New York state agencies are deploying artificial intelligence in sensitive areas ranging from prison surveillance to elder care—but without a clear framework for oversight, according to a new audit from State Comptroller Thomas P. DiNapoli.
The report paints a picture of fragmented, inconsistent, and often poorly understood AI use across state government. It found that agencies are largely left to interpret their responsibilities on their own, relying on a brief state policy that lacks clear guidance, enforcement mechanisms, or even an inventory of AI systems currently in use.
“This audit is a wake-up call,” DiNapoli said. “Stronger governance over the state’s growing use of AI is needed to safeguard against the well-known risks that come with it.”
The audit examined the Office for the Aging, the Department of Corrections and Community Supervision, the Department of Motor Vehicles, and the Department of Transportation. In each case, auditors found missing or unclear policies, lack of training, and confusion over whether existing tools even qualify as AI under state definitions.
For instance, the DMV excluded its facial recognition software from AI oversight despite its use of computer vision and data analysis—both core elements of AI. Meanwhile, NYSOFA deployed a voice-activated AI companion to combat social isolation among older adults but had no internal review process or contractual data protections in place.
Perhaps most concerning, the Department of Corrections uses AI to monitor inmate phone calls, yet lacks any formal plan to reduce bias or measure the system’s error rate. While the vendor claimed to mitigate bias, auditors could not verify the effectiveness of these claims.
The audit also highlighted that no agency had conducted periodic reviews to assess the accuracy or fairness of their AI systems, and none had trained staff on potential AI risks. Only the DMV had a policy requiring review, though not specific procedures to enforce it.
DiNapoli’s report recommends seven changes, including that the state’s Office of Information Technology Services strengthen its AI policy, provide training, and actively support agencies in responsible AI use. Agencies were urged to establish governance structures, conduct regular audits, and coordinate with ITS. DiNapoli also plans to introduce legislation requiring independent audits of AI systems to ensure transparency and accountability.
While ITS and several agencies said they would consider or adopt the recommendations, the DMV pushed back on some findings but still agreed to move forward on proposed changes.
The audit follows a 2023 review of New York City’s AI governance and is part of a broader push by DiNapoli to ensure emerging technologies do not outpace ethical oversight. Without swift reforms, he warns, the unchecked use of AI could lead to privacy violations, biased decisions, and weakened public trust.
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