Hochul weighs AI investments against RAISE Act

And Marc Molinaro warned the MTA that it could lose funding over worker safety risks.

Good afternoon — it’s Tuesday and National Potato Day.

In today’s CapCon:

• Hochul said she wants to strike a balance while considering if the RAISE Act, an artificial intelligence regulation bill, should become law.

• Marc Molinaro warned the MTA Tuesday that it could lose federal funding if it doesn't step up worker safety.

• Top Democrats, including Lt. Gov. Antonio Delgado and several state lawmakers, asked Hochul Tuesday to reject revived gas pipeline proposals.

• New York may need billions of dollars in new revenue, officials say. One lawmakers wants to raise it from cryptocurrency.

• Hospitals could soon be required to have off-duty law enforcement officers around emergency departments.

Names in today’s CapCon: Kathy Hochul, Alex Bores, Marc Molinaro, Antonio Delgado, Jumaane Williams, Brad Lander, Phil Steck, George Alvarez, Nily Rozic, Luis Sepulveda, Catalina Cruz

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Hochul on Tuesday (Will Waldron/Times Union)

🤖 Hochul ‘not trying to set up barriers’ for AI companies in New York

New York could have some of the strictest regulations for artificial intelligence models on the books by the end of the year.

That will be up to Gov. Kathy Hochul, who will have to consider the Responsible AI Safety & Education (RAISE) Act by the end of the year. It passed both chambers of the Legislature in June.

The bill was partly in response to a report from artificial intelligence experts and representatives from dozens of countries on the status of emerging models.

One startling finding: it warned that AI is advancing so quickly that it could soon be used to produce biological weapons.

The intent of the legislation is to force artificial intelligence companies doing business in New York to take steps that could prevent that — and other critical events.

It would require developers of frontier AI models to have a safety plan for preventing their product from being used for mass harm. That’s defined as the death or serious injury of at least 100 people or an action that results in at least $1 billion in damages.

The bill would also require developers to report “safety incidents” to the state within three days of them happening, including when the model acts autonomously or is used for an unlawful purpose.

Companies found to have violated the law would face up to $10 million in civil penalties for a first offense and $30 million for incidents after that.

Lawmakers held an AI hearing last year. The RAISE Act is sponsored by Assemblyman Alex Bores (left) (Will Waldron/Times Union)

Those are the basics of the bill but it’s far more detailed than I described it. As you may have assumed, it’s faced strong opposition from tech and business groups.

Hochul has tried to champion advancements in AI since she came into office, including the creation of Empire AI at the University at Buffalo, where an extremely powerful supercomputer is being built.

She hasn’t said where she stands on the RAISE Act, which isn’t unusual. Hochul typically doesn’t show her cards before she’s made a decision on a bill, though lawmakers will know if she wants to negotiate changes through a chapter amendment.

That’s when the governor signs the bill with a promise from the Legislature to amend it at the next earliest opportunity.

When asked Tuesday if she wants New York to have some of the country’s strictest regulations of AI, Hochul said she’s instead seeking a balance on the RAISE Act.