# New York AI Law Tests Banks' Vendor Plans

> Banks must prepare for AI vendor incidents under New York's safety law.
- Title: New York AI Law Tests Banks' Vendor Plans · Pymnts | Shortify
- Summary: Banks must prepare for AI vendor incidents under New York's safety law. New York's AI safety law requires banks to plan for vendor incidents by testing…
- Keywords: new york, ai safety law, bank vendor, raise act, digital innovation, financial services, business, finance, York, Law, Tests, Banks'
- Source: Pymnts — https://pymnts.com/news/artificial-intelligence/2026/new-yorks-ai-safety-law-puts-banks-vendor-plans-to-the-test
- Author: PYMNTS
- Published: 2026-09-23T15:32:01+00:00
- Read time: 1 min
- Topics: new york, ai safety law, bank vendor, raise act, digital innovation, financial services, business, finance
## New York AI Law Starts November
New York will require AI developers to register under its RAISE Act starting November 2026.
## Banks Face Vendor Incident Risks
Banks must plan for customer service disruptions if AI vendors report critical incidents.
## Gov. Hochul Sets Implementation
Gov. Kathy Hochul appointed Marc Gilman to lead New York's RAISE Act compliance.
## Critical Incident Reporting
Developers must report critical incidents to New York within 72 hours of occurrence.
## Banks Need Fallback Plans
Banks must test alternative processes before AI vendors fail to maintain customer services.
## What Happens Next
Banks will implement fallback systems to handle AI vendor incidents before they disrupt customers.
## Key takeaway

New York's AI safety law requires banks to plan for vendor incidents by testing fallback processes before critical AI failures occur.