[THEME MUSIC] WELCOME TO THIS WEEK'S EDITION OF NEW YORK NOW.

I'M SHANTEL DESTRA.

THE GOVERNOR AND LEGISLATIVE LEADERS STILL HAVE NOT REACHED AN AGREEMENT FOR THE FINAL STATE BUDGET.

THE NEGOTIATIONS HAVE BEEN STALLED BECAUSE OF POLICY DEBATES MOSTLY AROUND CHANGING THE STATE'S DISCOVERY LAWS.

THE CHANGES PROPOSED BY GOVERNOR KATHY HOCHUL RELATE TO HOW AND WHEN PROSECUTORS MUST TURN OVER EVIDENCE IN COURT CASES.

AT A PRESS CONFERENCE, THE GOVERNOR SAID THAT SHE WOULD NOT MOVE FORWARD WITH A BUDGET THAT DOES NOT MAKE NEW YORK SAFER AND MORE AFFORDABLE.

I MET WITH THE LEADERS AGAIN TODAY.

TALKED TO THE DA'S, BROUGHT THEM UP HERE.

THE CONSTANT COMMUNICATION, NOT JUST AT OUR LEVEL, BUT WITH OUR STAFFS, WE ARE TRYING TO GET TO A POSITION THAT WILL SOLVE THE PROBLEM WE HAVE, RESPOND TO WHAT THE DA'S NEED, UNDERSTAND THE RIGHTS OF DEFENDANTS, AND MAKE THIS A BETTER PROCESS FOR EVERYONE.

MEANWHILE, MEMBERS OF THE LEGISLATURE INCLUDING MEMBERS OF THE BLACK, PUERTO RICAN, HISPANIC AND ASIAN CAUCUS ARGUE THERE ARE THE OTHER WAYS TO ADDRESS THE ISSUE WITHOUT WEAKENING THE SYSTEM.

THIS WEEK, ASSEMBLY SPEAKER CARL HEASTIE ALSO INTRODUCED A BILL THAT WOULD ALLOW LAWMAKERS TO GET PAID WHEN THE BUDGET IS DELAYED BECAUSE OF POLICY MEASURES INTRODUCED BY THE EXECUTIVE CHAMBER.

IN RESPONSE TO THAT MOVE, A SPOKEPERSON FROM THE GOVERNOR'S OFFICE RESPONDED WITH A POINTED STATEMENT.

THE STATEMENT SAID IF, QUOTE, "THE HIGHEST PAID STATE LAWMAKERS IN AMERICA ARE WORRIED ABOUT THEIR PAY, THEY SHOULD COME TO THE TABLE AND PASS A BUDGET WITH THE GOVERNOR'S AGENDA."

THE LATEST BUDGET EXTENDER MOVED THE DEADLINE TO NEXT WEEK.

LAWMAKERS WERE SCHEDULED TO HAVE A TWO WEEK RECESS AT THE END OF APRIL BUT THE LACK OF A FINAL STATE BUDGET PUTS THAT PLAN IN LIMBO.

AND AMID ALL OF THE LATE BUDGET DRAMA, GOOD GOVERNMENT GROUPS HAVE LONG CALLED FOR MORE TRANSPARENCY.

THE GROUPS ARE CALLING ON THE LEADERS TO SHARE THE FINANCIAL PLAN TABLES FOR THE STATE BUDGET WHEN BILLS ARE BEING VOTED ON.

WE SAT DOWN WITH PATRICK ORECKI OF THE CITIZENS BUDGET COMMISSION FOR MORE ON THAT.

HERE'S THAT INTERVIEW.

THANK YOU SO MUCH FOR JOINING ME ON THE SHOW AGAIN, PATRICK.

THANKS FOR HAVING ME.

NOW, YOU KNOW, OF COURSE, NATURALLY, I WANTED TO START WITH TRANSPARENCY.

IT'S MY UNDERSTANDING THAT THE COMMISSION, ALONG WITH OTHER GOOD GOVERNMENT GROUPS ACROSS THE STATE, HAVE LONG PUSHED FOR TRANSPARENCY IN THE STATE BUDGET PROCESS.

SO I WANTED TO GET AN UNDERSTANDING FROM YOU WHAT LEVEL OF TRANSPARENCY IS NEEDED AND, YOU KNOW, WHAT WILL IT TAKE FOR THAT TO BE ACHIEVED.

YEAH.

WELL, OUR RECOMMENDATIONS REALLY STEM FROM THE OVERARCHING BELIEF THAT NEW YORKERS DESERVE TO KNOW WHAT'S IN THE BUDGET WHEN IT'S VOTED ON AND BEING PASSED.

AND FRANKLY RIGHT NOW THE NEW YORK STATE BUDGET PROCESS LEAVES A LOT UNTOLD WHEN THE BUDGET BILLS ACTUALLY ARE ENACTED.

AND ONE OF OUR BIG RECOMMENDATIONS THAT WE'VE HAD FOR MANY YEARS AND OF COURSE WE'RE WE'RE URGING SOME PROGRESS THIS YEAR IS TO JUST PUBLISH BASIC FINANCIAL PLAN TABLES WHEN THE BUDGET BILLS ARE VOTED ON.

YOU KNOW, WHEN YOU THINK ABOUT WHAT A BUDGET OUGHT TO LOOK LIKE, IT'S A TABLE OF NUMBERS THAT SHOWS WHERE YOUR MONEY'S COMING FROM AND WHERE IT'S GOING.

THE STATE BUDGET TAKES THE FORM OF THOUSANDS OF PAGES OF LEGALESE, SO THOSE BASIC TABLES WHEN THE BILLS ARE VOTED ON AREN'T AVAILABLE TO NEW YORKERS, BUT THEY SHOULD BE.

RIGHT, AND THIS IS AN ACT THAT THE COMMISSION HAS PRESENTED TO THE GOVERNOR AND THE STATE LEGISLATURE FOR SOME TIME.

SO WHAT DO YOU THINK THE HOLDUP IS THERE?

IS IT TRULY A BIG LIFT IN ORDER TO RELEASE THESE FINANCIAL TIMETABLES?

I THINK WITH ANYTHING, THERE'S A TON OF MOMENTUM FOR JUST DOING WHAT'S ALWAYS BEEN DONE.

SO IT'S ALWAYS HARD TO UNSTICK SOMETHING AND MAKE PROGRESS ANEW.

SO ONE OF THE BIG PIECES OF FEEDBACK THAT WE OFTEN GET FROM THE STATE IS THAT THEY'RE INCREDIBLY BUSY AT THIS TIME, WHICH OBVIOUSLY THEY ARE.

THESE STAFF MEMBERS ARE WORKING DAY AND NIGHT TO NEGOTIATE THAT BUDGET.

LAWMAKERS ARE WORKING WELL INTO THE NIGHT TO VOTE ON THEM.

BUT OUR RESPONSE TO THAT IS EITHER LAWMAKERS ARE VOTING WITHOUT THESE TYPES OF TABLES, THESE BASIC SUMMARIES OF WHAT THE BUDGET LOOKS LIKE, OR THEY DO HAVE THAT AND IT'S NOT RELEASED TO THE PUBLIC.

SO WHAT WE'RE ASKING FOR IS REALLY THREE TABLES THAT JUST SHOW WHAT THE BUDGET DOES, WHAT THE IMPACTS ARE OVER THE NEXT COUPLE OF YEARS AS WELL.

AND FROM YOUR PURVIEW, DO NEW YORKERS UNDERSTAND THE IMPLICATIONS OF NOT HAVING THESE FINANCIAL TIMETABLES RELEASED?

THEY PROBABLY, YOU KNOW, THE WAY THEY WOULD SEE IT IS PROBABLY BY WATCHING YOUR SHOW AND OTHER PROGRAMS OR READING IT IN THE NEWS WHERE THE DETAILS AREN'T JUST REALLY AVAILABLE.

AND THEY MIGHT NOT, YOU KNOW, IF THEY READ A STORY, SAY, "WELL, IS THE BUDGET BALANCED?

WHAT DOES IT LOOK LIKE GOING INTO FUTURE YEARS, I CARE ABOUT THE FUTURE AS WELL."

AND THOSE DETAILS JUST AREN'T AVAILABLE.

SO IT'S HARD FOR US TO TALK ABOUT WHEN THE BUDGET COMES OUT WHAT WE DON'T KNOW, WHICH IS THOSE TYPES OF IMPACTS, WHICH WE SHOULD KNOW.

AND OF COURSE, AT THE TIME THAT THE EXECUTIVE CHAMBER AND LEGISLATIVE LEADERS ARE NEGOTIATING THE STATE BUDGET, THERE IS THE BACKDROP OF POTENTIAL FEDERAL CUTS COMING DOWN FROM WASHINGTON.

I KNOW THE GOVERNOR AND LEGISLATIVE LEADERS HAVE INDICATED THE POSSIBILITY OF CALLING A SPECIAL SESSION SOMETIME IN THE SUMMER OR LATER IN THE YEAR TO ADDRESS THESE FEDERAL CUTS.

YOU KNOW, SO HOW SHOULD THEY BE LOOKING TO ADDRESS IT AND CONSIDER IT DURING THIS BUDGET SEASON?

YEAH, IT'S A REALLY STICKY POSITION TO BE IN, FRANKLY, BECAUSE WE ARE QUITE CERTAIN THAT SOME SIGNIFICANT CUTS WILL COME FROM WASHINGTON AT SOME POINT OVER THE NEXT SEVERAL MONTHS.

WE DON'T KNOW WHERE THEY WILL BE.

WE DON'T KNOW HOW BIG THEY WILL BE.

BUT THAT DOESN'T MEAN THAT THE STATE CAN'T DO SOME PREPARATION RIGHT NOW, ESPECIALLY BECAUSE WE'RE IN THE MIDDLE OF BUDGET MAKING AT THIS TIME.

SO OUR RECOMMENDATION TO THE STATE HAS BEEN TO AT LEAST SET ASIDE ABOUT TWO BILLION DOLLARS FROM CURRENT CASH, JUST TO SAY IF SOMETHING COMES UP IN THE MIDDLE OF THE YEAR FROM WASHINGTON AND TAKES IMMEDIATE EFFECT, YOU HAVE A BIT OF A CUSHION TO DEAL WITH THE IMMEDIATE YOU KNOW, RESPONSE TO ANY FEDERAL CUT.

THEN WHEN YOU RECONVENE TO DO THE BUDGET NEXT YEAR OR WHENEVER YOU NEED TO HAVE THOSE LONGER TERM DISCUSSIONS, YOU ALSO SHOULD HAVE A PRIORITY LIST OF WHERE YOU'RE GOING TO BACKFILL LOST FEDERAL MONEY, WHERE YOU CAN FIND SOME SAVINGS, WHERE YOU CAN'T REPLACE FEDERAL DOLLARS AND REALLY HAVE A MULTI YEAR VIEW OF WHAT COULD COME FROM WASHINGTON, BECAUSE IT'S NOT GOING TO BE A ONE AND DONE THING.

WHATEVER CUTS DO COME FROM DC ARE GOING TO BE RECURRING AND INDEFINITE.

AND IT SOUNDS LIKE THE COMMISSION HAS, YOU KNOW, QUITE A FEW RECOMMENDATIONS FOR THE BUDGET PROCESS AND FOR DEALING WITH TRANSPARENCY, DEALING WITH THESE FEDERAL CUTS.

HOW WOULD YOU SAY YOUR COMMUNICATION IS WITH THE BUDGET OFFICE AND WITH THE EXECUTIVE CHAMBER?

HAVE THEY BEEN RECEPTIVE TO THESE RECOMMENDATIONS?

YEAH, AND NOT ONLY WITH THE EXECUTIVE, BUT WITH THE LEGISLATURE TOO.

SO, OF COURSE, OUR RECOMMENDATION FOR THIS COMING ENACTED BUDGET, WHENEVER THAT DOES COME, IS TO HAVE FINANCIAL PLAN TABLES WITH THOSE BILLS.

WE ALSO RECOMMEND THE SAME THING WHEN THE LEGISLATURE INTRODUCES THEIR OWN COUNTERPROPOSALS, AND WE HAVE SEEN SOME PROGRESS FROM BOTH THE ASSEMBLY AND THE SENATE TO THEIR CREDIT ON PUBLISHING THINGS.

OF COURSE WE HAVE FURTHER IMPROVEMENTS THAT WE'D LOVE TO SEE THEM MAKE, BUT THERE HAS BEEN PROGRESS TOWARD THAT.

SO WE HOPE THAT THIS TYPE OF SIMPLE URGING OF TRANSPARENCY AND ACCOUNTABILITY IN THE BUDGET PROCESS IS SOMETHING THAT WILL BE, YOU KNOW, EMBRACED GOING FORWARD TOO.

AND AS SOMEONE WHO WORKS, YOU KNOW, IN THE BUDGET OFFICE AND YOU SPECIFICALLY FOCUS ON THINGS LIKE MEDICAID AND PUBLIC HEALTH PROGRAMS, HOW SHOULD THE STATE BE LOOKING TO PREPARE FOR POTENTIAL FEDERAL CUTS AS IT RELATES TO MEDICAID WHEN WE KNOW IT TAKES UP SO MUCH OF THE STATE BUDGET?

YEAH, IT'S REALLY AN EXERCISE, I THINK, IN PRIORITIZING EVERYTHING IN THE BUDGET BECAUSE IT'S ALL PART OF THE SAME PIE.

YOU KNOW, WHEN WE LOOK AT WHERE SAVINGS MIGHT BE POSSIBLE OR WHERE THE BIG NEW SPENDING IS, IT'S OFTEN IN BIG BUCKETS LIKE MEDICAID AND SCHOOL AID, WHICH ALONE ARE MORE THAN HALF OF THE STATE'S SPENDING PLAN.

SO YOU'RE ALWAYS GOING TO LOOK AT THOSE THINGS.

BUT I THINK ESPECIALLY WITH THE FEDERAL IMPLICATIONS IN MIND, IT'S ALWAYS GOOD TO TAKE STOCK OF WHAT THE STATE'S PRIORITIES ARE, WHERE STATE DOLLARS HAVE THE MOST IMPACT AND MAKE SURE THAT THOSE ARE THE THINGS YOU'RE PROTECTING WHENEVER THINGS COME FROM WASHINGTON.

WHEN I THINK OF THE BUDGET THIS YEAR, A BIG THING FOR ME IS TRULY AFFORDABILITY.

I KNOW THAT'S BEEN A FOCUS FOR BOTH THE GOVERNOR AND LEGISLATURE FOR SOME TIME THIS YEAR.

DOES THE COMMISSION HAVE ANY POSITION ON THE RECOMMENDATIONS THAT EITHER THE GOVERNOR OR LEGISLATURE HAVE PUT FORTH IN TERMS OF MAKING NEW YORK TRULY AFFORDABLE?

YEAH, BOTTOM LINE, THE EMPHASIS ON AFFORDABILITY IS A GREAT THING TO SEE.

I THINK IT'S WHAT VOTERS ARE DEMANDING AND IT'S GOOD TO SEE ELECTED LEADERS REALLY TAKE THAT ON AS A PRIORITY.

YOU KNOW, WHEN WE LOOK AT THE BUDGET PROPOSALS, THERE ARE KIND OF THREE THINGS THAT JUMP OUT ON THE AFFORDABILITY FRONT.

IT'S THE INFLATION REFUND CHECKS THAT THE GOVERNOR PROPOSED.

IT IS THE MIDDLE CLASS TAX CUT AND THE CHILD TAX CREDIT ENHANCEMENT.

SO THOSE THREE THINGS ARE ALL SORT OF ATTEMPTING TO MOVE IN THAT DIRECTION, AND I THINK TO A DEGREE THAT THE CHILD TAX CREDIT AND THE MIDDLE CLASS TAX CUT GET AT SOME OF THOSE ISSUES ON THE FRINGES AT LEAST, OUR POSITION IS THAT THE INFLATION REFUND CHECKS, WHICH IS $3 BILLION TO BE SENT OUT TO NEW YORKERS IN INCREMENTS OF EITHER $300 OR $500, ARE NOT THE BEST WAY TO USE $3 BILLION.

THAT'S A HUGE AMOUNT OF MONEY.

SOME OF THE PEOPLE THAT RECEIVE THOSE CHECKS WOULD ABSOLUTELY BENEFIT FROM THEM.

MANY WOULD NOT.

SO OUR RECOMMENDATION THERE HAS BEEN TO STEP BACK FROM THAT PROPOSAL AND INSTEAD THINK OF WHERE $3 BILLION IS GOING TO HAVE THE ABSOLUTE BIGGEST IMPACT, NOT THE BROADEST IMPACT, BUT THE GREATEST IMPACT.

AND WE ARE BEYOND THE APRIL 1ST DEADLINE FOR THE STATE BUDGET.

THE GOVERNOR HAS INDICATED THAT SHE'S GOING TO WAIT AS LONG AS POSSIBLE TO MAKE SURE THAT SOME OF HER PRIORITIES MAKE IT INTO THE BUDGET.

SHE'S WILLING TO TAKE AS LONG AS IT TAKES.

AND THIS IS THE FOURTH CONSECUTIVE STATE BUDGET THAT HAS BEEN LATE.

SO I WANTED TO GET YOUR PERSPECTIVE ON SOME OF THE IMPLICATIONS THAT COME WITH A STATE BUDGET BEING LATE.

DO YOU THINK THAT IT EVEN MATTERS TO NEW YORKERS AT THIS POINT IN TIME, THAT THE BUDGET IS LATE?

YEAH, I THINK WHEN WE'RE IN THIS TERRITORY WHERE IT'S A COUPLE DAYS OR A COUPLE WEEKS LATE, THAT DOESN'T HAVE MASSIVE IMPLICATIONS RIGHT AWAY.

YOU WOULD RATHER SEE A GOOD, SLIGHTLY LATE BUDGET THAN A HURRIED, BAD BUDGET THAT'S ON TIME.

WHEN YOU START TO SEE REAL WORLD IMPLICATIONS OF A LATE BUDGET IS WHEN SCHOOLS ARE TRYING TO CRAFT THEIR OWN BUDGETS FOR THE COMING YEAR AND SENDING THEIR BUDGETS TO VOTE TO THEIR SCHOOL DISTRICTS.

AND ALSO, YOU KNOW, THE CITY OF NEW YORK WHERE ABOUT HALF OF THE STATE'S POPULATION IS AND MANY MORE NEW YORKERS WORK, THEIR FISCAL YEAR OPERATES FROM JULY TO JUNE.

SO THEY RELY A LOT ON WHAT THE STATE DOES AS WELL.

SO AS YOU START TO GET LATER AND INTO THE LATE SPRING OR EVEN EARLY SUMMER, YOU START TO HAVE BIG IMPLICATIONS FOR LOCAL GOVERNMENTS TOO.

AND LOOKING AHEAD AT BUDGETS TO COME, WHAT ARE SOME OF THE BIGGEST POLICY ITEMS OR THINGS THAT THE GOVERNOR AND LEGISLATURE SHOULD KEEP IN MIND WHEN THEY'RE PREPARING FOR BUDGETS?

YEAH, I THINK TRANSPARENCY AND ACCOUNTABILITY IS OF COURSE SOMETHING THAT NOT ONLY CBC BUT MANY OTHER GOVERNMENT WATCHDOGS ARE GOING TO PUSH.

SO YOU KNOW MAKING THE BUDGET PROCESS BETTER BY ANY MEANS IS IMPORTANT INCLUDING THE FINANCIAL PLAN TABLES LIKE WE TALKED ABOUT.

I THINK HAVING A LONG RUN VIEW IS ALWAYS IMPORTANT TOO, YOU KNOW.

THERE'S AN IMPETUS, ESPECIALLY WHEN PEOPLE ARE UP FOR REELECTION EVERY TWO YEARS, TO DELIVER SOMETHING NEW, TO BE ABLE TO HAND OUT CHECKS EVERY YEAR OR TWO.

BUT HAVING A LONG RUN VIEW AND MAKING SURE THAT NEW YORK IS AFFORDABLE AND ECONOMICALLY COMPETITIVE IS ALWAYS IMPORTANT IN THE BUDGET MAKING PROCESS AS WELL.

WELL, UNFORTUNATELY, THAT'S ALL THE TIME WE HAVE FOR TODAY, BUT WE THANK YOU SO MUCH FOR TAKING THE TIME TO SPEAK WITH US.

> THANKS FOR HAVING ME.

AND WE WERE SPEAKING WITH PATRICK ORECKI, DIRECTOR OF STATE STUDIES WITH THE CITIZENS BUDGET COMMISSION.

NOW TURNING TO ANOTHER IMPORTANT TOPIC.

IN THIS NEXT SEGMENT, WE SAT DOWN WITH STATE SENATOR KRISTEN GONZALEZ TO UNPACK THE PRIORITIES AROUND ARTIFICIAL INTELLIGENCE AT THE STATE CAPITOL.

AFTER PASSING LEGISLATION TO LIMIT THE RELIANCE ON AI BY STATE AGENCIES, THE SENATOR IS HOPING TO BUILD ON THAT WORK BEFORE THE END OF SESSION.

HERE'S THAT CONVERSATION.

THANK YOU SO MUCH FOR JOINING US TODAY, SENATOR.

HAPPY TO BE HERE.

THANK YOU FOR HAVING ME.

LAST YEAR, YOU SPONSORED LEGISLATION THAT WAS SIGNED AND PASSED INTO LAW KNOWN AS THE LOADING ACT.

NOW THIS LAW WOULD ESSENTIALLY REGULATE ARTIFICIAL INTELLIGENCE SO THAT STATE AGENCIES WOULDN'T BE RELYING ON IT TO MAKE DECISIONS.

SO CAN YOU TELL US ABOUT THE IMPETUS OF THIS LEGISLATION AND HOW IT WORKS LOGISTICALLY?

THAT'S A GREAT QUESTION.

SO I CHAIRED THE SENATE INTERNET TECHNOLOGY COMMITTEE AND I'M ALSO A FORMER TECH WORKER.

SO I'VE SEEN FIRSTHAND HOW OUR WORLD IS GETTING INCREASINGLY DIGITAL AND TAKING OVER THE COMMITTEE WITH THE NATIONAL CONVERSATION ON ARTIFICIAL INTELLIGENCE, IT WAS A NATURAL FIT TO BE ABLE TO START REGULATING IT AT THE STATE LEVEL.

THE FIRST THING WE DID WAS WE PASSED A BILL CALLED THE NEW YORK FAIR ACT, WHICH REGULATED DEEP FAKES IN ELECTIONS.

AND THAT WAS TO PROTECT, OF COURSE, OUR ELECTIONS, BUT REALLY OUR DEMOCRACY.

AND NATURALLY, IF WE'RE PROTECTING OUR DEMOCRACY, WE ALSO GOTTA MOVE AND PROTECT THE PUBLIC SECTOR.

SO AS THESE NEW TOOLS ARE BEING ADOPTED AND AS WE HAVE AUTOMATED DECISION MAKING SYSTEMS, AND THE FINAL VERSION OF THE BILL THAT WAS SIGNED INTO LAW AT THE END OF LAST YEAR IS REALLY FOCUSING ON EMPLOYMENT DECISIONS.

SO WHEN OUR STATE AGENCIES ARE USING THESE AUTOMATED TOOLS TO MAKE DECISIONS ABOUT EMPLOYMENT, IT ALSO FOCUSES ON PROTECTING GOVERNMENT WORKERS.

AND THAT WAS SOMETHING WE WORKED ON WITH THE AFL CIO AND THE PUBLIC EMPLOYEES FEDERATION BECAUSE, AS WE'RE SEEING TODAY, PROTECTING OUR GOVERNMENT WORKERS IS CRITICAL TO PROTECTING OUR PUBLIC SECTOR, BUT AGAIN, PROTECTING OUR DEMOCRACY.

SO WHAT AGENCIES WOULD BE CHARGED WITH ENSURING THAT STATE AGENCIES ARE COMPLYING WITH THE LAW AND WHAT GUARDRAILS WILL BE PUT IN PLACE TO MONITOR THESE AGENCIES?

THAT'S ANOTHER GREAT QUESTION.

SO WE DO HAVE A STATE AGENCY, I.T.S., THAT'S FOCUSED ON THE STATE'S TECHNICAL SYSTEMS AND THEY DO A VARIETY OF DIFFERENT THINGS.

THEY ARE FEDERATED MODELS THAT ARE, TEAMS EMBEDDED ACROSS OTHER AGENCIES.

THEY ALSO, WE ALSO HAVE A CHIEF CYBERSECURITY OFFICER.

SO THEY WORK IN TANDEM TO MAKE SURE THAT WE'RE PROTECTING OUR STATE'S CRITICAL INFRASTRUCTURE.

AND THAT AGENCY, PRIOR TO US PASSING THIS BILL, ACTUALLY PUT OUT A GUIDANCE ON GOVERNMENT USE OF AI.

AND SO A LOT OF OUR BILL WAS IN LINE WITH THE AI ACCEPTABLE USE POLICY BECAUSE IT MAKES SENSE THAT THE STATE'S AGENCY ON TECHNOLOGY WOULD KNOW WHAT TOOLS ARE BEING ADOPTED, HOW THEY'RE BEING USED, AND HAVE A CLEAR AUDIT AND INVENTORY OF THEM.

SO OUR BILL HAS THAT INVENTORY AND I'M HOPING TO GET THE RESULTS NEXT YEAR AND REALLY SEE YOU KNOW HOW WIDESPREAD THESE TOOLS ARE.

CAN YOU TELL US ABOUT SOME OF YOUR OTHER ARTIFICIAL INTELLIGENCE PRIORITIES THIS YEAR?

SO WE HAVE A LOT OF AI PRIORITIES.

I TALKED ABOUT REGULATING ELECTIONS AND ENSURING THAT WE'RE PROTECTING OUR DEMOCRACY.

I TALKED ABOUT REGULATING THE PUBLIC SECTOR, PROTECTING OUR PUBLIC SECTOR.

NATURALLY, WE'RE MOVING TO THE PRIVATE SECTOR.

WE HAVE THE NEW YORK AI ACT, WHICH IS AN OMNIBUS BILL SIMILAR TO CONNECTICUT AND COLORADO'S LEGISLATION ON THIS, WHICH HELPS PUT IN PLACE RISK ASSESSMENTS AND AUDITS TO MAKE SURE THAT THESE TOOLS ARE BEING STEWARDED WELL AND THAT THEY'RE NOT HARMING ANY NEW YORKERS.

AND ON THAT SAME NOTE OUR CHATBOT LIABILITY BILL AIMS TO PROTECT NEW YORKERS FROM SOME OF THE HARMS THAT WE'VE ALREADY SEEN FROM THESE SYSTEMS.

SO JUST FOR FOLKS TO KNOW A CHATBOT IS ESSENTIALLY A LARGE LANGUAGE MODEL WHICH IS WHAT WE CALL GENERATIVE AI AND THESE LARGE LANGUAGE MODELS ARE A NEWER TYPE OF ARTIFICIAL INTELLIGENCE.

WE USE AI AND SOCIAL MEDIA, WE'VE HAD IT AROUND FOR YEARS AND YEARS, BUT GENERATIVE AI IS A LITTLE BIT DIFFERENT BECAUSE HOW IT WORKS IS MORE SIMILAR TO HOW, YOU KNOW, THE BRAIN WORKS, BUT IT ALSO MEANS IT'S A BLACK BOX.

SO WHEN A CHATBOT IS BEING PROMPTED, OR YOU'RE TALKING TO IT, FOR EXAMPLE, AND IT'S GIVING YOU AN OUTPUT, THERE IS NO REAL WAY TO EXPLAIN WHY IT'S GIVING YOU THAT OUTPUT OR RESPONSE THAT IT'S GIVING YOU.

WHEREAS, IN OTHER AUTOMATED SYSTEMS, YOU CAN LOOK AT THE CODE, SEE WHAT'S GOING WRONG AND FIX IT.

SO IF WE'RE GONNA HAVE THESE SYSTEMS THAT ARE BLACK BOXES, WE NEED TO MAKE SURE THAT IF THE OUTPUTS ARE HARMFUL AND WE'VE SEEN MENTAL HEALTH BE AN ISSUE, WE ACTUALLY HAD SOMEONE LAST YEAR, A YOUNG MAN KILL HIMSELF AS A RESULT OF INTERACTIONS WITH A CHATBOT, WE NEED TO MAKE SURE THAT THESE COMPANIES UNDERSTAND THE SERIOUSNESS AND RESPONSIBILITY THEY HAVE WHEN STEWARDING THESE TOOLS, AND WE NEED TO MAKE SURE THAT THERE IS SOME LIABILITY.

SO OUR CHATBOT LIABILITY BILL DOES THIS, AND IT ALSO PROVIDES, YOU KNOW, THE ATTORNEY GENERAL'S OFFICE WITH TOOLS.

IT HAS A PRIVATE RIGHT OF ACTION, SO IF SOMEONE'S BEEN HARMED, THEY HAVE A WAY TO DEFEND THEMSELVES, AND WE'RE HOPING TO GET THIS PASSED THIS YEAR.

AND BECAUSE ARTIFICIAL INTELLIGENCE IS PRETTY NEW, YOU KNOW, SOME OF THE RISKS ARE UNKNOWN.

SO I WANTED TO GET YOUR UNDERSTANDING OF HOW YOU APPROACH REGULATING SUCH A NEW INDUSTRY WITHOUT IMPEDING ON SOME OF ITS BENEFITS.

WE WANT TO SEE INNOVATION, WE WANT TO SEE TECHNOLOGY CONTINUE TO DEVELOP AND GROW.

SO WE DON'T REGULATE THE TECHNOLOGY, WE REGULATE THE USE CASES.

AND THE USE CASES, AGAIN, ARE HOW THEY'RE BEING APPLIED IN EVERYDAY LIFE.

AND BY DOING THAT, WE CAN MAKE SURE THAT OUR LEGISLATION IS FUTURE PROOF.

WE'RE FOCUSING ON THE ACTUAL APPLICATIONS WHILE GIVING THE SPACE FOR DEVELOPMENT.

WHEN WE TALK ABOUT CHATBOT LIABILITY OR THE NEW YORK AI ACT, WHAT WE'RE ALSO LOOKING AT THE HIGHEST RISK USE CASES.

SO ALL OF THE RISKS ARE, YOU KNOW, UNKNOWN AS NEW USE CASES COME ONLINE, WE DO HAVE SOME SEMBLANCE OF WHAT THE HIGHEST RISK MIGHT BE.

AND FOR US, THAT LOOKS LIKE ANY TIME ONE OF THESE SYSTEMS IS MAKING A DECISION ABOUT OUR LIVES, THAT CAN BE REALLY CONSEQUENTIAL.

AND CONSEQUENTIAL LOOKS LIKE A VIOLATION OF OUR CIVIL LIBERTIES, OR SOMETHING THAT DECIDES OUR ABILITY TO GET HEALTH INSURANCE, OUR ABILITY TO GET HOUSING, OUR ABILITY TO ACCESS KEY BENEFITS THROUGH ANY VARIETY OF PROVIDERS.

SO WE WANT TO MAKE SURE THAT WE'RE LOOKING AT THE HIGHEST RISK USE CASES AND WE'RE CONTINUING TO ENGAGE EVERYONE IN THIS CONVERSATION BECAUSE WE'VE ALREADY SEEN WHAT HAPPENS WHEN THESE TOOLS ARE LEFT ONTO THEIR OWN DEVICES.

YOU KNOW, HEALTHCARE, FOR EXAMPLE, HAD A TOOL THAT HAD 90% OF THOSE DECISIONS BE OVERTURNED BECAUSE THEY WERE INCORRECT.

AND THAT REALLY HURT AVERAGE PEOPLE.

AND WHEN IT COMES TO ARTIFICIAL INTELLIGENCE, THERE SEEMS TO BE A LOT OF CONVERSATION AROUND, YOU KNOW, IT POTENTIALLY IMPEDING ON WORKERS BEING ABLE TO WORK AND ARTIFICIAL INTELLIGENCE TAKING JOBS AWAY FROM NEW YORKERS.

SO WHAT WOULD YOU SAY TO NEW YORKERS THAT ARE CURRENTLY STRUGGLING WITH THAT FEAR?

WE HEAR THAT A LOT.

I THINK AS NEW YORKERS ARE SEEING AI IN THE NEWS EVERY DAY AND THEY'RE HEARING ABOUT THE STORIES, WHETHER IT'S UNITED HEALTHCARE OR OTHERS, YOU KNOW, SOME OF THE NEGATIVE USE CASES OR APPLICATIONS, THEY'RE WONDERING WHAT DOES IT MEAN FOR THEM AND, WHEN IT COMES TO THEIR JOB, WHAT DOES IT MEAN FOR THE WORKFORCE?

WE'RE ADDRESSING THAT FIRST PART WITH OUR LEGISLATION.

WHEN IT COMES TO WORKFORCE, WE HAVE TO GET A LITTLE BIT MORE CREATIVE BECAUSE A SINGLE BILL OR REGULATORY FRAMEWORK ISN'T GOING TO FIX THAT.

AND WHILE I THINK IT'S TRUE THAT EVERY SECTOR IS GOING TO BE TOUCHED BY ARTIFICIAL INTELLIGENCE, WHAT DOESN'T HAVE TO BE TRUE IS THAT WE HAVE MASS LAYOFFS AND THAT SUDDENLY IT'S DEVASTATING NOT ONLY OUR WORKFORCE OR OUR TAX SYSTEM, RIGHT?

WHAT WE CAN DO IS WORK TOGETHER TO TRAIN PEOPLE AT EVERY LEVEL, WHETHER YOU ARE IN SCHOOL, HOW TO USE THESE AS A TOOL TO BE MORE PRODUCTIVE, HOW TO USE AI IN YOUR ROLE FOR THE BEST OF ITS ABILITIES AND THE BEST OF YOUR CAPACITY, PEOPLE WHO ARE MID CAREER WHO WANT TO TRANSITION AND BECOME MORE DIGITAL IN THEIR SKILL SET, AND WE CERTAINLY ARE WORKING TO SEE WHAT NEW JOBS CAN BE CREATED.

BECAUSE IF WE AUTOMATE SOME, THAT CAN HAPPEN WITH NEW TECHNOLOGY, BUT THERE MAY BE NEW OPPORTUNITIES DOWN THE LINE.

SO WE'RE LOOKING TO UPSKILL, WE'RE LOOKING TO CREATE NEW WORKFORCE DEVELOPMENT PROGRAMS AND WE'RE CERTAINLY INVESTING AS A STATE IN THESE THROUGH, WE TALK ABOUT EMPIRE AI, BUT REALLY THROUGH OUR CUNY AND SUNY SCHOOLS.

AND WHAT ARE YOUR CURRENT CONVERSATIONS LIKE WITH LABOR ADVOCATES AND THE COMMITTEE CHAIRS OF THE LABOR COMMITTEES IN BOTH CHAMBERS ABOUT WAYS THAT THE STATES CAN PROTECT NEW YORKERS?

WE'RE CERTAINLY TALKING TO LABOR UNIONS.

WE WORKED WITH THE AFL CIO AND PUBLIC EMPLOYEES FEDERATION, AS I MENTIONED, ON THE LOADING ACT BILL.

WE'RE CONTINUING TO ENGAGE THEM AS WE ARE INTRODUCING AND WORKING ON THE NEW YORK AI ACT.

AND WE'RE ENGAGING A BROADER SET OF UNIONS RIGHT NOW.

HOW UNION MEMBERS, DEPENDING ON WHAT THE UNION MEMBERSHIP LOOKS LIKE WILL BE TOUCHED BY AI, CAN BE DIFFERENT.

AND WE'RE TALKING TO, WHETHER IT'S TEACHERS, NURSES, OTHERWISE, TALKING TO THOSE UNIONS TO SEE WHAT THEIR PRIORITIES ARE AND HOW THEY MIGHT WANT THEIR WORKERS TO BE UPSKILLED OR PROTECTED.

I THINK AT A BASELINE, WE NEED TO ENSURE THAT THIS TECHNOLOGY ISN'T IMPACTING ANY COLLECTIVE BARGAINING AGREEMENTS.

THAT'S WHY WE SAW THAT LABOR PROTECTION LANGUAGE IN THE LOADING ACT.

BUT MOVING FORWARD, IT'S NOT JUST ENGAGING UNIONS ON THIS, IT'S HOW DO YOU BRING UNIONS TO THE TABLE, PLUS THE PRIVATE SECTOR, PLUS OUR COLLEAGUES IN THE STATE LEGISLATURE WHO CHAIR THE RELEVANT COMMITTEES, SO THAT WE ACTUALLY HAVE A HOLISTIC CONVERSATION MEETING PEOPLE WHERE THEY'RE AT THAT CRAFTS A REAL PATH FORWARD WITH THIS TECHNOLOGY, BUT ALSO A PATH THAT IS REPRESENTATIVE OF THE NEW YORKERS WHO I KNOW I'M HERE TO SERVE AND MY COLLEAGUES ARE CERTAINLY HERE TO SERVE AS WELL.

> AND AS YOU MENTIONED, THE STATE HAS ALREADY FOCUSED ON ELECTIONS WHEN IT COMES TO ARTIFICIAL INTELLIGENCE.

BUT WHAT IS YOUR CURRENT READ ON THE WAY THAT ARTIFICIAL INTELLIGENCE MAY IMPACT DEMOCRACY?

SO I ALSO CHAIR THE ELECTIONS COMMITTEE IN ADDITION TO THE INTERNET AND TECHNOLOGY COMMITTEE.

AND AS I MENTIONED EARLIER, WE HAD ACTUALLY WORKED AT THE INTERSECTION OF BOTH LAST YEAR WHEN WE PASSED OUR NEW YORK FAIR ACT.

WE FOCUSED ON DEEP FAKES FIRST, BECAUSE DURING THE PRESIDENTIAL ELECTION, WE SAW MULTIPLE INSTANCES OF DEEP FAKES SPREADING MISINFORMATION.

AND I DON'T THINK THAT WE'RE DONE.

I THINK THAT MISINFORMATION IS ACTUALLY ONE OF THE BIGGEST THREATS TO OUR DEMOCRACY.

AND, YOU KNOW, I MENTIONED AI BEING USED IN SOCIAL MEDIA.

YES, THAT IS TRUE.

AND IT'S BROUGHT OUR DEMOCRACY TO THE BRINK UP UNTIL THIS POINT.

BUT GENERATIVE AI POSES A THREAT ON ANOTHER LEVEL THAT WE HAVEN'T SEEN.

GENERATIVE AI CREATES CONTENT WITH AN ACCURACY AND HUMAN LIKE TENDENCY THAT ACTUALLY SPREADS MISINFORMATION WITH A QUALITY WE HAVEN'T SEEN BEFORE, BUT THEN ON A SCALE WE HAVEN'T SEEN BEFORE.

THESE MODELS ARE TRAINING SO MUCH MORE DATA AND CAN ALSO BE LEVERAGED TO PUT OUT A LOT MORE INTO, UNFORTUNATELY, WHETHER IT'S CREATING NEW AI SITES THAT SPREAD MISINFORMATION, RESPONSES ON SOCIAL MEDIA, IN SO MANY NEW WAYS.

SO WE WANT TO CONTINUE REGULATING, WE WANT TO CONTINUE PROTECTING THE INTEGRITY OF OUR ELECTIONS.

AND FINALLY, WE WANT TO CONTINUE EDUCATING NEW YORKERS.

PEOPLE NEED TO KNOW HOW TO SPOT A DEEP FAKE, THEY NEED TO KNOW HOW TO SPOT A WEBSITE THAT IS COMPLETELY FABRICATED, YOU KNOW, NEWS SOURCES LIKE YOURS THAT ARE VALID VERSUS NEWS SOURCES THAT ARE SPREADING THIS INFORMATION.

AND SO WE SHOULD NOT, YOU KNOW, WE SHOULD NOT UNDERESTIMATE HOW CRITICAL THAT DIGITAL LITERACY PIECE WILL BE, WHETHER TO OUR ELECTIONS, BUT REALLY TO EVERYTHING ELSE THAT WE'RE DOING HERE IN THE LEGISLATURE.

AND HOW DOES NEW YORK STACK UP AGAINST OTHER STATES IN ITS APPROACH TO REGULATING ARTIFICIAL INTELLIGENCE?

WITH REGULATING AI, I THINK WE'VE LED IN SOME WAYS.

WE CERTAINLY, THROUGH THIS COMMITTEE, HAVE INTRODUCED NEW BILLS THAT GO FURTHER THAN WHAT OTHER STATES HAVE DONE.

THE NEW YORK AI ACT, I THINK, IS A GREAT EXAMPLE OF THAT BECAUSE IT TAKES WHAT WE'VE SEEN IN OTHER PLACES, THINGS LIKE WHISTLEBLOWER PROTECTIONS, BUT IT ADDS MORE.

INSTEAD OF JUST A RISK BASED APPROACH, WE HAVE A RIGHTS BASED APPROACH.

WE TALK A LOT ABOUT PROTECTING PEOPLE'S FUNDAMENTAL CIVIL LIBERTIES.

AND THAT'S A WAY THAT WE CAN LEAD HERE IN NEW YORK.

BUT THERE IS ALWAYS MORE WORK TO DO.

AND THAT'S WHY WE ARE EXCITED TO SEE THE GOVERNOR'S OFFICE TAKE THIS ISSUE ON.

AND WE'RE EXCITED TO SEE SO MANY OF OUR COLLEAGUES IN THE LEGISLATURE IN BOTH THE SENATE AND ASSEMBLY.

WE'RE EXCITED TO TALK ABOUT THIS ISSUE, INTRODUCE NEW BILLS.

AND WE'RE HOPING AT THE END OF THIS LEGISLATIVE SESSION TO HAVE AN AI PACKAGE THAT IS ANOTHER SIGNAL THAT NEW YORK IS GOING TO BE LEADING ON THIS INSTEAD OF FALLING BEHIND WHERE WE SOMETIMES HAVE IN THE PAST.

AND THAT WAS STATE SENATOR KRISTEN GONZALEZ, CHAIR OF THE SENATE INTERNET AND TECHNOLOGY COMMITTEE.

FOR MORE ON THOSE AI PRIORITIES, YOU CAN VISIT OUR WEBSITE THAT'S AT NYNOW.ORG.

WELL, THAT DOES IT FOR THIS EDITION OF NEW YORK NOW.

THANK YOU FOR TUNING AND SEE YOU NEXT WEEK.

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