New York Senate Bill S10241 addresses the application of artificial intelligence by insurers and clinical peer reviewers in the utilization review process. The proposed legislation aims to establish additional notice requirements for adverse determinations that result from AI-driven reviews [1]. This bill is currently in the Senate Insurance Committee, indicating early legislative consideration [2].

Who does S10241 affect?

Organizations including insurers, clinical peer reviewers, and healthcare providers employing artificial intelligence for utilization review in New York State are within scope. This includes entities whose AI systems contribute to decisions on medical necessity, coverage, or appropriateness of care, particularly those leading to adverse determinations.

What is the current status of S10241?

As of the last published update, S10241 is at the "committee" stage, with bill status "in committee".

Where can I find the primary source for S10241?

The primary source for the most recent update is at https://legislation.nysenate.gov/bills/2025/S10241. AIGI publishes the full citation chain plus every approved brief on this bill.

NY, US · AI law tracker

S10241 — NY, US

S10241 is an AI governance legislation from NY, currently committee. The bill introduces new notice requirements for adverse determinations based on AI utilization review [1]. AIGI tracks 1 primary-source update on this bill; the most recent was published on 2026-05-08.

Status & timeline

Regulatory stage: committee
Bill status: in committee
Authority / governing body: New York State Senate
Chamber: senate
Document type: legislation

Next deadline: No fixed deadline — currently in committee.

Subscriber only

Full obligation matrix

Actor	Obligation	Deadline	Source
deployer	Insurers and clinical peer reviewers using artificial intelligence for utilization review must establish additional notice requirements for adverse determinations.	—	—

Subscriber only

Enforcement risk score

/ 100

Announced regulation; enforcement footprint still forming.

Subscriber only

Role-based compliance checklist

general_counsel Monitor New York S10241 for legislative progress and specific regulatory text as it develops.
compliance_officer Assess current utilization review processes to identify areas where AI is used and where additional notice requirements might apply if the bill is enacted.
product_manager Evaluate existing AI-powered utilization review tools for their capability to provide enhanced adverse determination notices.

Subscriber only

Vendor impact assessment

Vendor risk class: high
Procurement categories: healthcare_ai, productivity_assistants

Vendors providing AI solutions for utilization review to New York-based insurers and healthcare providers will need to demonstrate the capability of their systems to support new transparency and notice requirements if S10241 passes. This could impact system design, configurability, and reporting features.

Sample vendor questions

How does your AI-powered utilization review solution support compliance with New York S10241's potential requirements for additional adverse determination notices?
Can your system be configured to provide specific, AI-related disclosures in adverse determination notices?
What data sources does your AI use for utilization review, and how is transparency maintained regarding its decision-making process?
What processes are in place to ensure human oversight of AI-driven utilization review decisions, especially for adverse determinations?

Intelligence briefs (1)

legislation in_committee 5/8/2026

NY S10241: AI in Utilization Review, Adverse Determination Notice

The bill introduces new notice requirements for adverse determinations based on AI utilization review [1].

This signals emerging state-level deployer obligations for AI in healthcare utilization review, focusing on transparency in adverse decisions.

Deadline: No fixed deadline — currently in committee.

Primary source →

Frequently asked questions

What is S10241?: New York Senate Bill S10241 addresses the application of artificial intelligence by insurers and clinical peer reviewers in the utilization review process. The proposed legislation aims to establish additional notice requirements for adverse determinations that result from AI-driven reviews [1]. This bill is currently in the Senate Insurance Committee, indicating early legislative consideration [2]. Primary source →
Why does S10241 matter?: This signals emerging state-level deployer obligations for AI in healthcare utilization review, focusing on transparency in adverse decisions. Primary source →
Who does S10241 affect?: Organizations including insurers, clinical peer reviewers, and healthcare providers employing artificial intelligence for utilization review in New York State are within scope. This includes entities whose AI systems contribute to decisions on medical necessity, coverage, or appropriateness of care, particularly those leading to adverse determinations. Primary source →
What are the key dates for S10241?: No fixed deadline — currently in committee. Primary source →
What is the current status of S10241?: As of the last published update, S10241 is at the "committee" stage, with bill status "in committee". Primary source →
Where can I find the primary source for S10241?: The primary source for the most recent update is at https://legislation.nysenate.gov/bills/2025/S10241. AIGI publishes the full citation chain plus every approved brief on this bill. Primary source →

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Important — about this brief

This brief is published by AIGI as a regulatory intelligence service. It contains general information about AI laws, regulations, enforcement actions, and policy signals across jurisdictions. It is not legal, compliance, audit, or risk-management advice; it does not establish an attorney-client, advisory, or fiduciary relationship; and it should not be relied upon as a substitute for professional counsel applied to specific facts and circumstances. Where the brief identifies “Issues for Review,” those are observations of questions a reader in a particular role might raise with their own legal, compliance, or risk function — not recommendations to act. AIGI expressly disclaims liability for actions taken or not taken in reliance on this brief. Subscribers in regulated industries should consult licensed professionals authorized to practice in their jurisdiction.

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Status & timeline

Intelligence briefs (1)

NY S10241: AI in Utilization Review, Adverse Determination Notice

Frequently asked questions

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