AI Automation
Agency, New York.
New York is the global hub for financial services, legal, and healthcare — and one of the most complex regulatory environments in the world. AI automation projects here operate across federal (HIPAA, FINRA, ABA) and state-level (NYDFS, NY SHIELD Act) compliance frameworks simultaneously.
NYDFS supervises AI as a cybersecurity matter under Part 500, not as a separate AI regime.
New York's financial regulator has not written a standalone AI rulebook. It folds AI into 23 NYCRR Part 500, the cybersecurity regulation covered entities already run. In practice that means an AI deployment does not get its own governance track; it goes into the existing Part 500 risk assessment, and a risk assessment that does not address AI-related threats has to be revised.
The guidance has arrived as a sequence of industry letters rather than a single rule: an October 2024 memorandum on the risks posed by artificial intelligence, an October 2025 letter on managing third-party service providers including AI and fintech vendors, and a May 2026 letter on the heightened risks of frontier AI models. The final provisions of the 2023 amendment to Part 500 took effect on 1 November 2025.
One control deserves specific mention because it changes build decisions. NYDFS advises covered entities to use authentication factors that withstand AI-generated deepfakes, which means moving away from SMS, voice and video verification toward digital certificates and physical security keys. If an automation touches identity verification, that is a design constraint rather than a policy footnote.
Who you answer to here
- NYDFS
- 23 NYCRR Part 500; AI supervised through the cybersecurity regime
- FINRA and SEC
- Supervision and record-keeping obligations run in parallel
- NY SHIELD Act
- State data security requirements for private information
Sources
- 01Cybersecurity Resource Center, 23 NYCRR Part 500 and industry guidance, New York State Department of Financial Services
- 02FINRA Rule 3110, Supervision, Financial Industry Regulatory Authority
- 0317 CFR 240.17a-4, Records to be preserved, Electronic Code of Federal Regulations
Six industries.
One engineering team.
Healthcare
Clinical admin, patient flow, and compliance automation.
HIPAA Privacy and Security Rules, 21st Century Cures Act interoperability mandates, and ONC information-blocking rules govern all healthcare AI deployments.
- Appointment scheduling and patient reminders
- Clinical documentation and records processing
- Referral routing and prior authorisation
Fintech
KYC, AML, reconciliation, and regulatory reporting.
SEC Rule 17a-4, FINRA Rules 3110 and 3120, BSA/AML requirements, and SOX Section 302/404 for publicly listed companies govern all financial AI automation.
- KYC/AML onboarding and ongoing monitoring
- Transaction reconciliation and exception handling
- Regulatory reporting and audit trail generation
Legal
Document review, client intake, and billing automation.
ABA Model Rules 1.1 (competence) and 1.6 (confidentiality), FRCP e-discovery requirements, and state bar ethics opinions on AI use in legal practice.
- Contract review and clause extraction
- Client intake and matter management automation
- Billing, time capture, and accounts receivable
Manufacturing
Predictive maintenance, quality control, and supply chain.
OSHA 29 CFR regulations, FDA 21 CFR Part 11 for electronic records and signatures, ISO 9001, and EPA environmental reporting requirements.
- Predictive maintenance and asset health monitoring
- Quality control inspection and defect classification
- Supply chain and inventory optimisation
Education
Admissions, student support, and administrative automation.
FERPA (Family Educational Rights and Privacy Act), COPPA for under-13 users, Section 508 accessibility requirements, and applicable state education codes.
- Admissions processing and applicant scoring
- Student support routing and early intervention alerts
- Administrative reporting and compliance documentation
E-commerce
Inventory, pricing, fulfilment, and customer service automation.
CCPA/CPRA (California), FTC Act Section 5, PCI DSS for payment data, and COPPA for platforms with under-13 users.
- Inventory forecasting and replenishment automation
- Dynamic pricing and margin optimisation
- Customer service triage and returns processing
Brief, engineer, ship.
Brief
Tell us what you are trying to stop doing manually. One hour, no deck required.
Week 1Engineer
We map the process, confirm the compliance requirements, and build it to a fixed spec.
Weeks 2–8Ship
You go live with a compliant, auditable automation. We stay alongside for support and iteration.
Week 8+