Kerrie Joyce 
New Jersey has proven itself to be something of a hub for the fast-expanding artificial intelligence industry. AI has started to appear in various aspects of daily life in the Garden State, with data centers popping up around the state to meet the demands of AI usage and concerns about media literacy in the age of deepfakes. To manage what this new digital reality has in store for New Jersey’s future, two laws regulating the technology have already been passed, and more are on the way. Read on to learn more about what laws are currently in place and new ones that are being discussed in the State Senate.
Existing Laws
New Jersey already has two laws regulating the use of artificial intelligence. . One prohibits the dissemination of AI-generated, deceptive images using a person’s likeness, also known as deepfakes, while the other encourages AI-industry-related development in the state. Prior to these laws being introduced, the New Jersey Attorney General’s office issued guidance outlining how existing anti-discrimination laws apply to the usage of artificial intelligence.
Guidance on Algorithmic Discrimination and the New Jersey Law Against Discrimination
Introduced: January 9th, 2025
New Jersey Attorney General Matthew J. Platkin and the Division on Civil Rights issued guidance earlier this year stating that existing legislation, the New Jersey Law Against Discrimination (LAD), also applies to the use of artificial intelligence-powered automated decision-making tools. The practice, known as algorithmic discrimination, concerns the use of AI by “employers, housing providers, places of public accommodation, and other entities covered by the Law Against Discrimination.”
Since most AI technologies can only work off of input data that they are given, and lack the greater context that humans possess, algorithms can unintentionally discriminate against legally protected groups. The guidance includes studies documenting instances of algorithmic discrimination as well as methods of training AI to account for historically excluded groups. The guidance further states that organizations like banks, employers, and similar bodies subject to the LAD are free to continue with the use of automated decision-making tools, but are legally responsible for preventing discriminatory outcomes that the tools may produce. The guidance concludes, “The use of automated decision-making tools will continue to expand in key aspects of New Jerseyans’ lives. As it does, the risk of algorithmic discrimination may also increase. The LAD prohibits algorithmic discrimination and protects New Jerseyans from discrimination, no matter the type of technology covered entities use.”
Bill S2544 | “Establishes criminal penalties for production or dissemination of deceptive audio or visual media, commonly known as “deepfakes.””
Introduced: February 8th, 2024
Signed into Law: April 2nd, 2025
Bill S2544, also known as Bill A3540, establishes civil and criminal penalties for the creation and spreading of deepfakes, which are deceptive videos or photos. The bipartisan bill passed unanimously in the Senate and Assembly, and was signed into law by Governor Phil Murphy on April 2nd, 2025. Per press release, the Governor was joined at the signing by Lieutenant Governor Tahesha Way, Attorney General Matt Platkin, and Westfield High School student and activist Francesca Mani. The Lieutenant Governor highlighted the law’s importance in preventing AI-generated content’s ability to spread disinformation, potentially interfering in New Jersey elections.
“This legislation sends a clear message: New Jersey is ready for AI – both for all the good it can do, as well as the dangers it presents. And further, we will not tolerate attempts to manipulate our democratic processes. By establishing civil and criminal penalties for the creation and distribution of deceptive media, we are equipping our state with the tools to hold bad actors accountable,” she said.
Beyond deepfakes’ potential to sway election outcomes, the legislation also protects private citizens from being harmed. Francesca Mani was named one of TIME100’s Most Influential People in AI for her activism in campaigning at the state and national level for policy addressing deepfakes, which was born from her and her classmates being the target of deepfake imagery.
Bill S3432 | “Establishes Next New Jersey Program for artificial intelligence investments.”
Introduced: June 10th, 2024
Signed into Law: July 25th, 2024
New Jersey Bill S3432, also known as A4558, established the Next New Jersey Program, which is intended to attract AI industry development to the state. “AI has already started to revolutionize our everyday lives, and New Jersey is capitalizing on this moment to ensure we establish ourselves as a frontrunner in generative AI innovation,” said Governor Phil Murphy via press release. “The creation of this program will support the growth of AI-related businesses, which could lead to scientific breakthroughs and lifesaving discoveries right in our backyard. AI will be a transformative industry that will change lives and grow our economy, and New Jersey is ready to take the lead,” he continued.
According to the same press release, the program will be rolled out by the New Jersey Economic Development Authority (NJEDA), which will issue tax credits to eligible businesses in the artificial intelligence industry, including large-scale artificial intelligence data centers. The NJEDA issues a similar tax credit program to film and digital media companies, which has brought many major studios and filming projects to the Garden State.
Regarding what types of companies might qualify, the press release stated, “Artificial intelligence-related activities could include developing new algorithms and techniques, such as machine learning and natural language processing; creating AI-powered software and hardware products, including for medical modeling; and developing AI chatbots for customer service.”
Bills that have not become law
S4293 | “Requires owner or operator of data center to submit water and energy usage report to BPU.”
Introduced: March 24th, 2025
Bill S4293, also known as Bill A5548, would require data centers to report water and energy usage data to the New Jersey Board of Public Utilities. The centers have been proliferating in the state as high-speed internet demands increase in relation to the artificial intelligence boom. The bill was passed by the State Senate, but was conditionally vetoed by Governor Phil Murphy on October 20th, 2025. The Governor requested that additional measures be included in the legislation, requiring state regulators to evaluate whether the data centers have passed on any additional costs to their surrounding neighbors.
S1438 | “Concerns regulation of automated systems and artificial intelligence used by State agencies.”
Introduced: January 9th, 2024
New Jersey State Legislature Bill S1438 would regulate the use of artificial intelligence and automated systems by the New Jersey state government and its agencies. Automated systems would include any technologies using algorithms to make decisions, financial and otherwise. The bill, if signed into law, would also establish a New Jersey Artificial Intelligence Advisory Board, a committee dedicated to regulating the state’s use of artificial intelligence, along with the already existing Office of Information Technology.
Since its introduction, the bill has been referred to the State Government, Wagering, Tourism & Historic Preservation Committee.
Bill A5164 | “Regulates artificial intelligence in the news media industry; establishes “Artificial Intelligence In Communications Oversight Committee.”
Introduced: January 14th, 2025
Bill A5164 aims to regulate the use of artificial intelligence in the news media industry. Citing similar concerns as proponents of the existing anti-deepfake legislation, the bill’s sponsors expressed concern about the potential for AI to spread disinformation. In addition to this, the bill was concerned with properly compensating journalists whose work is pulled by generative AI, citing the lack of compensation or credit as theft of intellectual property. The bill stipulated that while AI technologies present “enormous opportunities” with many potential benefits, “It is in the interest of New Jersey citizens for the State to take further action to regulate artificial intelligence, particularly in the news media industry, in order to protect journalistic integrity and the responsible dissemination of news.”
The bill would establish an Artificial Intelligence In Communications Oversight Committee within the already-existing New Jersey Office of Innovation Artificial Intelligence Task Force. The committee would establish guidelines for the use of artificial intelligence in the news media industry, and monitor the impact of artificial intelligence on journalists’ wages, work standards, potential job loss, and data collection used to manipulate opinions.
The bill has been referred to the New Jersey State Assembly Science, Innovation, and Technology Committee.
Bill S4143 | “Requires energy usage plan for proposed artificial intelligence data centers and cryptocurrency mining facilities; requires all electricity for artificial intelligence data centers and cryptocurrency mining facilities to be derived from new clean energy sources.”
Introduced February 20th, 2025
The bill, also titled A5564, would require proposed artificial intelligence data centers and cryptocurrency mining facilities to report energy usage plans and would require all electricity used by the facilities to be derived from “new clean energy sources.”
Similar to Bill S4293, the bill would require data centers to report energy usage data to the New Jersey Board of Public Utilities (BPU). Bill S4143, however, would go a step further in requiring the centers to have their energy usage plans pre-approved by the BPU and mandating where the energy is sourced. The bill was reported from the Senate Environment and Energy Committee on March 17th, 2025, and amended on June 2nd 2025. The amended bill is up for a second vote in the State Senate.
Bill A5462 | “Requires electric public utilities to develop and apply special rules for certain data centers to protect non-data center customers from increased costs”
Introduced: March 17th, 2025
Bill A5462 is also related to data centers’ energy usage and its impact on nearby residents. The
bill would require electric companies to develop and apply a special tariff to data centers. The bill specifies that the tariff should be designed to ensure that non-data center customers are not seeing increased costs as a result of the data centers’ high demand for energy. The bill also instructs that the tariff should incentivize data centers to, “ develop and utilize methods to
increase energy efficiency, including through the use of technologies that capture and utilize the heat produced by the data center.”
The bill was amended and subsequently passed in the State Assembly in June of 2025, and was received in the Senate and referred to the Senate Budget and Appropriations Committee on October 20th, 2025.
National Context
One prominent area in which states have been proactive in passing artificial intelligence-related legislation is surrounding deepfakes. Per Ballotpedia, since 2019, 47 states have passed legislation addressing deepfakes, with California, Texas, New York, and Utah leading the charge. The majority of deepfake-related legislation pertains to explicit images, especially those of minors. Increasingly, legislation has been addressing the use of deepfakes in news and political contexts.
Colorado passed a comprehensive bill commonly known as the Colorado Artificial Intelligence Act. The bill text is officially titled Consumer Protections for Artificial Intelligence, and requires developers of “high-risk” artificial intelligence systems to protect consumers from any known or “reasonably foreseeable” algorithmic discrimination. The legislation covers similar areas as the New Jersey Attorney General Matt Platkin’s guidance earlier this year, which stated existing anti-discrimination laws apply to the use of artificial intelligence. A key difference is that Colorado’s legislation specifically targets the developers of artificial intelligence systems, rather than just entities that utilize them.
Regarding data centers. The Department of Energy has published guidance for optimizing energy usage for data centers used by the federal government, but there is no legislation applying to data centers in the private sector. The New York State Senate is circulating a similar bill, bill S6394A to New Jersey’s S4293, titled “An act to amend the public service law, the public authorities law and the energy law, in relation to regulation of energy consumption by data centers.”
Per the Commercial Real Estate Development Association, 36 states have legislation authorizing tax incentives for new data center development, including New Jersey’s Next New Jersey Program.
One state that has been a leader in this trend is Virginia, which has extended an exemption to the state’s retail sales and use tax to large-scale data centers since 2010. Regulations on data-center development in Virginia are primarily made by local governments, and a statewide bill that would have required the centers to report noise and environmental impacts was vetoed in May of this year.
This article is ongoing and will be updated as new information is made publicly available.
Follow @thehobokengirl on Instagram + TikTok for the latest Hoboken and Jersey City updates, sign up for our weekly newsletter here that shares everything you missed each week, and check out our events calendar, which has over 100+ events weekly to peruse.
