New York City lawmakers propose financial rewards for AI whistleblowers

New York City just turned AI regulation into a bounty system. City Council Speaker Julie Menin introduced a package of artificial intelligence oversight bills on September 25 that includes a provision paying whistleblowers a percentage of fines collected from AI companies caught breaking the rules. What’s in the package The whistleblower incentive is the headline grabber, but it sits inside a much broader legislative push. The bills would require mandatory human “kill switches” for non-compliant AI systems, meaning a real person must be able to shut things down when an algorithm goes sideways. Third-party safety audits would also become a requirement. Fines for violations can reach up to $25,000 per offense. Another bill in the package would expand legal rights for individuals harmed by AI, opening the door for people to sue developers directly. The full package is set for debate at a City Council hearing on October 5, where all 51 council members are expected to participate. CEOs from prominent AI firms have been invited to attend. The whistleblower pipeline is already open The City Council’s move didn’t come out of nowhere. New York Attorney General Letitia James launched a dedic...