisions across various sectors.
Given New York's influential position, these legislative efforts could potentially set a precedent for AI regulation in other states or at the federal level. As the landscape of AI legislation continues to evolve, staying informed and prepared for potential compliance requirements will be crucial for anyone involved in the AI sector.
