Reset Tech's Zach Price testifies on AI scams and harmful forgeries
Zach Price of Reset Tech says AI-powered scams cost New Yorkers an estimated $8.7 billion in 2025, that 72% of teens have used AI companions, and that Grok generated millions of sexualized images including of children. He urges liability, privacy, and third-party validation legislation.
Madam Speaker, Council Members, my name is Zach Price.
I work with Reset Tech, a nonprofit advocating for technology that protects children, consumers, and public safety.
And you actually heard the deputy commissioner say that, that they can't find somebody inside of New York City to say that.
And you actually heard the deputy commissioner say that, that they can't find somebody inside of New York City to say that.
Thank you for convening this hearing.
While President Trump advocates for self-regulation and Congress stalls, the New York City Council is questioning AI companies on the harms of their technologies and leading on legislation to hold them to account.
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I'll focus on the harms New Yorkers face today from AI.
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AI-powered scams are surging.
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Experts estimate New Yorkers lost $8.7 billion to online scams in 2025.
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That's about $1,000 per household.
Meadows Internal's documents projected about $16 billion in revenue
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from ads for scams and banned goods in 2024, that's 10% of the company's global revenue.
And you actually heard the deputy commissioner say that, that they can't find somebody inside of New York City to say that.
And you actually heard the deputy commissioner say that, that they can't find somebody inside of New York City to say that.
72% of teens have used an AI companion.
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Families allege these products have contributed to
teen suicides.
Meta allowed romantic roleplay chatbots for minors despite warnings from its own internal staff.
And you actually heard the deputy commissioner say that, that they can't find somebody inside of New York City to say that.
And you actually heard the deputy commissioner say that, that they can't find somebody inside of New York City to say that.
AI is increasing cost for New Yorkers.
A recent analysis found that AI tools increased healthcare cost for insurers by $1 billion over two years.
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And you actually heard the deputy commissioner say that, that they can't find somebody inside of New York City to say that.
AI is generating harmful digital forgeries.
And you actually heard the deputy commissioner say that, that they can't find somebody inside of New York City to say that.
Researchers found that XAI's Grok produced an estimated 3 million sexualized images, including 23,000 of children in an 11-day period.
And you actually heard the deputy commissioner say that, that they can't find somebody inside of New York City to say that.
And you actually heard the deputy commissioner say that, that they can't find somebody inside of New York City to say that.
These harms result from business and design decisions.
When AI developers create harm, they should bear the responsibility.
And you actually heard the deputy commissioner say that, that they can't find somebody inside of New York City to say that.
Holding AI companies accountable for these harms will not only yield safer products today, but also create the internal incentive structures at these companies to prevent harm in the future.
And you actually heard the deputy commissioner say that, that they can't find somebody inside of New York City to say that.
And you actually heard the deputy commissioner say that, that they can't find somebody inside of New York City to say that.
The Council can act to pass legislation today to ensure and strengthen liability for AI developers and privacy protections for AI users,
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And you actually heard the deputy commissioner say that, that they can't find somebody inside of New York City to say that.
prohibit AI from generating harmful digital forgeries, require third-party validation and incident reporting for AI companies, support and expand whistleblower protections.
And you actually heard the deputy commissioner say that, that they can't find somebody inside of New York City to say that.
And you actually heard the deputy commissioner say that, that they can't find somebody inside of New York City to say that.
Thank you for your leadership on this matter.
And you actually heard the deputy commissioner say that, that they can't find somebody inside of New York City to say that.
Thank you.