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Public Testimony

Mackenzie Arnold urges broad liability scope and AG partnership

New York City Council · Oct 5, 2026 · starts 6:49:03 · 2 min 26 sec

Mackenzie Arnold of the Institute for Law and AI emphasizes liability as an essential tool, noting the summer's autonomous cyber incidents went unnoticed. She urges the Council to broaden scope beyond chatbots to deployed internal systems and to partner with the AG and whistleblowers on enforcement.

Carmen N. De La Rosa

Thank you.

Member of the Public - Mackenzie Arnold

Thank you, and a special thanks to Speaker Manon for putting this together and for all the council members here.

Member of the Public - Mackenzie Arnold

My name is Mackenzie Arnold.

Member of the Public - Mackenzie Arnold

I'm the Managing Director of the U.S.

Member of the Public - Mackenzie Arnold

Law and Policy Team at the Institute for Law and AI.

Member of the Public - Mackenzie Arnold

And as you might guess from the title, we do legal research and policy advising related to frontier AI questions, and especially the legal challenges posed by AI.

Member of the Public - Mackenzie Arnold

It might not surprise you, but three years ago, I testified in front of the U.S.

Member of the Public - Mackenzie Arnold

Senate on AI and liability.

Member of the Public - Mackenzie Arnold

And maybe it's worth going back to some of the recommendations I made there.

Member of the Public - Mackenzie Arnold

First, that agentic harms are coming.

Member of the Public - Mackenzie Arnold

That was clear three years ago.

Member of the Public - Mackenzie Arnold

It's clear now.

Member of the Public - Mackenzie Arnold

Unfortunately, we haven't risen to that challenge, but you're doing some of the work to get us there.

Member of the Public - Mackenzie Arnold

Second, and maybe just as importantly, I want to emphasize that liability is an essential tool, and the status quo simply is not enough.

Member of the Public - Mackenzie Arnold

And we don't need to think of some hypothetical future world to figure that out.

Member of the Public - Mackenzie Arnold

Liability exists right now, right?

Member of the Public - Mackenzie Arnold

Those incentives are here.

Member of the Public - Mackenzie Arnold

They were here this summer.

Member of the Public - Mackenzie Arnold

And what happened with the status quo?

Member of the Public - Mackenzie Arnold

We had a spate of cyber incidents, not by humans, but by autonomous AI systems.

Member of the Public - Mackenzie Arnold

Not only that, but they went unnoticed for extended periods of time by the people positioned to find them.

Member of the Public - Mackenzie Arnold

And even in the rare occasions when they did get indications, they often failed to communicate that information internally to the people who could.

Member of the Public - Mackenzie Arnold

That status quo simply can't hold.

Member of the Public - Mackenzie Arnold

So what can we do going forward?

Member of the Public - Mackenzie Arnold

I think you need to get the information right, the scope right, and enforcement right.

Member of the Public - Mackenzie Arnold

On the scope, I'd encourage you to think beyond just chatbots.

Member of the Public - Mackenzie Arnold

This is a question of agents.

Member of the Public - Mackenzie Arnold

Also think beyond systems that are not yet deployed.

Member of the Public - Mackenzie Arnold

These harms that occurred over the summer were not commercially available models.

Member of the Public - Mackenzie Arnold

They were systems that were inside of OpenAI, inside of Anthropic and Meta.

Member of the Public - Mackenzie Arnold

In terms of information, we need to make sure that companies are monitoring their systems, recording that information, and providing it to you in the form of incident reports.

Member of the Public - Mackenzie Arnold

And in order to make all of that work, you'll need to partner with the state attorney general and with whistleblowers to bring cases.

Member of the Public - Mackenzie Arnold

Like I said, liability won't be the only solution or the entire solution, but it's a great first step, and I appreciate all of your efforts.