The law applies to "large frontier developers", companies with more than $500 million in annual revenue. A new office, DIGIT, will oversee it. Fines can reach $1 million for a first violation and $3 million for later ones, and the state can also take enforcement action against companies that fail to register. A spokesperson declined to say what that would involve.
Governor Kathy Hochul also launched the New York Center for AI Responsibility and Research the same day, at SUNY's Binghamton University. The center will independently evaluate the safety and security of advanced AI systems and work with DIGIT to review companies' safety frameworks. Hochul announced it in January with $55 million in donations and capital.
Other states have passed similar laws: California's SB 53, in force since January, requires published safety frameworks and reporting of critical incidents within 15 days. Illinois' SB 315 takes effect at the start of 2027 and also includes independent compliance audits. In New York, a separate law restricting chatbot behavior toward minors takes effect in June 2027.