New York proposed fining OpenAI and rivals $25,000 per rule-breaking bot.
New York City Council Speaker Julie Menin unveiled a package of AI bills on 25 September, Fortune reported.
They would cover companies that sell or deploy AI systems in the city.
The proposals require outside checks of AI systems and a human "kill switch". Violations would carry fines of $25,000, while city contractors would have 24 hours to report incidents. Whistleblowers would be paid from recovered fines, and people harmed could sue.
If a swarm of AI agents breaks the rules, Menin said, the fine would apply per agent.
"This is not an industry that should self-regulate," Menin said. "We want to ensure that New York stays the AI capital of the world, but with that comes responsibility."
The AI companies already have a large footprint in the city. Google employs more than 14,000 people there. OpenAI leases 90,000 square feet in the Puck Building, while Anthropic has a 16-story building on Hudson Street, Fortune wrote. The companies did not immediately respond to Fortune's requests for comment.
A Council hearing is set for 5 October.
Could you tell a regulator today how many AI agents your company runs?
Sources
Our file on OpenAI
- 7 Oct
Analysts said Claude subscribers use 42% of Anthropic's computing. They pay 10% of sales.
- 4 Oct
AI chipmaker Cerebras debuted at $95 billion. It is now worth $39 billion.
- 1 Oct
Google's new AI guessed wrong on 15% of questions it couldn't answer. OpenAI's 51%.
- 30 Sept
OpenAI faced Florida's 49-page bid to halt model development without outside safeguards.
- 30 Sept
OpenAI sought $30 billion, valuing it at $1.4 trillion, Bloomberg reported.
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