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Bill

A 9581

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

2025 Regular Session Introduced by Harry Bronson and 1 co-sponsor

Requires NY businesses >50 employees or public, to annually report AI’s impact on hiring and employment, with DOL publishing a statewide analysis.

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Bill Summary · A 9581

Summary of NY A. 9581-B (2025-2026) – Artificial Intelligence Impact Assessments

Purpose and intent

This bill would require certain covered businesses operating in New York to annually report to the Department of Labor about how artificial intelligence (AI) is used in their hiring processes and more broadly how AI affects employment. The goal is to establish transparency around AI use, its impact on jobs (hiring, hours, displacement, and positions not filled), and the safeguards or oversight measures accompanying AI usage. The department would also compile an annual state-level report analyzing these disclosures.

Key provisions

1) Definitions

  • Covered business: A business entity doing business in New York that either (a) employs more than 50 people or (b) is publicly traded.

2) Annual reporting requirements (to be completed by March 1 each year)

For the calendar year ending December 31 of the prior year, covered businesses must report to the Department of Labor on:
- Employment data:
- (i) Estimated number of employees displaced or whose hours were reduced due to AI.
- (ii) Estimated number of employees hired or whose hours were increased due to AI.
- (iii) Estimated number of previously filled positions the business decided not to fill due to AI.
- Nature of AI usage:
- (i) Objectives of the AI use.
- (ii) Any human oversight of AI.
- (iii) Frequency and duration of AI use.
- (iv) AI use involving sensitive personal data, including storage/access protections related to such data.
- (v) Oversight, risk reduction, or other protective measures in place for AI.

3) Department responsibilities

  • The Department of Labor must develop standard reporting forms and processes for these submissions.
  • The department may add additional reporting requirements related to AI’s hiring and business impacts.

4) Annual department report

  • The department will review the collected reports and produce an annual state-level report on AI’s impact on hiring and the nature of AI usage.
  • The annual report must be delivered to the Governor, the Temporary President of the Senate, the Senate minority leader, the Speaker of the Assembly, and the Assembly minority leader within 120 days after the covered-business reporting deadline.
  • The annual report will be publicly available on the department’s website when submitted to the Governor and Legislature.
  • The report should include aggregate data by employment sector, geographic location, and business size, analyzing employment impacts, objectives, and implementation of AI.

5) Enforcement and penalties

  • Penalties: If a covered business fails to report, it can be fined up to $500 per day.
  • Cure period: Upon notice of noncompliance, the business has 90 days to remedy the violation to the commissioner’s satisfaction; penalties may be waived or reduced if cured within this period.

6) Effective date

  • The act would take effect immediately upon enactment.

Who is affected

  • Businesses in New York that either employ more than 50 people or are publicly traded.
  • The New York Department of Labor, which would administer forms, collect data, and publish the state annual AI impact report.

Practical implications and potential impact

  • Transparency and accountability: The bill creates a formal mechanism to track AI’s influence on hiring and workforce dynamics.
  • Data collection challenges: Accurate estimation of displaced workers, hiring increases, and unfilled positions attributable to AI will rely on internal data practices and definitions, which may vary across firms.
  • Privacy considerations: The reporting would require disclosure of AI usage related to sensitive personal data and protections in place, potentially prompting firms to review data governance.
  • Enforcement: A civil penalty framework provides a compliance incentive, with a 90-day cure period offering a pathway to avoid penalties if corrected promptly.
  • Public reporting: The annual state report would inform policymakers and the public about AI adoption trends and workforce impacts across sectors and geographies.

Summary

A. 9581-B mandates annual AI impact disclosures from medium-to-large or publicly traded New York businesses, detailing effects on employment and the specifics of AI use and safeguards. The Department of Labor would standardize reporting, aggregate data for an annual statewide analysis, and publish findings, with enforceable penalties for noncompliance.

Compiled from official sources — confirm details with the bill’s official record.

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