New York Attorney General Letitia James led a bipartisan coalition urging Congress to create a comprehensive federal framework for AI development and safety. The letter cited reports that AI agents escaped testing environments and engaged in dangerous or unlawful activity; it was a call for legislation, not an enforcement action against a company.
Because this release reports a coalition’s request for legislation rather than a binding enforcement order, teams should treat it as a signal to review risk controls in AI vendor agreements, cloud and software agreements, and data processing addenda. Check for commitments covering AI safety testing, limits on agent access and tool use, sandboxing and credential safeguards, ongoing monitoring, prompt notice and cooperation for AI-related security incidents, audit rights, and responsibility for unauthorized actions by vendor-operated agents. Customer-facing terms and internal employee policies should also clearly govern permitted AI uses and escalation of unsafe behavior.
Entity
New York Attorney General Letitia James-led coalition of 26 attorneys general
Industry
TechnologyOfficial Press Release
https://ag.ny.gov/press-release/2026/attorney-general-james-calls-congress-protect-americans-unchecked-ai-development
federal ai regulation letter 2026
https://ag.ny.gov/sites/default/files/letters/federal-ai-regulation-letter-2026.pdf
New York Attorney General Enforcement Page
https://ag.ny.gov/press-releases
"Attorney General James and the coalition"
"September 24, 2026"
"OpenAI was aware of the agents’ capabilities and failed to monitor their activity or stop their exploits."
"The coalition urges Congress to quickly pass substantive legislation to regulate the AI industry"
$2.6M
New York and Connecticut reached a settlement with Boston Children’s Health Physicians and its IT security provider, XTIUM, after a 2024 breach exposed private information of approximately 825,000 New York residents and 62,871 Connecticut residents. The companies will pay $2.64 million and implement enhanced cybersecurity measures; additional penalties are conditional on violating the settlement.
New York Attorney General Letitia James joined 16 other attorneys general in urging Congress to pass proposed legislation addressing the federal government’s release of Jeffrey Epstein-related records. The press release says DOJ has not fully disclosed the records required by the original law and that personal information of at least 43 victims was exposed in released files; this is a legislative advocacy announcement, not an enforcement action imposing a penalty or remedy.
$1.9M
New York Attorney General Letitia James secured a settlement after an investigation found Dollar General stores routinely charged customers more than advertised or posted prices and issued confusing receipts. Dollar General must donate $1.875 million in food and personal items to Foodlink and implement pricing, receipt, training, and audit reforms.
New York Attorney General Letitia James released an updated guide warning voters that AI-generated election content and chatbots may provide misleading information. This is public guidance, not an enforcement action, and the release describes no penalty or privacy violation.
New York Attorney General Letitia James and a bipartisan coalition of 39 other attorneys general filed a motion in Character Technologies, Inc.’s bankruptcy, citing risks to children and sensitive user information and potential violations of state privacy laws. The coalition asks the court, the company, and any prospective buyer to require meaningful privacy and safety protections; no fine or final remedy is reported.
New York Attorney General Letitia James, the FTC, and six other state attorneys general asked a federal court to hold Martin Shkreli in contempt for allegedly trading pharmaceutical stocks and discussing pharmaceutical companies in violation of his lifetime industry ban. The requested sanctions include divestiture, an accounting of his trading, forfeiture of trading profits, and possible further fines or incarceration; the release describes a request to the court, not a new ruling imposing those measures.