New York City Council proposes legislation to reward AI whistleblowers

New York City is moving to regulate artificial intelligence (AI) with proposed legislation aimed at encouraging whistleblowers to report harmful AI practices. A key proposal would allow whistleblowers to receive a share of fines levied against companies found to be in violation of AI regulations.

This initiative is part of a broader package of bills designed to strengthen AI oversight within the city. The council is also considering a measure that would permit individuals harmed by AI systems to sue system developers under specific circumstances. The legislation is expected to be debated by the full 51-member council soon.

The proposals were unveiled by City Council Speaker Adrienne Adams ahead of a public hearing scheduled for October 5th concerning AI risks and safeguards. The city's push for stricter AI regulation comes amid growing concerns about the rapid advancement of AI models, with figures like former Anthropic researcher Jacob Cockerson warning of potential existential risks.

Speaker Adams has requested the CEOs of major AI companies, including Anthropic, OpenAI, Google, and Meta, to attend the October hearing, signaling the council's readiness to use subpoena power if necessary. She emphasized the city's role as a growing tech and AI hub necessitates establishing appropriate safeguards for its residents.

Additional proposed measures include requiring third-party verification for AI systems before they are marketed or deployed in New York City and mandating the inclusion of human-controlled "emergency shut-off switches." Another proposal would require chatbot providers to adhere to data privacy, security, and transparency regulations, granting the city enforcement authority.