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Agency Testimony

Milstein on NIST risk categories and Intro 2601 concerns

New York City Council · Oct 5, 2026 · starts 5:26:46 · 2 min 17 sec

Milstein categorizes AI risks using NIST definitions, distinguishing cyber attacks on AI systems from AI-induced harms. She notes Intro 2601's 24-hour notice requirement conflicts with existing breach protocols and state SHIELD Act rules.

Sarah Milstein

holders today, including on whether initiatives like this one could help spur a market for such services.

Sarah Milstein

Pre-considered introduction of 2026 to 601 would require the Office of Cyber Command to establish standards and procedures for contractors to identify the occurrence of a reportable AI safety incident.

Sarah Milstein

To take a step back, I'd like to lay out how AI risk and incidents are categorized according to the National Institute for Standards and Technology, NIST.

Sarah Milstein

Under AI under attack, AI cybersecurity incidents are traditional cybersecurity compromises where the AI system is the target, for example, data poisoning or jailbreaks.

Sarah Milstein

Misuse or malfunction, AI-induced incidents, would be harms resulting from the use or failure of AI aside from a cyber compromise.

Sarah Milstein

In this category, the AI system itself behaves exactly as it was built or trained, but the real-world outcome causes harm.

Sarah Milstein

These incidents are not cyber attacks.

Sarah Milstein

We understand the Council's intent here, given the publicized instances of AI systems operating outside the bounds of their intended use.

Sarah Milstein

As I noted earlier, the risk landscape is constantly evolving, and we are continuing to evolve our strategies to keep the city's infrastructure safe.

Sarah Milstein

But not all threats related to AI systems are necessarily cyber attacks, and the legislation as written does not address that.

Sarah Milstein

Cyber Command would be a critical stakeholder in this discussion, but it is important to emphasize that we need to work with our stakeholders.

Sarah Milstein

state and federal partners to address these issues holistically.

Sarah Milstein

I also want to provide further context on breaches of security generally.

Sarah Milstein

Agency disclosure of a breach of security in any form is governed by Section 10502 of the Administrative Code.

Sarah Milstein

There are extensive protocols for interagency coordination in the event of any breach of security.

Sarah Milstein

These protocols are aligned with the New York State Stop Hacks and Improve Electronic Data Security, SHIELD Act.

Sarah Milstein

Current law, policies, and protocols are in place for incidents described in the legislation.

Sarah Milstein

Further, the threshold of 24-hour public notice is inconsistent with current law and would compromise the city's investigation of a cyber incident.