In a First for State-Level Legislation, New York's RAISE Act Promotes AI Safety, But VCs and Tech Industry Express Discontent

AI regulation leaped into the political spotlight as New York lawmakers gave a nod to the pioneering safety-focused RAISE Act. Venture capitalists and tech industry giants raised eyebrows and expressed discontent at the prospect of the new rules. Despite the previous attempt at comprehensive state-level AI safety regulation - California’s SB 1047 - being vetoed by the governor, legislators remain determined to enforce safeguards for the burgeoning AI sector.

Introduced by Democratic Sen. Andrew Gounardes, the RAISE Act stipulates that large language model developers must prepare and disclose safety protocols and risk assessments. In addition, the regulation mandates a reporting obligation on companies if their AI models are stolen, or if these models behave in ways that might induce risk.

Comparing the situation to the safety of entrusted loved ones, Senator Gounardes argued for the necessity of basic safeguards in all potent AI systems. After clearing the legislative hurdles, the bill now teeters on the brink of approval or veto by Governor Kathy Hochul, whose stand remains uncertain.

Industry players, especially venture capitalists, have been vocally against this state-level AI regulation. Criticizing the RAISE Act as harmful to American interests in the tech race, they contend it could stifle innovation and impose undue burdens on small startups. History echoes their concerns, with similar objections leading to the downfall of the comparable SB 1047 in California.

Amidst the turmoil, a significant perspective emerges on the possible upscaling of successful AI companies if such a bill becomes law. While open discussion and debate continue, there is an undercurrent of agreement on the need for a federal transparency standard in the hope of a unified national rule for AI safety and efficacy regulation.