NY S03008: Enacts into law major components of legislation necessary to implement the state transportation, economic development and environmental conservation …

In one paragraph

New York's 2025-26 budget bill (Chapter 58 of 2025) includes two AI laws. Part U requires operators of AI companions (AI that simulates a sustained human-like relationship) to make reasonable efforts to detect and address suicidal ideation or self-harm and refer users to crisis services such as 988, and to tell users at the start of an interaction and every three hours that they are not talking to a human; the Attorney General can seek up to $15,000 a day (in effect since November 5, 2025). Part X requires businesses using personalized algorithmic pricing to show 'THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA' (since July 8, 2025).

Plain-English summary, written with AI assistance. The official text controls.

What it means for business

If you run an AI companion in New York, you need a suicide-risk referral protocol and recurring not-human notices. If an algorithm sets your prices using personal data, show the required disclosure.

Key provisions

1. 1Part U adds General Business Law Article 47 (§§ 1700-1704), AI companion models: AI that simulates a sustained relationship by remembering prior interactions, asking unprompted emotion-based questions and sustaining personal dialogue; customer-service, productivity, research and internal business systems are excluded
2. 2AI companion operators must run a protocol that makes reasonable efforts to detect and address user expressions of suicidal ideation or self-harm and refers users to crisis services such as the 988 hotline or a crisis text line
3. 3A clear notice that the user is not communicating with a human at the start of an interaction (needed no more than once a day) and at least every three hours in continuing interactions
4. 4Attorney General enforcement of Part U: injunctions and civil penalties up to $15,000 per day, paid into a new suicide prevention fund; effective November 5, 2025
5. 5Part X adds General Business Law § 349-a: an entity that sets a price with personalized algorithmic pricing (dynamic pricing set by an algorithm using a consumer's personal data) must show 'THIS PRICE WAS SET BY AN ALGORITHM USING YOUR PERSONAL DATA' with the price
6. 6Part X exempts insurers, financial institutions and affiliates subject to the Gramm-Leach-Bliley Act privacy rules, financial institutions under the Financial Services Law, and lower prices under existing subscriptions; the Attorney General first sends a cease-and-desist letter, then may seek injunctions and up to $1,000 per violation; effective July 8, 2025
7. 7Signed May 9, 2025 (Chapter 58 of the Laws of 2025), the transportation, economic development and environmental conservation budget bill

Latest legislative action

May 9, 2025. SIGNED CHAP.58

Sponsors (showing 5 of 7)

Roll call votes

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