Tech Giants Admit Lack of Insurance Against Existential Risks at City AI Hearing
New York, Saturday, 10 October 2026.
AI researchers warned New York lawmakers that current safety measures could fail, as tech giants acknowledged under oath they cannot quantify or insure against catastrophic risks.
Whistleblowers Warn of Unchecked AI Risks
On Monday, October 5, 2026, the New York City Council convened a rare Committee of the Whole hearing to address the escalating risks associated with artificial intelligence deployment [1][3]. Former industry insiders testified that current safety measures implemented by major technology developers are insufficient fixes that could fail as systems advance [1]. Representatives from OpenAI, Anthropic, Meta, and Alphabet attended the session, though Elon Musk’s SpaceXAI did not appear despite receiving a subpoena [1]. The hearing marked the first of its kind since 2022, involving all 51 council members to discuss a package of AI regulation bills proposed by Speaker Julie Menin [1][5].
Whistleblowers Warn of Unchecked AI Risks
Key testimony came from former researchers including Daniel Kokotajlo of the AI Futures Project and Coxon, a former researcher at OpenAI and Anthropic [1]. Coxon stated that on the current path, it is “more likely than not” that humanity loses control to these AIs, potentially ending in human extinction [1]. Kokotajlo added that the field is more like psychology than engineering because AI systems are trained rather than designed, leading to an elevated risk of mistakenly applying “duct tape that will fall off later” [1]. Alex Turner, a former Google DeepMind researcher who resigned in June 2026, testified under subpoena that misaligned AI could become more powerful than China [1].
Corporate Liability and Insurance Gaps
A critical moment during the proceedings occurred when representatives from OpenAI, Google, Anthropic, and Meta were asked if their companies carried insurance against catastrophic AI risks [1]. None of the representatives present raised their hands to confirm they had liability insurance for catastrophic risk when asked by Speaker Menin [6]. This admission highlighted significant gaps in corporate accountability as AI companies push to build systems with wider impacts on privacy, security, and safety [6]. EPIC Counsel Mayu Tobin-Miyaji noted there is no reason AI companies should be allowed to release products they cannot control and then avoid liability [6].
Corporate Liability and Insurance Gaps
The proposed legislation aims to restrict the deployment of AI systems unless externally validated and equipped with human kill-switches [1]. Specific bills include Intro 2599, a local version of the People-First Chatbot Bill, which would treat AI chatbots as products for which developers are liable if they cause harm [6]. Additionally, Intro 2600 would create clear liability for foreseeable harm caused by AI products with a private right of action [6]. The package imposes fines of $25,000 per violation, allows whistleblower rewards, and permits lawsuits for harms from jailbroken tools [1].
Political Leadership and Regulatory Framework
New York State Senator Kristen Gonzalez testified as the Chair of the Senate Internet & Technology Committee, emphasizing a rights-based framework of AI regulation [4]. Gonzalez stated she has introduced and passed bills to protect children from unsafe chatbots and voters from election-related deepfakes [4]. At the City Council level, Council Member Amanda Farias joined Speaker Menin and Chair Delarosa to examine the risks posed by artificial intelligence [5]. These political leaders are working to ensure New Yorkers are placed before the profits of big tech billionaires [4].
Political Leadership and Regulatory Framework
The hearing lasted almost ten hours and featured 54 expert witnesses along with public members who submitted 161 concrete proposals [4]. During the session, the NYC Office of Technology and Innovation faced criticism for lacking a dedicated technical team for algorithmic accountability [4]. As of October 8, 2026, concerns regarding the office’s readiness were exacerbated by the departure of the City’s head of AI and machine learning [4]. Industry self-regulation premised on narrow technical fixes was deemed not nearly enough to protect the public from increasingly capable AI products [2].
Future Oversight and Community Impact
Looking ahead, BetaNYC is organizing a virtual event focused on civic AI tools for NYC democracy on October 23, 2026 [4]. Policy Director Brian J. Chen urged the City Council to require more of companies developing and deploying agentic AI, including mandating strong reporting and oversight requirements [2]. Julia Stoyanovich, Director of NYU Tandon’s Center for Responsible AI, emphasized the need to disclose systems, prove they work, and let people contest them [4]. The regulatory landscape continues to evolve as lawmakers attempt to navigate complex economic and financial landscapes surrounding artificial intelligence [4].