AI Safety Bill Defanged: What Businesses Must Know for 2025

New York’s Landmark AI Safety Bill Was Defanged — and Universities Were Part of the Push Against It: What Businesses Must Know in 2025

Estimated reading time: 5 minutes

• New York’s landmark AI safety bill was defanged — and universities were part of the push against it, shifting the regulatory landscape for AI developers.
• The original RAISE Act aimed to enforce transparency and safety standards for large AI model development.
• Academic institutions and tech giants collaborated to dilute the bill, raising concerns about AI accountability and ethics.
• Business owners must stay ahead of AI compliance trends—even when regulations shift—to protect their operations.
• Learn how to navigate AI risk management amid evolving policy with help from platforms like AI Naanji.

Table of Contents

1. What Was the Original Purpose of the RAISE Act?
2. Why Was New York’s Landmark AI Safety Bill Defanged?
3. What Are the Implications of the RAISE Act Changes for Business Owners?
4. How to Implement Safe and Transparent AI Use in Your Business
5. How AI Naanji Helps Businesses Leverage AI Safely
6. FAQ: New York’s Landmark AI Safety Bill Was Defanged — and Universities Were Part of the Push Against It
7. Conclusion

What Was the Original Purpose of the RAISE Act?

The RAISE (Responsible AI Safety and Education) Act was introduced to create accountability and governance around the development of large language models and generative AI systems. Drafted in New York state and signed into law by Governor Kathy Hochul in late 2025, the bill originally aimed to require:

• AI safety protocols for developers working on large models.
• Transparency in how models are trained and what data they use.
• Public accountability mechanisms to address misuse or unintended outcomes.

For AI leaders such as OpenAI, Anthropic, Meta, Google, and DeepSeek, this meant formal documentation of model safety, disclosures about training datasets, and proactive risk mitigation plans.

For SMBs and other users leveraging these AI platforms, the RAISE Act promised a future with more transparent and safer AI integrations. Business owners could rely on better-defined compliance expectations and reduced exposure to model biases or instability.

But the final version of the bill tells a different story.

Why Was New York’s Landmark AI Safety Bill Defanged?

Despite its noble premise, the RAISE Act faced an unexpected backlash. According to a report from The Verge, a coordinated public messaging campaign involving universities and industry leaders played a critical role in weakening the bill.

Who Opposed the Bill and Why?

• Universities and Research Alliances: Academic institutions argued that the bill’s original requirements would hamper open AI research and limit competitive innovation.
• Tech Corporations: AI powerhouses voiced concerns about compliance costs and inflexible frameworks deterring market growth.

According to Meta’s Ad Library, an estimated $17,000–$25,000 was spent on ads opposing the bill—possibly reaching over 2 million people. The narrative focused on the potential stifling of innovation rather than protection from harms.

What Changed in the Final Version?

The revised, signed version of the bill removed or softened several safety and disclosure mandates. Instead of firm policy enforcement, the law now includes:

• Advisory councils over regulatory boards
• Voluntary guidance in place of mandatory compliance
• Delayed implementation timelines that give companies more leeway

What Are the Implications of the RAISE Act Changes for Business Owners?

With *New York’s landmark AI safety bill defanged — and universities part of the push against it*, business owners must now tread carefully in an AI space that lacks strong external guardrails.

Pros of the Weaker Regulation

• Faster adoption: Companies can implement AI without delays caused by compliance audits or certification processes.
• Lower overhead: Small businesses avoid extra hiring or consulting costs to meet regulatory guidance.
• Innovation flexibility: Developers and startups can experiment more freely.

Cons of the Weaker Regulation

• Risk of model misuse: Without standardized safety guardrails, businesses may inadvertently adopt models with unmonitored blind spots or bias.
• Legal ambiguity: In the absence of strong state-level guidance, the responsibility for safe AI use shifts to businesses themselves.
• Uncertain federal action: If stricter U.S. legislation arrives, businesses may need to pivot quickly to meet compliance.

In short, the power has shifted from government entities to the implementers themselves—your business. Whether automating customer service or using AI to personalize ads, your team is increasingly responsible for responsible AI use.

How to Implement Safe and Transparent AI Use in Your Business

Despite the weakening of state regulations, your business can still lead with confidence by proactively managing AI use. Here’s how:

1. Audit the AI tools you use
   • Identify what models and platforms power your tools (e.g., GPT-4, Claude, Gemini).
   • Understand if they provide access to model-level documentation or risk reports.
2. Establish internal AI use policies
   • Define acceptable use cases and red lines (e.g., no AI customer communication without human review).
   • Document how AI decisions affect users, particularly if they involve automation in hiring, creditworthiness, or personalization.
3. Train your staff on AI awareness
   • Offer training on AI-generated content detection, prompt safety, and ethical use of automation tools.
   • Help non-technical team members identify high-risk AI behaviors.
4. Use workflow automation with oversight
   • Implement AI into automated workflows through systems like n8n, but insert points of human validation for sensitive steps.
5. Monitor and test AI outcomes regularly
   • Use AI quality checks to detect performance drift, hallucinations, or inappropriate content generation.
   • Document anomalies and have rollback procedures ready.
6. Stay informed on evolving regulation
   • Join sector forums, read credible publications, and consider AI safety newsletters to keep pace with policy trends.

How AI Naanji Helps Businesses Leverage AI Safely

At AI Naanji, we work with growing businesses to implement AI systems that work with you—not against you. While regulations like the RAISE Act may shift, our frameworks for responsible automation remain consistent.

We specialize in:

• n8n workflow automation, helping you control how and when AI is applied across sales, marketing, support, and internal ops
• Tool integration, ensuring all your AI-powered platforms work in concert without exposing your system to blind spots or duplication
• AI advisory, providing ongoing consultation to align tech tools with your company’s legal and ethical risk thresholds

With our support, you don’t have to wait for government mandates—your business can lead in safe, efficient AI operation today.

FAQ: New York’s Landmark AI Safety Bill Was Defanged — and Universities Were Part of the Push Against It

What was the RAISE Act originally about?

The RAISE Act was intended to establish safety and transparency requirements for companies developing large-scale AI models. It would have required clear disclosures around model training and mandatory safety planning.

Why did universities oppose the AI safety bill?

Many research institutions feared that strict regulations could hinder AI innovation, limit grant potential, and slow academic research progress. They joined tech companies in opposing the original bill language.

How was the bill defanged?

The final version of the RAISE Act saw key regulatory mechanisms removed or softened. Instead of mandatory safety standards, it now offers voluntary guidelines and advisory boards.

Does this change affect federal regulation?

Not directly, but it signals potential challenges in enforcing stricter national AI safety rules. States may hesitate to pass robust AI laws if opposition campaigns prove influential.

How should businesses respond to these changes?

Businesses should take the lead in self-regulating their AI usage. That includes auditing AI tools, creating safe-use policies, training staff, and actively monitoring results—even in the absence of formal legal requirements.

Conclusion

As *New York’s landmark AI safety bill was defanged — and universities were part of the push against it*, the message is clear: business leaders can’t count solely on legislation to set AI boundaries. Whether or not regulation keeps up, your business can foster its own AI governance model—putting safety, transparency, and efficiency at the center.

Interested in building an AI workflow that balances innovation with accountability? Explore AI Naanji’s solutions for trusted automation, ethical AI deployment, and long-term scalability.