Legislators Demand Review of Tech Contracts Under Adams Administration

Following a POLITICO investigation, officials have called for enhanced protections concerning technology procurements.

Legislators Demand Review of Tech Contracts Under Adams Administration
**NEW YORK** — A group of lawmakers has urged the city comptroller’s office to conduct an “immediate and thorough audit of technology contracts” after a PMG investigation revealed efforts by an artificial intelligence company to gain influence within Mayor Eric Adams’ administration.

The company in question, Remark Holdings, secured a significant ally in high-ranking aide Timothy Pearson, who facilitated at least four meetings between New York City Fire Department officials and Remark earlier this year. Evidence from social media accounts indicates Pearson had a personal connection with a consultant linked to Remark.

Despite FDNY's dissatisfaction with Remark's technology and their decision not to engage the company, the city nonetheless piloted Remark’s technology as a fire detection tool at a Brooklyn migrant shelter, the investigation disclosed.

Concerns surrounding Remark, along with a report detailing how another tech firm obtained over $1.4 million in Department of Education contracts after enlisting the schools chancellor’s brother as a consultant, have raised fears about the integrity of the city’s procurement processes. “These issues appear vulnerable to abuse and risk eroding public trust in our government,” the lawmakers expressed in a letter to Comptroller Brad Lander, shared exclusively with PMG.

The letter is co-signed by Council Member Jennifer Gutiérrez, chair of the technology committee; Council Member Lincoln Restler, chair of the committee on governmental operations; and state Sen. Kristen Gonzalez, chair of the committee on internet and technology.

“We also believe that this audit should examine the broader landscape of how technology contracts are awarded, and whether additional reforms are needed to protect against future conflicts of interest, the potential for data security breaches, and improper data sharing,” they emphasized.

Adams’ Democratic reelection challengers have added their voices to the criticism.

Former city Comptroller Scott Stringer, also running against Adams in the upcoming election, suggested that the city should closely scrutinize AI companies seeking contracts and create additional safeguards.

“This technology has arrived, and we have to monitor it; we have to make sure that people are protected,” Stringer remarked in an interview.

Other candidates have pointed to PMG’s findings as evidence of a lack of trust surrounding Adams’ administration.

Queens state Sen. Jessica Ramos explicitly criticized the mayor for not removing Pearson, stating that it “leaves all of us with the impression that he has no problems with his laundry list of misconduct.”

Pearson's phone was recently seized by federal agents as part of a widening corruption investigation.

“Every time Pearson’s name has come up recently, it reveals a new breach of the public’s trust. This is a man who took a role at City Hall and asked himself how he could use it to enrich himself, rather than how he could serve people,” Ramos stated to PMG. “What sickens me the most, is how his corruption compromised City Hall’s ability to manage the migrant influx.”

Albert Fox Cahn, founder and executive director of the Surveillance Technology Oversight Project, expressed concern that a migrant shelter is the “last place on earth” for the city to implement surveillance technology, given the potential risks related to data sharing with federal immigration and law enforcement agencies or hacker access.

“We can’t be a sanctuary city and a surveillance city at the same time,” he asserted in an interview.

He also questioned the rationale for utilizing AI technology for fire detection, commenting, “it’s very difficult for me to believe it would ever be as remotely reliable as the $10 smoke alarm that runs off a nine-volt battery.”

Lander, who is also announcing his candidacy for mayor, refrained from clarifying whether he intends to employ his office’s subpoena power or any other oversight authority to examine the administration’s relationship with Remark or other tech pilot programs.

“The hardworking people of New York City deserve a city government and leadership they can trust — and this is just the latest example of the Adams administration’s inability to deliver it,” Lander stated in a written response to PMG.

In reaction to PMG’s investigation, Adams spokesperson Liz Garcia declined to comment or answer questions regarding the city's engagement with Remark, its interest in new technologies for public safety, or Pearson’s ties to the Remark consultant. Garcia noted that Mayor Adams has consistently urged staff to adhere to the city’s ethics laws.

Kai-Shing Tao, Remark’s CEO, dismissed any implication that his company’s technology could jeopardize security for New York City, asserting that Remark’s products meet stringent European data security certifications.

“There are a lot of people out there who are trying to do good, and I think we are one of them,” Tao said in an interview. “We think we can provide a lot of value from an efficiency standpoint.”

Joe Anuta and Sally Goldenberg contributed to this report.

Lucas Dupont contributed to this report for TROIB News