What does the New York LOADinG Act cover?
Answer
New York S7543-B (the LOADinG Act — Legislative Oversight of Automated Decision-making in Government) was signed into law on December 21, 2024, making New York the first state to impose comprehensive oversight on how state agencies use automated decision-making systems and AI. The law requires state agencies to: (1) publicly disclose every automated decision-making system in use, including vendor, purpose, start date, and the extent to which the system replaces human judgment; (2) obtain authorization before using any automated decision-making system and ensure meaningful human review; (3) publish impact assessments for any new or substantially modified system; and (4) maintain human oversight — no agency decision-making process may be fully delegated to an automated system. Enforcement is through legislative reporting obligations. The LOADinG Act applies to New York state agencies only; it does not directly impose obligations on private businesses. Private-sector firms in New York should monitor pending bills like S4394 (employment decision tools) and NYC Local Law 144 for automated employment decisions.
Applicable Regulations
LOADinG Act (Legislative Oversight of Automated Decision-making in Government)
Makes New York the first state to impose comprehensive oversight on how state agencies use automated decision-making systems and AI. Mandates public disclosure of existing AI systems, prohibits unauthorized agency AI use without meaningful human review, and requires impact assessments. Government-sector law; does not directly impose obligations on private businesses.
Key Requirements
Full State Analysis
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- Does New York's AI law apply to the private sector? New York S7543-B (the LOADING Act) primarily applies to state government agencies that use automated decision systems, requiring inventories, impact assessments, and public transparency reports. Private sector employers are not directly covered by S7543-B. However, private sector employers in New York City who use AI in hiring are subject to NYC Local Law 144, which requires annual bias audits and candidate disclosure for automated employment decision tools.