New York launches 2026 with new AI proposals
State leaders are placing AI firmly at the centre of early 2026 policy debates, combining new safeguards with efforts to support innovation. The approach reflects growing attention to how AI affects everyday services, consumer trust, and economic development.
New York is beginning 2026 with a renewed push to shape how AI is used, focusing on consumer protection while continuing to attract major tech investment. The move follows the recent signing of the RAISE Act, a landmark law aimed at enhancing safety standards for advanced AI models, and signals that state leaders intend to remain active in AI governance this year.
Governor Kathy Hochul has unveiled a new package of proposals, primarily aimed to protecting children online. The measures would expand age verification requirements, set safer default settings on social media platforms for minors, limit certain AI chatbot features for children, and give parents greater control over their children’s financial transactions. The proposals, part of Hochul’s annual ‘State of the State’ agenda, must still pass the state legislature before becoming law.
At the same time, New York is positioning itself as a welcoming environment for AI and semiconductor development. Hochul recently announced a $33 million research and development expansion in Manhattan by London-based AI company ElevenLabs.
In addition, Micron is expected to begin construction later this month on a massive semiconductor facility in White Plains, part of a broader $100 billion investment plan that underscores the state’s ambitions in advanced technology and manufacturing.
Beyond child safety and economic development, state officials are also focusing to how algorithms impact everyday costs. Attorney General Letitia James is investigating Instacart over allegations that its pricing systems charge different customers different prices for the same products.
The probe follows the implementation of New York’s Algorithmic Pricing Disclosure Act, which took effect late last year, requiring companies to be more transparent about the use of automated pricing tools.
The attorney general’s office is also examining broader accountability issues tied to AI systems, including reports involving the misuse of generative AI. Together, these actions underscore New York’s commitment to addressing voter concerns regarding affordability, safety, and transparency, while also harnessing the economic potential of rapidly evolving AI technologies.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!