New York Doubles Down on AI Regulation with Kill Switches and Mandatory Registration Requirements

New York Takes Dual Approach to AI Regulation

New York is positioning itself at the forefront of AI regulation through coordinated state and city-level initiatives. Governor Kathy Hochul announced that large frontier AI models must register with the state starting November under the RAISE Act, while New York City Council Speaker Julie Menin unveiled a comprehensive package of bills on Friday requiring AI systems sold in the city to pass third-party validation and include kill switch safeguards1

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. The RAISE Act applies to AI companies with annual revenues exceeding $500 million that build frontier AI models developed, deployed, or operating in New York3

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These AI safety laws require companies to report critical safety incidents within 72 hours to the state's new Office of Digital Innovation, Governance, Integrity and Trust3

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. Companies failing to comply face civil penalties. Hochul stated she wouldn't rule out additional safeguards, saying "We may even explore safeguards like AI kill switches if they're deemed feasible and in the best interest of our state"4

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City Council Introduces Comprehensive AI Bills

The New York City Council's legislative package goes further than state requirements. One bill mandates that AI companies cannot market, offer for sale, or deploy AI systems in the five boroughs without third-party validation from outside experts to vet internal safety claims2

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. Another requires kill switches—defined as human overrides that can shut down systems—for any AI tool used in the city. Failure to comply results in $25,000 fines for each offense2

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A separate bill creates what Julie Menin describes as a "first-in-the-nation approach" offering whistleblower protections through cash rewards funded by fines collected from violators2

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. The bills will be heard on October 5 at a Committee of the Whole hearing—a rare convening of all 51 council members that hasn't occurred since 20221

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Federal Inaction Drives Local Leadership

Menin emphasized that regulating AI systems falls squarely within city jurisdiction given that major AI companies have established substantial New York presences. Google employs more than 14,000 people in the city, Meta leases 1.2 million square feet at 50 Hudson Yards, Anthropic leased an entire 16-story building at 330 Hudson Street expecting over 1,000 city employees by year's end, and OpenAI took 90,000 square feet at the Puck Building in 20241

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"We obviously are not in any way looking to stifle innovation. We want to ensure that New York stays the AI capital of the world, but with that comes responsibility," Julie Menin told Fortune1

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. She described the legislation as filling a vacuum left by federal inaction, noting "In New York City we regulate all sorts of products and services, everything from barber shops to nail salons, and yet here we have a situation with AI where there is very little regulation"1

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Congress has held nearly a decade of hearings on artificial intelligence while passing almost nothing to make it safer. The first federal AI bill was introduced in 2017 and went nowhere. When OpenAI CEO Sam Altman asked the Senate to regulate his industry in 2023, then-Majority Leader Chuck Schumer responded with nine closed-door forums that produced a roadmap but no bill1

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. President Trump created a Justice Department task force to sue states over their AI laws, with Colorado gutting its own law five weeks after being sued1

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Tech Leaders Invited to Testify

The council invited CEOs from Anthropic, OpenAI, Google, SpaceX, and Meta—Dario Amodei, Sam Altman, Sundar Pichai, Elon Musk, and Mark Zuckerberg—to testify at the October 5 hearing1

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. Sources tell Fortune that none of the five requested heads are likely to testify, though the City Council reserves the right to subpoena them1

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Growing Concerns Drive Regulatory Push

The council attributed the urgency to "growing concerns that advanced and frontier AI models development could pose potentially catastrophic risks" without escalating oversight2

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. Public fears intensified when Anthropic researcher Jacob Coxon resigned earlier this month, claiming AI "could kill us all by the end of the decade"2

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Kathy Hochul framed her administration's approach in direct contrast to federal policy: "Donald Trump and Washington Republicans may be standing still as AI grows more unpredictable, but New York will not," she said4

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. Trump dismissed AI safety concerns as "a hoax" and posted that he won't "stifle growth" of technology "bigger than the Industrial Revolution"4

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Marc Gilman was appointed New York's Deputy Director for the RAISE Act to support implementation3

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. Menin's approach draws from her course at Columbia University examining "When Cities Take the Lead" in situations where "the federal government is deregulating or failing to act"1

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. The goal, she explained, is building public trust: "These kinds of regulations actually improve people's faith in these AI technologies"1

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