New York Turns to AI to Cut Regulatory Red Tape

New York Gov. Kathy Hochul has launched a sweeping effort to reduce regulatory burdens across state government, pairing a broad review of existing rules with the use of artificial intelligence (AI) to identify opportunities for streamlining. The initiative, which the administration describes as the largest regulatory review in state history, is intended to eliminate outdated regulations, reduce compliance costs, and improve the delivery of government services while preserving core government functions.

Hochul signed an executive order directing state agencies to conduct what her administration is calling a “regulatory reset.” Agencies will review existing regulations, fees, fines, boards and commissions to determine whether requirements can be simplified or eliminated. The review will also consider dissolving state boards and commissions that no longer serve the public interest.

Unlike many recent efforts to shrink government, Hochul framed the initiative as an effort to make state government more effective rather than reduce its scope.

“New Yorkers rely on state government in ways big and small every day, but for too long, needless red tape has slowed down the core functions of government and made it harder for our state to deliver for its residents,” Hochul said in a press release. “While some in Washington have tried to gut the very functions of government, we are choosing a different path, one that will strengthen the vital work of government and reaffirm its role for good in our state.”

A notable feature of the initiative is the state’s use of AI to support regulatory reform. According to the governor’s office, New York worked with nonprofit organizations and academic researchers and used Stanford University’s RegLab AI system to analyze regulations and identify thousands of potential opportunities to streamline government rules. The AI-generated recommendations were supplemented by reviews conducted by state officials and outside experts.

Robert Gordon, executive vice president of Recoding America Fund, one of the organizations assisting with the AI-driven review, said governments often continue layering new requirements onto old ones without reassessing whether earlier regulations remain necessary, according to The Center Square.

“Too often, governments just pile new rules on top of old ones, costing time and money for citizens, businesses, and public employees,” Gordon said in a statement. “New York asks a simple, necessary question: What can we take away?”

The regulatory review expands on Hochul’s Expediting Processes and Regulations to Enable Streamlined Services (EXPRESS NY) initiative, which spans 22 state agencies. As part of the program, the governor announced an initial package of 50 regulatory actions that the administration estimates will save New Yorkers tens of millions of dollars in fees and compliance costs. More than 1.5 million residents are expected to benefit from the first wave of reforms.

The initial reforms are grouped into four categories: saving time, saving money, expanding access to government services and eliminating obsolete regulations. Measures include simplifying occupational license renewals for more than 800,000 licensed professionals, streamlining affordable housing reviews, reducing paperwork for Medicaid providers, modernizing victim compensation procedures and updating regulations governing settlements before the Division of Human Rights.

The administration also plans to reduce financial burdens by eliminating several licensing and application fees, removing a $25,000 bonding requirement for transporting certain manufactured homes and lowering equity requirements for nursing home construction projects.

Another element of the initiative focuses on removing obsolete regulations that remain on the books despite no longer serving any practical purpose. The administration identified 15 outdated labor regulations for repeal, including a decades-old requirement that restaurants obtain special permits allowing women to work after midnight, outdated specifications for truck and bus operators’ timesheets, and obsolete sanitation rules dating to the 1970s. The state also plans to rescind long-obsolete “Y2K bug” guidance still maintained by the Office of Information and Technology Services.

The reforms were informed not only by AI analysis but also by public participation. Earlier this year, the state solicited suggestions through the EXPRESS NY portal, receiving nearly 4,000 proposals from residents across all 62 counties. State officials said those recommendations are being reviewed and will help shape additional regulatory changes expected later this year.

For all PYMNTS AI and digital transformation coverage, subscribe to the daily AI and Digital Transformation Newsletters.