New York City writes bill to rein in AI while insisting it wants to be the ‘AI capital of the world’

New York City is drafting legislation to regulate the use of artificial intelligence systems sold within the city, despite federal inaction on the matter. Council Speaker Julie Menin unveiled a package of bills that would require AI systems to undergo independent validation, have a kill switch, compensate whistleblowers who report violations, and allow residents to sue companies for harm caused by AI tools.

These bills will be presented for a Committee of the Whole hearing on October 5, where the CEOs of major AI companies, including Anthropic, OpenAI, Google, SpaceXAI, and Meta, were invited to testify. However, it is unlikely that the CEOs will appear as the hearing is a Committee of the Whole, which has not occurred in the City Council since 2022.

Menin, a regulatory attorney and former Department of Consumer and Worker Protection commissioner, believes that New York City has the responsibility to regulate AI due to the lack of federal oversight. She argues that the bills are not intended to stifle innovation but rather to ensure that the city remains the AI capital of the world while maintaining sensible regulations and guardrails.

The bills aim to improve public trust in AI technologies by enhancing safety and accountability measures.