New York Bill S1854 (2025-2026) proposes the "New York workforce stabilization act" [1], mandating artificial intelligence impact assessments for certain businesses. These assessments must be submitted to the Department of Labor before AI implementation [1]. The bill also introduces a 2% surcharge on business income for corporations utilizing AI or data mining, or those exceeding a threshold of employees displaced by AI [1].

Who does S1854 affect?

Businesses in New York employing artificial intelligence or data mining technologies are primarily in scope. Organizations with a workforce potentially impacted by AI-driven automation, or those considering AI implementation, may be affected. The bill's financial surcharge targets corporations above a certain employee displacement threshold or those utilizing AI, suggesting a broad impact across various sectors.

What is the current status of S1854?

As of the last published update, S1854 is at the "committee" stage, with bill status "In Senate Committee".

Where can I find the primary source for S1854?

The primary source for the most recent update is at https://legislation.nysenate.gov/bills/2025/S1854. AIGI publishes the full citation chain plus every approved brief on this bill.

NY, US · AI law tracker

S1854 — NY, US

S1854 is an AI governance legislation from NY, currently committee. New York Bill S1854 mandates AI impact assessments and a business income surcharge for certain AI-using corporations [1]. AIGI tracks 1 primary-source update on this bill; the most recent was published on 2025-01-14.

Status & timeline

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

Next deadline: No fixed deadline — currently in Senate Committee for the 2025-2026 session.

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Full obligation matrix

Actor	Obligation	Deadline	Source
deployer	Conduct artificial intelligence impact assessments on the application and use of artificial intelligence.	Prior to the implementation of the artificial intelligence	—
deployer	Submit artificial intelligence impact assessments to the department of labor.	Prior to the implementation of the artificial intelligence	—
deployer	Pay a 2% surcharge on the corporation's business income base if using AI or data mining and displacing employees above a certain threshold.	—	—

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Enforcement risk score

/ 100

Announced regulation; enforcement footprint still forming.

Subscriber only

Role-based compliance checklist

compliance_officer Monitor the status of NY S1854 and its potential enactment. (Ongoing)
chief_ai_officer Begin developing an internal framework for conducting AI impact assessments, focusing on workforce implications.
hr_director Assess current and projected workforce changes related to AI implementation to understand potential displacement risks.
general_counsel Review the definitions of 'artificial intelligence,' 'data mining,' and 'employee displacement' as defined in the bill to understand scope.
cto Inventory AI systems in use or planned for deployment that would fall under the scope of impact assessment requirements.
board_director Understand the strategic and financial implications of potential AI surcharges and compliance costs.

Subscriber only

Vendor impact assessment

Vendor risk class: high
Procurement categories: hr_tech, productivity_assistants, ai_risk_management, other

Vendors supplying AI systems, particularly those related to human resources or automation, will need to be prepared to demonstrate how their systems can contribute to client's AI impact assessments. They may also need to provide data or features to help clients track and report employee displacement.

Sample vendor questions

Does your AI system automate tasks previously performed by human employees, and if so, how do you measure potential displacement?
Can your AI system generate impact assessment reports or data points relevant to workforce effects?
What data governance and explainability features are built into your AI system to support a compliance audit?
How does your AI system address fairness and bias concerns, especially in areas related to employment?
What assistance can you provide to help us meet regulatory requirements like impact assessments and reporting?

Intelligence briefs (1)

legislation In Senate Committee 1/14/2025

New York Bill S1854 Proposes AI Impact Assessments and Surcharge

New York Bill S1854 mandates AI impact assessments and a business income surcharge for certain AI-using corporations [1].

This development signals emerging deployer obligations and financial considerations for AI adoption within New York.

Deadline: No fixed deadline — currently in Senate Committee for the 2025-2026 session.

Primary source →

Frequently asked questions

What is S1854?: New York Bill S1854 (2025-2026) proposes the "New York workforce stabilization act" [1], mandating artificial intelligence impact assessments for certain businesses. These assessments must be submitted to the Department of Labor before AI implementation [1]. The bill also introduces a 2% surcharge on business income for corporations utilizing AI or data mining, or those exceeding a threshold of employees displaced by AI [1]. Primary source →
Why does S1854 matter?: This development signals emerging deployer obligations and financial considerations for AI adoption within New York. Primary source →
Who does S1854 affect?: Businesses in New York employing artificial intelligence or data mining technologies are primarily in scope. Organizations with a workforce potentially impacted by AI-driven automation, or those considering AI implementation, may be affected. The bill's financial surcharge targets corporations above a certain employee displacement threshold or those utilizing AI, suggesting a broad impact across various sectors. Primary source →
What are the key dates for S1854?: No fixed deadline — currently in Senate Committee for the 2025-2026 session. Primary source →
What is the current status of S1854?: As of the last published update, S1854 is at the "committee" stage, with bill status "In Senate Committee". Primary source →
Where can I find the primary source for S1854?: The primary source for the most recent update is at https://legislation.nysenate.gov/bills/2025/S1854. 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)

New York Bill S1854 Proposes AI Impact Assessments and Surcharge

Frequently asked questions

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