- Mamdani calls the business chatbot “functionally useless” and orders it removed
- The chatbot repeatedly gave incorrect or illegal advice to city business owners
- Former Mayor Adams defended the system, claiming improvements would make it the best chatbot
New York City Mayor Zohran Mamdani has announced plans to shut down a business chatbot launched under Mayor Eric Adams’ administration, calling it “functionally useless.”
At a recent press conference about the city’s $12 billion budget gap, Mamdani said the chatbot cost the city about half a million dollars while providing unreliable guidance to business owners.
The bot, called MyCity Chatbot, was originally designed to act as a productivity tool for business owners, helping them navigate city rules and regulations.
Chatbot gave fake and illegal answers
Test of Markup and The city in 2024 it found it was regularly giving inaccurate or potentially illegal advice.
For example, it suggested that landlords could discriminate against Section 8 tenants and improperly informed businesses that it was acceptable to refuse cash payments, despite city law.
The tool also misrepresented labor laws, such as the minimum wage, and recommended actions that could expose business owners to legal risks.
Mamdani cited these repeated failures as the main reason for his decision to end the service.
After initial reports, the Adams administration defended the chatbot and promised future improvements.
“We identify what the problems are, we solve them, and we want to have the best chatbot system on the planet,” Adams said.
But the city later added disclaimers warning users not to rely on the bot for legal or professional advice.
The chatbot also limited the types of questions it would answer, reducing its usefulness as a collaboration tool for businesses.
Built using Microsoft’s cloud hosting platform, the bot was part of MyCity’s digital overhaul to streamline access to city services.
The foundation reportedly cost nearly $600,000, and ongoing maintenance added additional costs, though the exact numbers remain unclear.
In addition to financial concerns, the system relied heavily on outside contractors and complex office software, which contributed to inefficiencies and limited usability.
Despite numerous restrictions and updates, the tool reportedly continued to produce harmful or incorrect guidance.
Mamdani’s decision highlights the risks of implementing automated systems as public-facing tools without adequate oversight.
Via The city
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