New York Governor Kathy Hochul has signed legislation as part of the FY26 budget to expand the Empire AI consortium with $90 million for increased computing power and new members, aiming to advance AI research for public good. The legislation also establishes "first-in-the-nation" safeguards for AI companion systems, requiring them to implement safety features, detect self-harm, refer users to crisis centers, and clearly disclose they are not human. Additionally, it modernizes penal law to treat AI-generated child sexual abuse material as child pornography, which is now considered binding law in New York.
Effective date
2025-05-09
Action required
Companies operating AI companion systems must implement safety features, self-harm detection protocols, and clear AI disclosure. All entities must ensure compliance with the new penal law prohibiting AI-generated child sexual abuse material.
Binding status
binding
Governing body
Governor Kathy Hochul / New York State
Direction
balanced
Innovation impact
enabling
Compliance requirements
Required disclosures
- AI companions must notify and remind users that they are not interacting with a human.
Prohibited practices
- Creation and dissemination of AI-generated child sexual abuse material.
Transparency requirements
- AI companions must notify and remind users they are not interacting with a human.
AI technologies
Affected industries
Affected roles
"“With these bold initiatives, we are making sure our state leads the nation in both innovation and accountability. New York is not just keeping pace with the AI revolution – we are setting the standard for how it should be done.”"
Enriched 2026-06-11
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