Based on StateScoop, New York state lawmakers have passed the "Legislative Oversight of Automated Decision-making in Government Act," also known as the LOADinG Act. This landmark bill, if signed by Governor Kathy Hochul, will impose strict regulations on the use of artificial intelligence (AI) within state agencies. The legislation mandates state agencies to publicly disclose any use of AI-powered software or automated decision-making systems, including those already in operation. It also requires that AI applications undergo direct human review and oversight, with agencies generating biennial reports on their AI usage for the governor.

Additionally, the LOADinG Act prohibits the replacement of government employees with AI systems and stipulates that agencies must obtain approval before deploying any automated decision-making technologies. This bill, sponsored by New York state Sen. Kristen Gonzalez, is a pioneering move, making New York the first state to enforce such stringent AI regulations within its own governmental operations. The legislation aims to ensure transparency and accountability in the use of AI, reflecting concerns about the potential implications of AI in public administration.

Other states have enacted laws regulating AI in the private sector, but New York's approach is unique in its focus on internal government use. Similar efforts are underway in states like California, which is running pilot programs to evaluate AI technologies. The New York legislature has until the end of the year to send the bill to Governor Hochul, who has ten days to act on it once delivered. If she does not act, the bill will automatically become law.