Democrat & Chronicle Opinion: To protect its leadership in innovation, New York should lead smart AI policy
June 16th, 2025
New York has long stood at the forefront of American innovation. Take my hometown of Rochester: From Kodak’s pioneering role in the development of modern photography to the contribution of local scientists and engineers in ensuring the success of the Hubble Space Telescope, the region has long been synonymous with advanced technologies. Today, we’re poised to extend this legacy as we embrace the promise of fortifying our domestic semiconductor supply chain and the revolutionary potential of artificial intelligence. As AI becomes ubiquitous, the Empire State’s deep-rooted history of ingenuity and resilience places it in a unique position to lead in the development of these transformative technologies.
At the same time, several concerning bills introduced in Albany threaten to undermine this momentum. The implications for our state’s competitiveness, both nationally and globally, could be profound. Artificial intelligence is reshaping nearly every part of our economy. To fully harness the power of a general-purpose technology like AI, our leaders must proceed with care — balancing its extraordinary potential with the significant economic, social, and ethical consequences it carries. Optimizing the positive transformative power of AI requires a thoughtful and deliberative approach to developing regulations and policies, not rushed laws based on doomsday scenarios.
The New York State Legislature has seen more than 130 AI-focused bills introduced, some with sweeping provisions with the potential to wrap AI development and deployment in red tape and undermine our leadership in epoch-defining innovations. As with all other online and offline harms, let’s focus on stopping and punishing bad outcomes, not making it difficult to use the technology for good.
Setting reasonable guidelines and guardrails on powerful technologies are noble goals. In fact, it’s one that I’m sure all of us can agree on. However, some of the measures being pushed in Albany would place enormous strains on developers, especially smaller startups. They oversimplify AI platforms and pass onerous compliance burdens that would impact everyone employing these innovations, from small businesses to hospital networks.
Such a move would have dramatic consequences for our economy. Throughout New York AI has become a driver of economic growth. The power of these technologies, matched by our diverse and talented workforce, is estimated to contribute to an economic boom worth $320 billion by 2038. Comprising this boom is a thriving ecosystem of companies of every size using artificial intelligence to improve their services, boost productivity, and grow more competitive.
At a smaller scale, AI has improved the services we consistently rely on. Whether it’s new customer service chatbot functions that small businesses use to improve the consumer experience or its ability to help healthcare providers streamline clinical documentation and deliver faster and more accurate diagnoses, we’re already seeing it change how we work and receive critical services.
Gov. Kathy Hochul has gone all-in on ensuring New York and the regions upstate lead the way in research and development. With this support, we have a real opportunity to be a national, and global, leader in AI innovation. The regulatory environment should support those initiatives and investments. A predictable and consistent regulatory environment will cultivate a stronger innovation ecosystem. If current proposals pass without collaboration with stakeholders, we could see the promise of an AI-enabled future — and the businesses building it — slip away, seeking greener pastures in other states or countries.
There’s no need for a race to regulation. It’s time to pause, focus, and build a smart framework that protects the public without stifling progress. With careful policy and continued investment, the Empire State can lead the next wave of AI breakthroughs. We can’t let rushed legislation close the door on that future.
Justin Wilcox is executive director of Upstate United, a nonpartisan business and taxpayer advocacy coalition focused on growing the upstate economy.