NYC Council Proposes AI Checks and Whistleblower Rewards

New York City Council Speaker Julie Menin has proposed a package of bills that would require outside validation and human shutdown controls for covered artificial intelligence systems, while creating financial incentives for whistleblowers who report violations. The proposals are not law and are scheduled for a Committee of the Whole hearing on October 5, when all 51 council members are expected to participate, according to the Council’s announcement as described in reports. One measure would bar businesses from marketing, offering for sale or deploying covered AI systems in the city unless an outside reviewer validates them. The reviews would assess areas including data quality, bias, privacy and security, with requirements set by the city. Covered systems would also need a human override, or kill switch, capable of shutting them down. The proposal describes penalties of up to $25,000 for each instance of certain violations, including operating without required validation or falsifying a validation. A separate bill would allow whistleblowers to receive a share of fines or penalties recovered from AI companies found to have violated applicable laws.