AI Frontier Institute

Requires state units to purchase a product or service that is or contains an algorithmic decision system that adheres to responsible artificial intelligence standards; specifies content included in responsible artificial intelligence standards; requires the commissioner of taxation and finance to adopt certain regulations; alters the definition of unlawful discriminatory practice to include acts performed through algorithmic decision systems.

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New York Assembly Bill 5216 (2025) amends the State Finance Law and Executive Law to regulate the state's purchase and use of algorithmic decision systems (ADS). Section 1 adds a new subdivision 10 to Section 165 of the State Finance Law, requiring any state unit—defined as the state, governmental agencies, political subdivisions, or public benefit corporations—to purchase only products or services containing an ADS that adhere to responsible artificial intelligence standards. Those standards include: (i) avoidance of harm by minimizing risks of physical or mental injury, unjustified disclosure of information, and unwarranted damage to property, reputation, or environment; (ii) transparency through full disclosure of the system's capabilities, limitations, and potential problems; (iii) primacy of fairness by eliminating discrimination, embedding equality and justice as ADS goals, and providing avenues for feedback to redress harms; and (iv) comprehensive evaluation and analysis of the ADS's impact and potential risks. The Commissioner of Taxation and Finance is directed to adopt regulations to implement these requirements. Section 2 amends subdivision 4 of Section 292 of the Executive Law to expand the definition of 'unlawful discriminatory practice' to expressly include prohibited discriminatory acts performed through an algorithmic decision system as defined in the new subdivision. The act takes effect January 1 following enactment.

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