The RAISE Act, backed by state Senator Andrew Gounardes and Assembly Member Alex Bores, would require large-scale AI developers to establish safety protocols for advanced machine learning systems
A coalition of artificial intelligence start-ups and prominent venture capital firms, including Andreessen Horowitz, has launched a campaign against a series of AI regulation bills being considered by the New York state legislature, warning they could damage the state’s role as a tech innovation hub.
The American Innovators Network (AIN), representing early-stage AI developers, is circulating a memo opposing the Responsible AI Strategy for Excellence (RAISE) Act and other legislative proposals, including the New York Artificial Intelligence Act and the Artificial Intelligence Training Data Transparency Act.
“We support thoughtful regulation of genuinely high-risk AI applications,” the memo states. “But as written, these bills go far beyond targeted oversight and instead threaten to undermine New York’s leadership as a hub for innovation and entrepreneurship.”
The RAISE Act, backed by state Senator Andrew Gounardes and Assembly Member Alex Bores, would require large-scale AI developers to establish safety protocols for advanced machine learning systems and impose penalties for non-compliance. Another proposal, from Senator Kristen Gonzalez, would mandate ethical and transparent AI development with associated reporting rules. A third bill, also from Gounardes and Bores, calls for disclosure of training data used in generative AI systems.
While AIN acknowledges the bills are well-intentioned, it argues they could hamper open-source innovation, entrench dominance by major tech companies, and subject small developers to disproportionate compliance burdens.
Despite industry pushback, lawmakers maintain the measures are necessary to protect the public. Gonzalez questioned why some in the tech sector oppose basic regulation, especially after prominent figures such as OpenAI’s Sam Altman previously called for oversight.
“When we first started this work, we were coming from a place of agreement,” Gonzalez said. “Any time we revolutionise an industry, especially one with high-risk technology, regulation should follow. Yet we’ve not seen the industry truly support even a single substantive bill.”
Bores was more pointed, referencing Andreessen Horowitz’s hiring of Daniel Penny, who was acquitted in the controversial death of Jordan Neely on a New York subway. “I don’t think we should take tech advice from a company that hires someone where there’s a video of them strangling a New Yorker to death,” he said.
Gounardes drew comparisons with basic automotive safety standards. “These people wouldn’t put their kids in a car going 150 miles an hour without a seatbelt or an airbag,” he said. “And the biggest voices in tech who are putting the most money into this are the same people who bankrolled Donald Trump’s campaign.”
AIN is preparing to invest over six figures in advertising, lobbying and grassroots efforts to raise awareness about what it calls “worst-case scenarios” under the proposed laws. These include concerns that teachers or domestic violence counsellors might face legal liability for using AI tools, or that students could be subject to rules intended for corporations like OpenAI.
“The future of responsible AI, startup jobs, and open technological access in New York is at stake,” the memo warns. “We and like-minded advocates for Little Tech and innovation are urging lawmakers to revise these bills to foster responsible innovation that does not stymie competition.”
