NYC MYCITY CHATBOT

2023-2026

In October 2023, New York City Mayor Eric Adams proudly unveiled the MyCity Business site, featuring an AI-powered chatbot designed to help small business owners navigate the city’s notoriously complex regulations. Powered by Microsoft, the bot was supposed to be the "future of government service." Sounds great.

But this AI advisor confidently dispensed illegal advice that could land a business owners in jail or a lawsuit. It told users that employers could legally pocket workers' tips (hello VERY illegal), that landlords could refuse tenants with housing vouchers, and even suggested that a restaurant could still serve cheese nibbled on by a rat, provided the staff "informed the customers about the situation."

Despite the bot becoming a laughingstock and a legal liability, the city initially refused to take it down, arguing that "learning through public testing" was part of the process. It was unplugged in 2026 by a new administration.

Additional info:

AP News: NYC's AI chatbot caught telling businesses to break the law—but the city isn't taking it down.

The Markup: NYC AI Chatbot Touted by Adams Tells Businesses to Break the Law.

OECD AI Incidents: A technical and legal breakdown of the MyCity Chatbot incident.