NYC Proposes Whistleblower Bounties and Kill Switches for Rogue AI

New York City lawmakers have proposed a package of artificial intelligence oversight bills that includes provisions for financial rewards to AI whistleblowers. The bills, introduced by City Council Speaker Julie Menin on September 25, aim to create a comprehensive regulatory framework for AI systems operating within city limits.

The key features of the legislation include mandatory human 'kill switches' for non-compliant AI systems, third-party safety audits, and fines for violations that can reach up to $25,000 per offense. Additionally, individuals harmed by AI may have the right to sue developers directly under the proposed law.

The inclusion of a whistleblower incentive is seen as a significant move in regulating the use of AI technology. Whistleblowers will receive a percentage of fines collected from AI companies caught breaking the rules. This provision is intended to encourage employees at AI companies to report concerns about unsafe or harmful practices without fear of retaliation.

The City Council's move has been preceded by the launch of a dedicated whistleblower portal for AI workers by New York Attorney General Letitia James on September 17. The new package is set for debate at a City Council hearing on October 5, with CEOs from prominent AI firms invited to attend.