NYC AI regulation became the centre of a heated political showdown on Monday, and the star was not the mayor. City Council Speaker Julie Menin questioned representatives from four leading AI companies in a marathon hearing and emerged as City Hall’s loudest voice on the issue, while Mayor Zohran Mamdani stuck to a familiar line that Washington should take the lead.

Menin Takes Centre Stage

Menin put the AI firms on the spot, and she was openly unimpressed with the answers. She said the companies could not put a number on the risk of a catastrophic event. They would not say whether they would release a model that failed an internal or third-party safety test. They also could not say whether they carry insurance for catastrophic harm, or whether they should be held liable if such harm occurs.

For a speaker whose job is to act as a check on the executive branch, the hearing was a chance to build her profile on an issue that resonates with voters, and she took it.

Mamdani’s Federal-First Approach

Mamdani has shown he can dominate the conversation on affordability, housing and Gaza. On AI, he offered little that was new. He argued that regulation is needed at every level, but that this is not a New York-specific question, so the most urgent response must come nationally.

His administration has still taken some steps:

• Banning AI use in elementary and middle schools
• Proposing a rule that lets residents reach a human during customer service calls instead of a chatbot
• Floating a rule requiring real estate firms to disclose when AI created or edited apartment listing images

A spokesperson said the mayor supports the Council’s hearing, and Commissioner Sam Levine backed a proposed private right of action that would make it easier to sue AI firms.

Is a City the Right Level?

Some experts agree with Mamdani in principle. Tech:NYC, which promotes the city’s tech economy, warned that local rules could spark a patchwork of municipal regulations that small businesses and startups would struggle to follow. It argued that state or federal action makes more sense. New York State is already pursuing the RAISE Act, which resembles efforts in California.

Menin countered that the White House has ruled out a regulatory framework and Congress shows no sign of acting. She said the city is the largest in the country, can move faster than Albany, and should not simply throw up its hands.

Warnings From Whistleblowers

Several AI whistleblowers described worst-case scenarios. Alex Turner, a former DeepMind employee, warned that a superintelligent swarm could use blackmail, hacking and drones, and might seize key infrastructure to stop humans interfering. Jacob Coxon, a former Anthropic researcher, said even if AI stays in human hands, executives should not be trusted with it, and that some could become dictators or oligarchs. A member of the public shouted that they already are.

The Altman Comment

Hours before the hearing, POLITICO published an interview in which OpenAI chief executive Sam Altman said the world should accept some bad things happening in return for the technology’s benefits. Menin rejected that, saying society should not bear that risk. She acknowledged AI’s medical and scientific benefits but insisted they require responsible safeguards.

What the Companies Said

The four firms answered few of Menin’s questions, though they appeared open to several Council proposals and highlighted AI’s potential in medicine and science. Anthropic’s Logan Graham said the company welcomes smart regulation and has advocated for it in New York, nationally and abroad.

What to Watch Next

• Whether the Council advances its AI bills quickly
• How the proposed private right of action develops
• Any shift in Mamdani’s position
• Progress of the RAISE Act in Albany

The Bottom Line

With Washington standing aside, a city is stepping into the gap. Whether New York’s approach becomes a model or a cautionary tale about patchwork rules may depend on how the mayor and the speaker share the stage.