Congress Introduces AI Whistleblower Protection Act to Address Emerging Tech Risks

On May 15, 2025, Senate Judiciary Committee Chair Chuck Grassley (R-Iowa) introduced the Artificial Intelligence (AI) Whistleblower Protection Act with the objective of safeguarding tech employees and whistleblowers in the AI sector.

From restrictive severance offers to mandatory non-disclosure agreements, workers in the AI space currently face a myriad of challenges discouraging them from disclosing critical information on working conditions, tech vulnerabilities, and security concerns to the federal government and general public. The AI Whistleblower Protection Act thus marks a significant development in the protection afforded not only to employees in the field, but also to consumers of AI technology.

Bipartisan Support for AI Whistleblower Legislation

Support for the AI Whistleblower Protection Act can be found on both sides of the aisle. Co-sponsors of the Act include Senators Chris Coons (D-Del.), Marsha Blackburn (R-Tenn.), Amy Klobuchar (D-Minn.), Josh Hawley (R-Mo.) and Brian Schatz (D-Hawai‘i), and Representatives Jay Obernolte (R-Calif.) and Ted Lieu (D-Calif.) are introducing companion legislation in the House of Representatives.

The bi-partisan support for the legislation indicates that the bill has come at a critical moment amidst the rapid growth of AI companies and resulting gap in laws and directives regulating AI development and implementation.

Key Protections for AI Whistleblowers

The bipartisan legislation aims to safeguard AI employees who come forward with companies’ violations of law or failure to respond to a substantial danger which AI technology poses to national security or the public interest. The bill achieves these goals by providing relief for AI whistleblowers who have suffered retaliation, including double back pay, reinstatement, and compensation for any damages incurred.

Summary of the AI Whistleblower Protection Act

Some of the Bill’s main terms include:

• Protecting whistleblowers who make disclosures relating to the development, deployment, or use of AI that may pose a risk to public safety, public health, or national security;

• Protecting whistleblowers who make disclosures relating to security vulnerabilities that could potentially allow the theft of emerging AI technology by a foreign country or an unlawful actor;

• Prohibiting companies from taking or threatening to take any retaliatory employment action against current or former covered employees or contractors for lawfully reporting suspected AI security vulnerabilities internally or to the Government, or for assisting in any Government investigation or proceeding;

• Allowing aggrieved individuals to file a complaint with the Secretary of Labor and potentially in federal district court, with the right to a jury trial; and

• Prohibiting companies from securing a waiver of the above rights and protections through any kind of employment agreement, arbitration requirement, or severance agreement.

Senator Grassley on the Importance of AI Transparency

In announcing the proposed legislation, Senator Grassley emphasized the importance of whistleblowers and the service they provide to the public good: “Transparency brings accountability. Today, too many people working in AI feel they’re unable to speak up when they see something wrong.

Whistleblowers are one of the best ways to ensure Congress keeps pace as the AI industry rapidly develops. We need to act to make these protections crystal clear. I’m proud to introduce this legislation to increase accountability and protect AI whistleblowers.”

Why Legal Protections for AI Whistleblowers Are Critical

Although AI is a relatively new (yet rapidly developing) product, it has already proven to have significant reach, impacting industries like healthcare, finance, retail, and parts of the public sector. Given its pervasive influence, clear regulations and legal directives on how to safely and ethically use the technology are increasingly necessary.

But the law often lags behind technological advancement, and AI whistleblowers face certain risks particular to the technology industry, including legal uncertainty and lack of clear legal pathways for reporting company wrongdoing. Indeed, because AI and its implications are only just being discovered and developed, there is little legal precedent available to aid judges and courts faced with cases related to the subject.

Recognizing that AI whistleblowers play a critical role in the ethical development of new technological advancements, the AI Whistleblower Protection Act sets a framework for future legal decisions. Moreover, by establishing strong protections for the people closest to this new technology, the Act ensures that insiders can report on the security shortcomings and potential dangers of AI without fear of retaliation.

Building on Existing Whistleblower Programs

Although AI is new, anti-retaliatory protections and monetary incentives for whistleblowers are not. Various government agencies have long recognized the important role that whistleblowers play in improving and protecting the public good and have established reporting programs intended to encourage disclosures. For example, the United States Securities and Exchange Commission (SEC) and Commodities Future Trading Commission (CFTC) both provide specific whistleblower programs to incentivize employees to expose potential violations of federal securities or commodities laws with monetary awards and protection against employer retaliation.

These programs are effective: by the end of fiscal year 2023, The SEC’s whistleblower award program had provided 400 whistleblowers with nearly $2 billion in compensation, with some awards amounting to hundreds of millions of dollars. Both the CFTC and the SEC programs provide anonymity, confidentiality, and anti-retaliatory measures to ensure maximum protection for whistleblowers.

How Miller Shah Helps AI Whistleblowers

Miller Shah is deeply experienced litigating cases involving these and other whistleblower programs. Our legal professionals can help potential whistleblowers leverage the protections of the proposed AI Whistleblower Protection Act. As AI and other technology continue to develop, we stay at the forefront of the relationship between technology, legislation, and labor rights. If you believe you have information about a security concern or legal violation pertaining to AI, contact us today to discuss your options.