AI Regulations Adopted by NYS May be Voided if Proposed Congressional Moratorium Passes
A proposal reportedly advancing in Congress includes language that could “bar states and localities from enforcing ‘any law or regulation regulating artificial intelligence models, artificial intelligence systems, or automated decision systems’ for 10 years after the [federal] budget passes” if included. While supporters in Congress defend the proposal “as a way to simplify the federal government’s efforts to regulate AI without dealing with conflicting laws at the local level,” the proposal sparked opposition. The moratorium could void multiple laws already adopted by New York City and New York State such as the Legislative Oversight of Automated Decision-making in Government (LOADinG) Act signed into law by Governor Hochul in December of 2024. The “first in the nation” legislation provides assessment, transparency and oversight of automated decision-making systems used for high stakes decisions by state agencies” according to the news release last year by Assembly Speaker Carl E. Heastie. As part of the legislation, state agencies are required to publicly disclose when software reliant on AI is used, and once in use, to regularly evaluate those tools. The growing use of AI “deepfakes” to influence elections — a “type of artificial intelligence used to create convincing fake images, videos and audio recordings has also been banned at the state level; and as part of the recently adopted FY 2026 state budget, a “law requiring the makers of AI chatbots to add disclaimers stating the bots are not human” was passed. It has also been cited in the Crain’s New York article that laws barring companies from using “automated employment decision-making tools” have been adopted by both New York City and the state in recent years, with additional AI regulations being considered in the New York State Legislature that if passed, would require “AI companies to develop safety plans for new products and allow residents to seek damages against AI companies that foster ‘algorithmic discrimination’ against certain groups.”