New York City stands by AI chatbot that counseled entrepreneurs to bypass regulations

New York City Mayor Eric Adams is facing criticism over the city’s new artificial intelligence chatbot, MyCity, which has been providing incorrect information to business owners. The chatbot was launched as a pilot in October with the promise of offering accurate and reliable information to users. However, it has been found to give wrong answers, including advising employers to take a cut of workers’ tips, and stating that there were no regulations requiring bosses to notify employees of schedule changes. Mayor Adams has acknowledged the issues with the chatbot, emphasizing that it is a pilot program and that adjustments need to be made to improve its accuracy.

Despite the shortcomings of the MyCity chatbot, Mayor Adams has been a proponent of deploying untested technology in the city. In the past, he placed a 400-pound robot in the Times Square subway station as a crime deterrent but it was retired after about five months due to its ineffectiveness. The chatbot, which uses Microsoft’s Azure AI service, has been criticized for providing incorrect information, such as stating that store owners are free to go cashless despite a 2020 law banning stores from refusing to accept cash. Additionally, it has not kept up-to-date with changes in regulations, still citing the city’s minimum wage as $15 per hour when it was raised to $16 as of 2024.

Microsoft, the provider of the AI technology used in the MyCity chatbot, has declined to comment on the specific issues causing inaccuracies but has stated that they are working with the city to address the problems. The city’s Office of Technology and Innovation has also acknowledged the inaccuracies and has pledged to significantly improve the chatbot’s responses. Disclaimers have been added to the chatbot website warning users that the responses may sometimes be inaccurate or incomplete and advising against using the information as legal or professional advice.

Andrew Rigie, director of the NYC Hospitality Alliance, has expressed concerns about the chatbot’s incorrect guidance for business owners. He commended the city for attempting to use AI technology to assist businesses but emphasized the importance of the information being accurate to avoid legal consequences. Business owners have reported confusion over the chatbot’s responses, leading to them seeking clarification from their legal counsel. The city is working to rectify the issues with the chatbot and improve its accuracy to ensure that it fulfills its intended purpose of providing helpful and reliable information to users.

In conclusion, Mayor Eric Adams and the city of New York are facing criticism over the MyCity chatbot’s inaccuracies and incorrect information provided to business owners. The chatbot, launched as a pilot program to offer actionable and trusted information, has been found to give wrong answers, including advising employers to take a cut of workers’ tips and incorrectly stating regulations regarding schedule changes. Microsoft, the provider of the AI technology used in the chatbot, is working with the city to address the problems and improve the accuracy of the responses. The city is taking steps to update disclaimers on the chatbot website and mitigate inaccurate answers to prevent legal issues for business owners following the chatbot’s guidance.