In our December 30 newsletter, we reported on New York Governor Hochul signing the LOADinG Act (S7543 / A9430) into law. However, once this year’s legislative session started, we began tracking companion chapter amendment bills (S 822 & A 433) that sought to revise the LOADinG Act. The bills passed the New York legislature earlier this week and were signed into law by Governor Hochul on February 14.

As it was originally constructed the LOADinG Act essentially did three things. First, it required state agencies to have meaningful human review when using automated decision-making systems (ADMS) for certain government functions. It also required state agencies to prepare impact assessments for those activities and submit them to the governor and legislature. Finally, it protected employees who are subject to collective bargaining agreements from negative impacts from the use of ADMS. 

As amended, the law removes the provisions regarding meaningful human review and impact assessments. In lieu of those provisions, the law now requires state agencies that utilize automated employment decision-making tools to publish a list of such tools on their websites. The law defines “automated employment decision-making tool” as “any software that uses algorithms, computational models, or artificial intelligence techniques, or a combination thereof to materially automate or replace human decision-making regarding employment, including but not limited to wages and other compensation, hiring, selection for recruitment, discipline, promotion, and termination.”

The amended law also requires the state to maintain an inventory of state agency AI systems. The law defines AI system as a “machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments that, when used, may ‘directly impact the public.’”

In turn, "directly impact the public" is defined to mean when an AI system “would control, have a material impact on, or meaningfully influence the outcome of activities that impact the safety, welfare, or rights of the public. Such activities include but are not limited to assessments or decisions about individuals including in law enforcement, housing, hiring and employment, financial, educational, or healthcare contexts, decisions regarding access to or eligibility for government benefits or about child welfare, or the functioning of emergency services or critical infrastructure.

Finally, the law retains employee protections, providing that the use of AI systems shall not affect the existing rights of employees pursuant to an existing collective bargaining agreement or the existing representational relationships among employee organizations or the bargaining relationships between the employer and an employee organization. The use of AI systems also cannot result in employee discharge, displacement or loss of position or the transfer of existing duties and functions currently performed by employees to an AI system. The use of AI systems also cannot alter the rights, benefits and privileges of existing state employees.

The law goes into effect July 1, 2025.