How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
This act shall be known and may be cited as the "understanding artificial intelligenceArtificial intelligence"Artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.Gen. Bus. Law § 1511(1) act".
This section establishes the short title of the act as the Understanding Artificial Intelligence Act. It creates no compliance obligations.
(1) "Artificial intelligenceArtificial intelligence"Artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.Gen. Bus. Law § 1511(1)" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.
(2) "Covered modelCovered model"Covered model" means an artificial intelligence model trained using a quantity of computing power greater than 10^26 integer or floating-point operations, the cost of which exceeds one hundred million dollars when calculated using the average market prices of cloud compute at the start of training as reasonably assessed by the developer.Gen. Bus. Law § 1511(2)" means an artificial intelligenceArtificial intelligence"Artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.Gen. Bus. Law § 1511(1) model trained using a quantity of computing power greater than 10^26 integer or floating-point operations, the cost of which exceeds one hundred million dollars when calculated using the average market prices of cloud compute at the start of training as reasonably assessed by the developerDeveloper"Developer" means a person that performs the initial training of a covered model by training a model using a sufficient quantity of computing power and cost.Gen. Bus. Law § 1511(3).
(3) "DeveloperDeveloper"Developer" means a person that performs the initial training of a covered model by training a model using a sufficient quantity of computing power and cost.Gen. Bus. Law § 1511(3)" means a person that performs the initial training of a covered modelCovered model"Covered model" means an artificial intelligence model trained using a quantity of computing power greater than 10^26 integer or floating-point operations, the cost of which exceeds one hundred million dollars when calculated using the average market prices of cloud compute at the start of training as reasonably assessed by the developer.Gen. Bus. Law § 1511(2) by training a model using a sufficient quantity of computing power and cost.
(4) "Fine-tuningFine-tuning"Fine-tuning" means adjusting the model weights of a trained covered model by exposing it to additional data.Gen. Bus. Law § 1511(4)" means adjusting the model weights of a trained covered modelCovered model"Covered model" means an artificial intelligence model trained using a quantity of computing power greater than 10^26 integer or floating-point operations, the cost of which exceeds one hundred million dollars when calculated using the average market prices of cloud compute at the start of training as reasonably assessed by the developer.Gen. Bus. Law § 1511(2) by exposing it to additional data.
This section defines the four key terms used throughout the act. Covered model is defined by a dual threshold: training compute exceeding 10^26 integer or floating-point operations and training cost exceeding $100 million at average cloud compute market prices. This dual-threshold approach is narrower than compute-only definitions used in other frontier AI bills. Developer is limited to the person who performs the initial training — fine-tuners and downstream modifiers are explicitly not developers and are instead treated as potential intermediaries under the liability provision.
(1) 1 Except with respect to any causes of action for defamation, developersDeveloper"Developer" means a person that performs the initial training of a covered model by training a model using a sufficient quantity of computing power and cost.Gen. Bus. Law § 1511(3) of covered modelsCovered model"Covered model" means an artificial intelligence model trained using a quantity of computing power greater than 10^26 integer or floating-point operations, the cost of which exceeds one hundred million dollars when calculated using the average market prices of cloud compute at the start of training as reasonably assessed by the developer.Gen. Bus. Law § 1511(2) shall be strictly liable, regardless of the degree of care they exercised, for all injuries to a non-user of the covered modelCovered model"Covered model" means an artificial intelligence model trained using a quantity of computing power greater than 10^26 integer or floating-point operations, the cost of which exceeds one hundred million dollars when calculated using the average market prices of cloud compute at the start of training as reasonably assessed by the developer.Gen. Bus. Law § 1511(2) that satisfy the actual harm element of an ordinary negligence claim if: (a) those injuries are factually and proximately caused by a covered modelCovered model"Covered model" means an artificial intelligence model trained using a quantity of computing power greater than 10^26 integer or floating-point operations, the cost of which exceeds one hundred million dollars when calculated using the average market prices of cloud compute at the start of training as reasonably assessed by the developer.Gen. Bus. Law § 1511(2) that engages in conduct that, if undertaken by an adult human of sound mind, would satisfy the elements of negligence or any intentional tort or crime; and (b) that conduct was neither intended nor could have been reasonably anticipated by: (i) the user of the model; or (ii) any intermediary that fine-tuned, scaffolded, or otherwise modified the model.
(2)(a) 2 For the purposes of this section, for any torts for which the mental state of the alleged tortfeasor is relevant to elements of the tort, there shall be a rebuttable presumption that the artificial intelligenceArtificial intelligence"Artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.Gen. Bus. Law § 1511(1) system satisfies the relevant mental state if the finder of fact determines by a preponderance of the evidence that, if a natural person under similar circumstances to the artificial intelligenceArtificial intelligence"Artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.Gen. Bus. Law § 1511(1) system took actions similar to those taken by the artificial intelligenceArtificial intelligence"Artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.Gen. Bus. Law § 1511(1) system, that natural person would have acted with the relevant mental state.
(2)(b) 2 Unless the court determines that the presumption established in paragraph (a) of this subdivision is not applicable, if the party against whom the presumption is invoked presents evidence tending to rebut the presumption established in paragraph (a) of this subdivision, the court shall instruct the finder of fact to find that the presumed facts exist unless the finder of fact is persuaded that the presumed facts do not exist.
(2)(c) 2 For the purposes of this section, it shall not be a defense that artificial intelligenceArtificial intelligence"Artificial intelligence" means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.Gen. Bus. Law § 1511(1) systems are incapable of having mental states.
(3)(a) 3 It shall be an affirmative defense to strict liability if the developerDeveloper"Developer" means a person that performs the initial training of a covered model by training a model using a sufficient quantity of computing power and cost.Gen. Bus. Law § 1511(3) establishes that the covered modelCovered model"Covered model" means an artificial intelligence model trained using a quantity of computing power greater than 10^26 integer or floating-point operations, the cost of which exceeds one hundred million dollars when calculated using the average market prices of cloud compute at the start of training as reasonably assessed by the developer.Gen. Bus. Law § 1511(2) satisfied the standard of care applicable to humans who perform the same function that the covered modelCovered model"Covered model" means an artificial intelligence model trained using a quantity of computing power greater than 10^26 integer or floating-point operations, the cost of which exceeds one hundred million dollars when calculated using the average market prices of cloud compute at the start of training as reasonably assessed by the developer.Gen. Bus. Law § 1511(2) was engaged in performing when its conduct allegedly caused the plaintiff's injury.
(3)(b) 3 It shall be an affirmative defense to strict liability if the developerDeveloper"Developer" means a person that performs the initial training of a covered model by training a model using a sufficient quantity of computing power and cost.Gen. Bus. Law § 1511(3) establishes that the injuries to a non-user as described in this section were a result of a capabilities failure, in which a covered modelCovered model"Covered model" means an artificial intelligence model trained using a quantity of computing power greater than 10^26 integer or floating-point operations, the cost of which exceeds one hundred million dollars when calculated using the average market prices of cloud compute at the start of training as reasonably assessed by the developer.Gen. Bus. Law § 1511(2) falls short of performing the intended or reasonably anticipated performance of the user, but the conduct of the system would not satisfy the elements of negligence or any intentional tort or crime if engaged in by an adult human of sound mind.
This section establishes the bill's core liability framework. Subdivision 1 imposes strict liability on developers of covered models for injuries to non-users that satisfy the actual harm element of an ordinary negligence claim, subject to two conditions: the injury must be factually and proximately caused by model conduct that would constitute negligence, an intentional tort, or a crime if undertaken by a human adult; and the conduct must have been neither intended nor reasonably anticipated by the user or any intermediary who fine-tuned, scaffolded, or otherwise modified the model. Defamation claims are expressly carved out.
Subdivision 2 addresses the mental-state problem inherent in applying tort law to AI systems. It creates a rebuttable presumption that the AI satisfies a tort's mental-state element if a natural person in similar circumstances would have acted with that mental state, and expressly forecloses the defense that AI systems are incapable of having mental states. Subdivision 3 provides two affirmative defenses: the developer may show the model met the professional standard of care applicable to humans performing the same function, or that the injury resulted from a mere capabilities failure rather than conduct that would be tortious if performed by a human.
This act shall take effect immediately.
The act takes effect immediately upon enactment. This is notable given the strict-liability framework — developers would have no transition period to adjust safety practices or evaluate compliance exposure before the liability standard becomes operative.