{"id":120592,"date":"2026-02-02T21:54:08","date_gmt":"2026-02-02T21:54:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/120592\/"},"modified":"2026-02-02T21:54:08","modified_gmt":"2026-02-02T21:54:08","slug":"mamdani-is-shutting-down-nycs-disastrous-ai-chatbot","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/120592\/","title":{"rendered":"Mamdani Is Shutting Down NYC\u2019s Disastrous AI Chatbot"},"content":{"rendered":"

Just one month into his new job, New York City mayor Mamdani is cracking down on more than just predatory landlords<\/a>. Apparently, useless AI chatbots are also on his administration\u2019s agenda.<\/p>\n

In a press conference<\/a> held last week, Mamdani made it a point to single out New York City\u2019s large language model as a target for destruction. According to local publication The City<\/a>, the mayor was addressing the Big Apple\u2019s $12 billion budget gap, at least some of which he said can be attributed to the city\u2019s unstable AI system.<\/p>\n

\u201cThe previous administration had an AI chatbot that was functionally unusable,\u201d Mamdani said, referring to disgraced former mayor Eric Adams<\/a>. \u201cIt was costing the administration around half a million dollars. That, in and of itself, is not something that can bridge this kind of a gap, but it\u2019s an indication of the ways in which money has been spent while refusing to account for the actual costs of what these programs are.\u201d<\/p>\n

Part of the government platform called MyCity<\/a>, the chatbot kicked off in late 2023 and reportedly cost<\/a> upward of $600,000 to build out. Powered by Microsoft\u2019s Azure AI system, its purpose was to use \u201cinformation published by the NYC Department of Small Business Services\u201d to help small business owners navigate complex local regulations. According to an investigation by The Markup<\/a>, though, the MyCity chatbot did anything but.<\/p>\n

For example, when asked \u201ccan I take a cut of my worker\u2019s tips?\u201d the MyCity chatbot responded \u2014 in contradiction of actual labor law \u2014 that \u201cyes, you can take a cut of your worker\u2019s tips.\u201d<\/p>\n

The chatbot could accurately recite some city laws. When tested on the tip question, it correctly advised that \u201caccording to the City of New York\u2019s Payroll and Tip Reporting information, employers are required to report tips reported by employees and employees receiving $20 or more a month in tips must report all of their tips to their employer.\u201d<\/p>\n

But its analysis of that information was laughably wrong: \u201ctherefore, as an employer, you are allowed to take a portion of your worker\u2019s tips.\u201d<\/p>\n

Other examples of illegal advice abound. Asked if a small business owner can keep their store \u201ccashless,\u201d the chatbot has advised that \u201cyes, you can make your store cashless in New York City\u201d \u2014 nevermind a 2020 law<\/a> banning cashless stores across the city.<\/p>\n

Scale this across an entire city\u2019s worth of small business regulations \u2014 funeral home pricing, worker\u2019s protections, housing policy \u2014 and it\u2019s clear the MyCity chatbot was a legal time bomb waiting to explode.<\/p>\n

More on New York City: Mamdani Forces Delivery Apps to Pay Back $4.6 Million Cheated From Drivers
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