AI Frontier Institute

Requires covered businesses to annually report to the department of labor regarding the impact of artificial intelligence on hiring and the nature of artificial intelligence use for the previous year; requires the department of labor to file an annual report on the impact of artificial intelligence on hiring and the nature of artificial intelligence use in the state; establishes penalties for covered business that fail to submit such reports.

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New York Assembly Bill 9581-B amends the Labor Law by adding a new Section 201-j requiring 'covered businesses'—defined as entities doing business in New York that either employ more than 50 people or are publicly traded—to submit annual reports to the Department of Labor by March 1 each year. These reports must cover the prior calendar year and include employment data such as estimates of employees displaced or with reduced hours due to AI, employees hired or given increased hours due to AI, and positions left unfilled due to AI. Reports must also describe the nature of AI use, including objectives, human oversight, frequency of use, handling of sensitive personal data, and risk-reduction measures. The Department of Labor is required to develop standard reporting forms and may establish additional reporting requirements. The Department must compile the business-submitted reports into a statewide annual report—broken down by employment sector, geographic location, and business size—and submit it to the Governor and legislative leaders within 120 days of the March 1 deadline, simultaneously posting it publicly on the Department's website. Covered businesses that fail to comply face civil penalties of up to $500 per day of violation, though businesses have 90 days after notice to cure a violation, after which the commissioner may waive or reduce penalties.

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