Spotlight on New York: 2026 kicks off with AI action
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New York officials are kicking off 2026 with new AI proposals and probes aimed at protecting consumers.
Why it matters: The action is coming shortly after New York Gov. Kathy Hochul (D) signed the RAISE Act, a major frontier AI model safety bill, into law late last year.
Hochul's new proposal for this year includes:
- Expanding age verification for platforms, including gaming;
- Requiring default settings on social media platforms for kids;
- Disabling certain AI chatbot features for kids;
- Making sure that parents can control or set limits on kids' financial transactions.
What they're saying "These proposals will create a nation-leading standard that will ensure our kids' safety in online and real world environments where they spend time," Hochul said in a press release.
- The package, which draws on existing legislation and is part of Hochul's "State of the State" agenda, would have to clear the New York State Assembly and Senate.
The big picture: Hochul is a unique example of a governor looking to balance AI safety rules while welcoming AI development to her state.
- This week, Hochul announced that London-based AI company ElevenLabs will expand operations in Manhattan with a $33 million research and development investment.
- Micron also plans to break ground on an $100 billion semiconductor facility in White Plains, New York, later this month.
New York is also leading the way on another AI issue that's salient among voters looking for affordability: algorithmic pricing.
- Attorney General Letitia James is probing Instacart for allegedly charging shoppers significantly different prices for the same products.
- New York's Algorithmic Pricing Disclosure Act took effect in November.
- "Charging different prices for the exact same products leaves shoppers feeling cheated and threatens to raise costs at a time when consumers are already paying too much at the grocery store," James said.
- The attorney general is also continuing work on holding AI companies accountable. For example, James is reviewing recent reports of Grok's distribution of nonconsensual sexual imagery, spokesperson Geoff Burgan said.
