Most existing state AI laws do not require labs to hire an external auditor. California’s SB 53 and New York’s RAISE Act just require AI companies to publish a safety framework describing how they will test their models for dangerous capabilities and then to follow it. The frameworks are written by the companies, and testing can be done internally. Only Illinois’s SB 315 requires companies to undergo an annual third-party audit starting in 2028.
“There’s a lot of headroom for increasing not only reporting requirements for these companies, but also review by external bodies,” says Peter Salib, a law professor at the University of Houston Law Center. Those reviewers could be private auditors accredited by the government but chosen and paid for by the AI companies. Alternatively, they could be government agencies or insurance companies.
Legislation
None of this is an accident. The laws on the books that failed to hold AI companies accountable for agentic cyberattacks emerged amid fierce lobbying by the AI industry.
SB 1047, the California AI bill that was vetoed by Governor Gavin Newsom in 2024 after lobbying by OpenAI, Meta, Anthropic, and the venture capital firm Andreessen Horowitz, proposed a much tougher set of rules. It would have required AI companies to report a broader set of safety incidents (including incidents in which a model acts on its own or slips its controls), undergo annual third-party audits, and maintain a kill switch. But after a year of intense negotiations, Newsom signed SB 53, which narrowed the types of incidents deemed reportable and dropped the requirements for audits and kill switches.
New York’s RAISE Act followed the same arc. “The version of the RAISE Act that the NY Legislature passed would have required disclosure of this ‘incident,’” Alex Bores, the New York state assembly member who sponsored the bill, wrote on X. New York’s original bill also included third-party audits.
With political pressure mounting, new bills creating better reporting, auditing, and liability regimes for AI development are on the horizon. In Congress, the AI Incident Reporting Act would require AI companies to report to the Commerce Department when a model evades human oversight or breaches a system, even if it doesn’t cause any harm. The Frontier Act would require incident reporting and independent audits. In New York, the Understanding Artificial Intelligence Act, sponsored by Bores, would make companies liable when a model does something that if carried out by a human would be a tort or crime.
As AI agents increasingly become better at launching cyberattacks, the law remains behind. Closing the gap will require lawmakers to move faster than the next breakout.
