New York Governor Kathy Hochul has unveiled a comprehensive plan to strengthen the regulation of artificial intelligence (AI) and digital technology within the state. As part of this initiative, she announced the establishment of a new Office of Digital Innovation, Governance, Integrity and Trust (DIGIT), which aims to oversee digital safety and technology governance. This move positions New York as a frontrunner in AI regulation at a time when the federal government is considering measures that could limit state-level oversight.
During her State of the State address on January 13, 2026, Hochul emphasized a series of proposals aimed at protecting both consumers and workers in the evolving digital landscape. The DIGIT office will be tasked with coordinating efforts related to online safety, algorithmic pricing, AI-generated content, and other emerging technologies. While specific details about the office’s structure and authority were not disclosed, it is anticipated that DIGIT will function as a watchdog within the New York Department of Financial Services.
In addition to establishing DIGIT, Hochul’s agenda includes advancing legislation to regulate AI-generated content. This includes requirements for labeling such content with “provenance data,” which will disclose its source and creator. The governor’s proposals also target deceptive AI-generated material, such as deepfakes, and aim to prohibit the non-consensual use of these technologies, particularly in the political arena, during election periods. Legislation will also be introduced to combat misinformation regarding election logistics, voter registration, and eligibility.
Consumer privacy will be another critical focus of the new proposals. Governor Hochul plans to advance legislation that mandates data brokers operating within New York to register with the state. This would enable consumers to make a single, centralized request for the deletion of their personal information held by these brokers, enhancing individual control over personal data.
This latest initiative builds on a series of recent legislative efforts aimed at AI and technology governance in New York. The state has enacted various laws to protect youth online, regulate AI companions, and address issues related to AI-enabled child exploitation, among others. Notably, the Responsible AI Safety and Education (RAISE) Act, signed into law in December 2025, imposes safety and transparency requirements on developers of advanced AI models and establishes a dedicated state oversight office, further solidifying New York’s leadership in AI regulation.
In response to the surge in AI-generated content, New York has instituted additional rules requiring advertisers to disclose the use of “synthetic performers” in their campaigns. The Algorithmic Pricing Disclosure Act, effective November 10, 2025, mandates that companies inform consumers when their personal data is used for pricing decisions. These laws reflect New York’s proactive approach to ensuring transparency and consumer protection in an increasingly digital economy.
Moreover, New York City has taken steps to regulate the use of automated employment decision tools (AEDTs). Effective January 1, 2023, a local law requires bias audits for AEDTs that significantly influence employment decisions, ensuring that candidates and employees are informed about the use of such tools in their evaluations.
As Hochul’s AI agenda unfolds, it is likely to impose new compliance requirements on employers, advertisers, and technology firms. However, the state’s efforts may create friction with the federal administration, which has pursued a deregulatory approach to stimulate AI industry growth. In December 2025, President Donald Trump issued an executive order asserting federal preemption over certain state laws governing AI, signaling potential challenges ahead for New York’s regulatory ambitions.
With Governor Hochul’s commitment to enhancing digital safety and regulating emerging technologies, New York is poised to continue its leadership role in AI governance. The developments underscore a broader debate over the balance between regulation and innovation in the rapidly evolving landscape of artificial intelligence.
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