NEW YORK CITY — The New York City Council introduced a package of bills to regulate artificial intelligence systems on September 25, 2026. The proposed legislation requires AI systems sold or deployed in New York City to undergo third-party validation for data quality, bias, privacy, and security.
New York City Council Speaker Julie Menin scheduled a Committee of the Whole hearing on the AI legislation for October 5, 2026. This hearing marks the first such session since 2022. Menin invited Dario Amodei, Sam Altman, Sundar Pichai, Elon Musk, and Mark Zuckerberg to testify at the hearing.
Sources indicate that none of the five invited CEOs are likely to testify. The New York City Council reserves the right to subpoena the invited CEOs if they decline to appear. "You want to be the capital of innovation, and you want to be the capital of smart, sensible regulation and guardrails around it, because you want people to have faith in the product itself," Julie Menin said. "But that also means we now have an even greater responsibility to ensure that we have the appropriate safeguards in place to protect New Yorkers from unintended consequences," she said. "This is not an industry that should self-regulate," she said.
The proposed legislation includes a requirement for AI systems to include a human override, referred to as a 'kill switch,' capable of shutting down the system. Violations of the proposed AI regulations would incur a $25,000 fine per instance. Validation standards for AI systems would be set by the New York City Office of Cyber Command.
One proposed bill would allow whistleblowers to receive a share of fines recovered from AI companies that violate the law. A companion measure would protect city employees and contractors who report AI threats to public safety. Proposed bills would require city contractors to report AI safety incidents within 24 hours.
A proposed bill would allow individuals to sue AI companies for harm caused by third parties circumventing safety controls if the harm was foreseeable and the company lacked reasonable safeguards. Proposed bills would prohibit false or misleading safety claims by AI companies. Proposed bills would set privacy rules for chatbots based on the Electronic Privacy Information Center’s People-First Chatbot Bill.
Proposed bills would require the city to plan for AI-driven attacks on its systems. In 2025, the New York City Council passed the RAISE Act, which established an Office of Algorithmic Accountability to review AI systems used by city agencies and require risk assessments for algorithmic decision-making. She previously served as commissioner of the Department of Consumer and Worker Protection from 2014 to 2021.
"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," she said. "I don’t believe these two ideas are mutually exclusive at all. In fact, I think they go hand in hand."
Google employs more than 14,000 people in New York City. Meta leases 1.2 million square feet at 50 Hudson Yards in New York City. Anthropic leased a 16-story building at 330 Hudson Street in New York City in summer 2026. OpenAI leased 90,000 square feet at the Puck Building in New York City in 2024.
Why It Matters
The New York City Council’s use of a Committee of the Whole for AI legislation marks the first such hearing since 2022. The scale of the tech industry's presence in the city is notable, with Google employing more than 14,000 people and Meta leasing 1.2 million square feet. Anthropic and OpenAI have also expanded their physical footprints in New York City in recent years.
The proposed regulations aim to balance innovation with safety. The potential for subpoenas indicates the Council's determination to secure testimony from top executives. The outcome of this hearing could influence how local regulations interact with state and federal AI laws.
Timeline
The FUTURE of AI Act was introduced in the U.S. Congress in 2017 and did not pass. Sam Altman asked the U.S. Senate to regulate the AI industry in 2023. Then-Majority Leader Chuck Schumer held nine closed-door forums on AI in 2023 that produced a roadmap but no bill.
The U.S. Senate voted 99-1 in July 2025 to strip a provision from Senator Ted Cruz that would have banned state AI laws for 10 years. Julie Menin was elected as Speaker of the New York City Council on January 7, 2026. OpenAI argued in a July 2026 post that states could pass mirroring AI laws in the absence of federal regulation.
What's New
The Committee of the Whole hearing is scheduled for October 5, 2026, and was set by New York City Council Speaker Julie Menin. The New York City Council has not convened a Committee of the Whole hearing since 2022, according to official records of the City Council. Julie Menin introduced 12 bills in the 2026 legislative session, with 5 bills in Committee, 2 laid over in Committee, 2 enacted (Mayor's Desk for Signature), and 3 enacted.
"We have to remember that the city of New York regulates all sorts of industries," she said. "New York City is fast becoming the technology and AI capital of the world, which we want to encourage."
How Sources Differ
Sources differ on specific details regarding the New York City Council's actions. The New York City Council schedule notes that all 51 members of the New York City Council are expected to attend the October 5 hearing. Meet Speaker Menin - Julie Menin describes the hearing as marking the first such session since 2022, reflecting the Council’s prioritization of AI regulation. New York City Council records state that a Committee of the Whole hearing has not occurred in the New York City Council since 2022.
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