Requires covered businesses to annually report to the department of labor regarding the impact of artificial intelligence on hiring and the nature of artificial intelligence use for the previous year; requires the department of labor to file an annual report on the impact of artificial intelligence on hiring and the nature of artificial intelligence use in the state; establishes penalties for covered business that fail to submit such reports.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9581B
SPONSOR: Bronson TITLE OF BILL:
An act to amend the labor law, in relation to requiring covered busi-
nesses to submit annual reports on the impact of artificial intelligence
on hiring and the nature of artificial intelligence use
PURPOSE:
To require large companies and publicly traded companies to report annu-
ally to the Department of Labor on the impact of artificial intelligence
(Al) on their hiring and business practices; and to require the Depart-
ment produce an annual report on the basis of such information.
SUMMARY OF PROVISIONS:
Section one creates a new Labor Law section 201-j, including:
Subdivision 1: Defines "covered business,"
Subdivision 2: Sets out reporting requirements for covered businesses to
the Department of Labor, including that covered businesses shall
provide:
(a) employment data (such as hiring, layoffs, attrition, or work hour
changes) related to Al use.
(b) information on the nature of Al use (such as objectives, human over-
sight, and protections.)
Subdivision 3: Sets out responsibilities of the Department, including
that they shall develop standard reporting forms and procedures and may
develop additional reporting requirements related to Al use.
Subdivision 4: Requires the Department produce an annual report on the
basis of the information provided by covered businesses, including pres-
entation of aggregate data analyzed by employment sector, geographic
location, and business size.
Subdivision 5: Sets out penalties for failure to report by covered busi-
nesses. Section 2. Effective date.
JUSTIFICATION:
The capabilities of Al have improved rapidly in recent years, promising
to fundamentally alter many industries in New York and across the world.
Improvements to generative Al, for example, which can generate texts,
images, and other products in response to text prompts, will reshape how
communications, marketing, graphic design, and countless other indus-
tries do business.
Data on Al's impact in the labor market is emerging, varied, and
complex. Some research suggests Al adoption was responsible for almost
55,000 layoffs in 2025, or almost 5% of all layoffs nationally,' while
others argue that Al will create jobs or allow workers to focus on more
productive tasks, There are also questions about the nature of Al job
replacement, such as whether it will lead directly to layoffs versus
discouraging future hiring through attrition, Finally, Al adoption and
labor market impact will vary by sector, and potentially hit certain
types of employment harder than others. The RAND Corporation recently
concluded, summarizing the literature generally, that "more data
collection is necessary" to understand the impact of Al on labor
markets,'
With this in mind, and given the rapid pace of Al development and
adoption, it is critical that New York investigate these questions in as
close to real time as possible. This bill does so by requiring large
companies and publicly traded companies to annually report to the
Department of Labor on the labor impact of Al use. This includes both
quantitative data (such as numbers of jobs lost, added, or not filled,)
and descriptive information (such as what forms of human oversight they
use and how they protect private data.) The Department is then directed
to report annually to the legislature and the public, using aggregate
data, on Al impacts by sector, business size, and geography.
Al development is a rapid, disruptive, and international trend, In addi-
tion to this bill there is similar pending legislation in Congress with
bipartisan support as of December, 2025.3 New York can and must be a
national leader in understanding the impact of Al on our labor market in
order to ensure worker protection, business sustainability, and informed
policymaking in this emerging sector.
LEGISLATIVE HISTORY:
New Bill.
FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
This act shall take effect immediately
1 https://www.cnbc.com/2025/12/21/a-job-cuts-amazon-microsoft-and-more-
cite-ai-for-2025-layoffs.html
2 https://www.rand.orq/content/dam/rand/pubs/perspectives/PEA3800/
PEA3888-3/RAND_PEA3888-3.pdf
3 https://www.hawley.senate.gov/hawley-warner-to-introduce-bipartisan-
legislation-revealing-number-of-jobs-lost-to-ai/
STATE OF NEW YORK
________________________________________________________________________
9581--B
IN ASSEMBLY
January 21, 2026
___________
Introduced by M. of A. BRONSON -- read once and referred to the Commit-
tee on Labor -- committee discharged, bill amended, ordered reprinted
as amended and recommitted to said committee -- again reported from
said committee with amendments, ordered reprinted as amended and
recommitted to said committee
AN ACT to amend the labor law, in relation to requiring covered busi-
nesses to submit annual reports on the impact of artificial intelli-
gence on hiring and the nature of artificial intelligence use
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The labor law is amended by adding a new section 201-j to
2 read as follows:
3 § 201-j. Artificial intelligence impact assessments. 1. Definition.
4 For purposes of this section, "covered business" shall mean a business
5 entity doing business in the state and: (a) employs more than fifty
6 people; or (b) is a publicly traded entity.
7 2. Reporting requirement. On or before March first of every year, a
8 covered business shall report to the department regarding the impact of
9 artificial intelligence on its hiring and the nature of its artificial
10 intelligence use in the calendar year ending the preceding December
11 thirty-first. Such report shall include:
12 (a) Employment data, including but not limited to:
13 (i) An estimate of the number of employees displaced, or whose hours
14 have been reduced, due in full or in part to use of artificial intelli-
15 gence;
16 (ii) An estimate of the number of employees hired, or whose hours have
17 been increased, due in full or in part to use of artificial intelli-
18 gence; and
19 (iii) An estimate of the number of positions previously filled that
20 the covered business has decided not to fill due in full or in part to
21 use of artificial intelligence; and
22 (b) Information on the nature of artificial intelligence usage,
23 including but not limited to:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14332-04-6
A. 9581--B 2
1 (i) Descriptions of the objectives of the use of artificial intelli-
2 gence;
3 (ii) Information regarding any human oversight of artificial intelli-
4 gence;
5 (iii) Information on the frequency and length of use of artificial
6 intelligence;
7 (iv) Information on any use of artificial intelligence in relation to
8 sensitive personal data, including storage and access protections
9 related to use of artificial intelligence in relation to such personal
10 data; and
11 (v) Measures in place for oversight, risk reduction, or other
12 protections related to use of artificial intelligence.
13 3. Responsibilities of the department. The department shall develop
14 standard reporting forms and processes for covered businesses to submit
15 the reports required pursuant to subdivision two of this section. The
16 department may develop additional reporting requirements related to the
17 hiring and business impacts of utilization of artificial intelligence by
18 covered businesses.
19 4. Annual report. (a) The department shall review the reports submit-
20 ted by covered businesses pursuant to subdivision two of this section
21 and shall prepare an annual report on the impact of artificial intelli-
22 gence on hiring and the nature of artificial intelligence usage in the
23 state based on the department's review of such reports submitted pursu-
24 ant to subdivision two of this section.
25 (b) The department shall submit the report required pursuant to para-
26 graph (a) of this subdivision to the governor, the temporary president
27 of the senate, the minority leader of the senate, the speaker of the
28 assembly, and the minority leader of the assembly within one hundred
29 twenty days of the covered business reporting deadline established
30 pursuant to subdivision two of this section. Such report shall be made
31 publicly available on the department's website at the same time as such
32 report is submitted to the governor and legislature.
33 (c) The report required pursuant to paragraph (a) of this subdivision
34 shall include, but not be limited to, presentation of aggregate data
35 regarding employment impacts, objectives, and implementation of artifi-
36 cial intelligence by covered businesses, including analysis of such
37 impacts by employment sector, geographic location, and business size.
38 5. Enforcement. (a) A covered business who fails to report pursuant to
39 the requirements of this section shall be subject to a civil penalty of
40 not more than five hundred dollars for each day such covered business
41 remains in violation of such reporting requirements.
42 (b) Upon notice of a violation of this section, a covered business
43 shall have ninety days to resolve such violation to the satisfaction of
44 the commissioner. If the commissioner is satisfied that the violation
45 has been cured within the ninety-day period, the commissioner shall
46 waive or reduce the applicable penalties under this subdivision.
47 § 2. This act shall take effect immediately.
