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New York Passes AI Reporting Law Requiring Companies to Disclose Hiring Impact
New York’s legislature has just passed a landmark measure that will force large employers and publicly traded companies to report, each year, how artificial intelligence shapes their hiring and business practices. The bill—S.8706 in the Senate and A.9581 in the Assembly—was approved in a late‑session vote and will now go to Governor Kathy Hochul for signature.
Under the new rules, covered firms must submit detailed employment data to the New York Department of Labor. The data will cover hiring, layoffs, attrition, and changes in work hours that can be traced back to AI tools, and the department will compile an annual report that summarizes the aggregate impact of AI across the state’s economy.
The legislation was introduced by Democratic State Senator Michelle Hinchey of Kingston and Assemblyman Harry Bronson of Rochester. In the Senate, the measure passed 38‑22, with Republican Senator George Borrello of Sunset Bay voting against. In the Assembly, the bill cleared 105‑35; Republican Assemblymen Andrew Molitor of Westfield and Joe Sempolinski of Canisteo opposed it. Companies that fail to file the required reports face a penalty of $500 per day. Senator Borrello criticized the fine, calling it “onerous” and questioning how the department would determine whether AI tools such as ChatGPT are used in hiring or other business functions. He suggested that the department could conduct surveys or contact employers directly to assess AI’s impact, noting that many businesses are leaving the state.
The new reporting framework also requires firms to describe not only the quantity of employment changes but also the nature of their AI use. Companies must outline the objectives of the AI system, the level of human oversight, and any safeguards in place. Senator Hinchey cited national data indicating that AI was linked to roughly 55,000 layoffs in 2025—about five percent of all U.S. layoffs that year—as a justification for the requirement. She emphasized that the law is meant to illuminate how AI is reshaping the workforce and to inform state policies on unemployment and workforce development.
The bill’s timing follows a recent Gallup poll that highlighted mixed attitudes toward AI in the workplace. Conducted in February, the poll found that 30 percent of employees use AI tools daily or several times a week, while 20 percent use them a few times a month or a year. About 40 percent of workers reported that their organization has adopted AI, and two‑thirds of those users said the technology had a positive impact on their productivity. Managers were more likely than individual contributors to report increased efficiency, with 70 percent of leaders using AI at least a few times a year stating it improved their work. The poll also revealed that AI benefits are uneven across sectors: 60 percent of workers in managerial, health‑care, and technology roles reported productivity gains, compared with 45 percent in service jobs. Among employees who had AI tools available but chose not to use them, 46 percent said they preferred to keep working the way they had, while 40 percent cited ethical opposition, privacy concerns, or doubts about AI’s usefulness.
The new reporting law is the first state‑level requirement that compels companies to disclose how AI influences hiring decisions and workforce dynamics. By mandating annual data collection, the legislation aims to provide a clearer picture of AI’s labor‑market effects and to guide future workforce initiatives. The bill is currently awaiting the governor’s signature; if enacted, it will establish a framework for monitoring AI’s impact on employment across New York’s largest employers and publicly traded firms. Unresolved questions remain about how the Department of Labor will verify compliance, how it will interpret the fine structure, and how the aggregated data will be used to shape state policy. The law’s passage marks a significant step in the state’s broader efforts to regulate AI transparency and accountability.
Under the new rules, covered firms must submit detailed employment data to the New York Department of Labor. The data will cover hiring, layoffs, attrition, and changes in work hours that can be traced back to AI tools, and the department will compile an annual report that summarizes the aggregate impact of AI across the state’s economy.
The legislation was introduced by Democratic State Senator Michelle Hinchey of Kingston and Assemblyman Harry Bronson of Rochester. In the Senate, the measure passed 38‑22, with Republican Senator George Borrello of Sunset Bay voting against. In the Assembly, the bill cleared 105‑35; Republican Assemblymen Andrew Molitor of Westfield and Joe Sempolinski of Canisteo opposed it. Companies that fail to file the required reports face a penalty of $500 per day. Senator Borrello criticized the fine, calling it “onerous” and questioning how the department would determine whether AI tools such as ChatGPT are used in hiring or other business functions. He suggested that the department could conduct surveys or contact employers directly to assess AI’s impact, noting that many businesses are leaving the state.
The new reporting framework also requires firms to describe not only the quantity of employment changes but also the nature of their AI use. Companies must outline the objectives of the AI system, the level of human oversight, and any safeguards in place. Senator Hinchey cited national data indicating that AI was linked to roughly 55,000 layoffs in 2025—about five percent of all U.S. layoffs that year—as a justification for the requirement. She emphasized that the law is meant to illuminate how AI is reshaping the workforce and to inform state policies on unemployment and workforce development.
The bill’s timing follows a recent Gallup poll that highlighted mixed attitudes toward AI in the workplace. Conducted in February, the poll found that 30 percent of employees use AI tools daily or several times a week, while 20 percent use them a few times a month or a year. About 40 percent of workers reported that their organization has adopted AI, and two‑thirds of those users said the technology had a positive impact on their productivity. Managers were more likely than individual contributors to report increased efficiency, with 70 percent of leaders using AI at least a few times a year stating it improved their work. The poll also revealed that AI benefits are uneven across sectors: 60 percent of workers in managerial, health‑care, and technology roles reported productivity gains, compared with 45 percent in service jobs. Among employees who had AI tools available but chose not to use them, 46 percent said they preferred to keep working the way they had, while 40 percent cited ethical opposition, privacy concerns, or doubts about AI’s usefulness.
The new reporting law is the first state‑level requirement that compels companies to disclose how AI influences hiring decisions and workforce dynamics. By mandating annual data collection, the legislation aims to provide a clearer picture of AI’s labor‑market effects and to guide future workforce initiatives. The bill is currently awaiting the governor’s signature; if enacted, it will establish a framework for monitoring AI’s impact on employment across New York’s largest employers and publicly traded firms. Unresolved questions remain about how the Department of Labor will verify compliance, how it will interpret the fine structure, and how the aggregated data will be used to shape state policy. The law’s passage marks a significant step in the state’s broader efforts to regulate AI transparency and accountability.
