GOVERNOR HOCHUL SIGNS LEGISLATION EXPANDING HISTORIC EMPIRE AI CONSORTIUM AND ESTABLISHING NATION-LEADING AI PROTECTIONS FOR RESPONSIBLE GROWTH AS PART OF THE FY 2026 BUDGET

By Hochul Press Office | May 9, 2025

Governor Kathy Hochul today signed new legislation as part of the FY26 Enacted Budget to expand Empire AI, further invest in AI research for public good, establish first-in-the-nation safeguards for novel AI Companion systems, and modernize the penal code to protect children from AI-generated sexual abuse material. These victories build on the Governor’s initiatives to ensure equitable growth of the technology industry in New York by investing in underrepresented students and entrepreneurs, uplifting small businesses, and training the State workforce.

“Whoever leads in the AI revolution will lead the next generation of innovation and progress, and we’re making sure New York State is on the front lines,” Governor Hochul said. “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.”

Investing in AI Research for the Public Good

Expand Historic Empire AI Consortium

The Governor today secured $90 million in capital funding to substantially increase the computing power of Empire AI, expand access for SUNY researchers, and support the addition of new members including the University of Rochester, the Rochester Institute of Technology, and the Icahn School of Medicine at Mount Sinai.

Last year, Governor Hochul reached historic agreement with the state legislature as part of the FY25 Budget to establish Empire AI, a first-of-its-kind independent consortium to secure New York’s place at the forefront of artificial intelligence research. Researchers are already using Empire AI to conduct groundbreaking research, from medical breakthroughs in treating cancer to making better weather predictions, which will make life better for everyday New Yorkers. Current projects include:

• Developing technologies that could provide adaptive speech and language therapies to children with special needs.
• Building models of the climate, which can help communities prepare for future impact of extreme weather events.
• Building models to help analyze CT scans to better diagnose and treat lung cancer.

Now, Governor Hochul’s secured expansion will allow Empire AI to secure a future full-scale computing system that supports expanded capacity for SUNY and the addition of new members.

Protecting People from Digital Harms

Establish Nation-Leading Safeguards for AI Companions

“AI companions” are a type of AI chatbot designed to simulate human relationships with users– like being an AI friend or romantic partner. These systems remember personal details, adapt their personality to user preferences, and are designed to keep users engaged. Recent reports point to increasing use of AI companions, increased adoption of Companion-like features on existing platforms, and potential harms. Some experts warn that these systems are not safe for minors or vulnerable populations.

Governor Hochul has now established a nation-leading law to require AI companionship companies to implement safety features and interrupt users engaging for sustained periods with these systems. AI companions will be required to detect and implement a safety protocol if a user talks about suicidal ideation or self harm, including referring them to a crisis center, and will be required to notify and remind users that they are not interacting with a human.

Outlaw Artificial Intelligence-Generated Child Sexual Abuse Material

Bad actors are using AI-enabled “undressing” applications and websites to turn innocent photos of children into nude images and disseminate them online. In the first half of 2024, 16 such websites were visited 200 million times according to a California lawsuit. The explicit images created are often indecipherable from real ones, and can have the same devastating mental health, social, and reputational consequences for survivors.

Continuing her commitment to online safety, Governor Hochul’s Budget modernizes the state penal law to treat AI-generated child sexual abuse material as child pornography. This change applies to real images manipulated to become explicit using AI.

Seizing Opportunities From the AI Revolution

These victories build on the Governor’s initiatives announced as part of her State of the State this year to ensure equitable growth of the industry in New York.

Diversify the Artificial Intelligence Pipeline With AI Prep

To equalize access to AI careers, Empire State Development Corporation (ESD) will launch AI Prep: a workforce development initiative focused on the training and placement of disadvantaged college students into AI jobs. This free training will focus on applied problem solving and include mentorship support from leading technology companies, leading to internship opportunities at leading New York technology companies.

Increase Capital Access for Underrepresented Startups

Governor Hochul will work to close the gap in AI founder and employee representation by launching a public-private partnership with IBM and Armory Square Ventures to invest $20 million into New York AI start-ups. This partnership will help ensure that tomorrow’s innovation leaders have the resources to advance cutting-edge technologies here in New York.

Provide Artificial Intelligence Technical Assistance to Small Businesses

To assist small businesses with Artificial Intelligence education and adoption, ESD will partner with New York’s network of Entrepreneurship Assistance Centers to provide AI training to entrepreneurs and small businesses across the state. These Centers are strategically located in disadvantaged communities in every region of New York, opening the door to small businesses seeking to better capitalize on AI’s transformational power.

Provide Artificial Intelligence Upskilling for State Workforce

Governor Hochul will lead by example by ensuring the state workforce has access to training about how to responsibly use AI, especially as public sector employees. Training will provide basic education about how AI can be safely used in the workplace, and will be complemented with a secure generative AI toolset to help State employees with hands-on application of the training.

Support Workers Displaced by AI

Governor Hochul is committed to ensuring that the benefits of AI integration are compatible with an economy where every worker can thrive, and to understanding the potential impact of new technologies through real data. At the Governor’s direction, DOL has required businesses submitting notices of worker layoffs to convey whether a layoff is related to a businesses’ use of AI or other technological change.