New York is considering two bills to rein in the AI industry

New York Takes Bold Steps to Regulate AI in Journalism and Pause Data Center Expansion

In a sweeping move to address the rapidly evolving intersection of artificial intelligence and media, New York lawmakers have introduced two groundbreaking pieces of legislation that could reshape the state’s technological and journalistic landscape. The New York Fair Artificial Intelligence Requirements in News Act (NY FAIR News Act) and S9144, a proposed moratorium on new data center construction, signal a proactive approach to managing the societal and infrastructural impacts of AI and digital expansion.

NY FAIR News Act: Transparency and Accountability in AI-Generated Journalism

The NY FAIR News Act, spearheaded by Senator Patricia Fahy and Assemblymember Nily Rozic, aims to establish clear guidelines for the use of generative AI in news production. Under the proposed law, any news content “substantially composed, authored, or created through the use of generative artificial intelligence” must carry a prominent disclaimer. This measure is designed to ensure that readers are fully aware when AI has played a significant role in crafting the news they consume.

But the bill goes further. It mandates that all AI-generated content be reviewed and approved by a human editor with “editorial control” before publication. This requirement underscores the lawmakers’ commitment to preserving journalistic integrity and preventing the unchecked dissemination of AI-generated misinformation.

The legislation also includes provisions to protect newsroom employees and confidential sources. Organizations would be required to disclose to their staff how and when AI is being used in their workflows. Additionally, safeguards would be implemented to prevent AI systems from accessing sensitive information, particularly details about confidential sources—a critical concern in investigative journalism.

“The NY FAIR News Act is about ensuring transparency, accountability, and trust in the news we consume,” said Senator Fahy in a press release. “As AI becomes more integrated into journalism, we must establish clear boundaries to protect both the public and the integrity of the profession.”

S9144: A Three-Year Pause on New Data Centers

While the NY FAIR News Act focuses on the ethical use of AI in journalism, S9144 addresses a pressing infrastructural challenge: the rapid proliferation of data centers in New York. The bill proposes a three-year moratorium on the issuance of permits for new data centers, citing concerns over rising energy costs and the strain on the state’s electrical grid.

According to National Grid New York, requests for “large load” connections have tripled in just one year, with an estimated 10 gigawatts of demand expected to be added over the next five years. This surge is driven in part by the growing energy needs of data centers, which are essential for powering AI systems, cloud computing, and other digital infrastructure.

New York is already home to over 130 data centers, according to Data Center Map, and the proposed moratorium aims to give the state time to assess the long-term impacts of this expansion. Rising electric and gas rates for residential, commercial, and industrial customers have added urgency to the issue, with lawmakers warning that unchecked growth could exacerbate energy affordability challenges.

“The moratorium is not about stifling innovation,” said Assemblymember Rozic. “It’s about ensuring that our infrastructure can support the demands of the future without compromising the well-being of New Yorkers today.”

A Balancing Act: Innovation, Ethics, and Infrastructure

Together, these bills reflect New York’s efforts to strike a balance between fostering technological innovation and addressing its potential risks. The NY FAIR News Act seeks to harness the benefits of AI in journalism while safeguarding against its misuse, while S9144 aims to manage the infrastructural demands of the digital age without overburdening the state’s resources.

As AI continues to transform industries and societies, New York’s proactive stance could serve as a model for other states and countries grappling with similar challenges. The proposed legislation is currently under review, and its passage could mark a significant milestone in the regulation of AI and digital infrastructure.

For now, all eyes are on Albany as lawmakers weigh the potential impacts of these bills. Whether they pass or not, the conversation they’ve sparked is a testament to the growing recognition that the future of technology must be shaped with care, transparency, and a commitment to the public good.

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