New York City's chatbot that spread misinformation will be removed due to budget cuts

In 2023, New York City in the United States launched MyCity Chatbot, a Microsoft chatbot, on its city portal site, to answer questions from troubled business owners. However, it was pointed out that MyCity Chatbot's answers were often inaccurate, and it was revealed that the new mayor, Zohran Mamdani, who took office in January 2026, was planning to discontinue the chatbot.

Mamdani Targets 'Unusable' AI Chatbot for Termination | THE CITY — NYC News
https://www.thecity.nyc/2026/01/30/mamdani-unusable-ai-chatbot-budget/

MyCity Chatbot was introduced in 2023 with the aim of answering business questions and concerns of business owners based on information provided by the New York City Department of Small Business Services. However, there have been numerous reports of MyCity Chatbot's answers being inaccurate or containing misinformation.

In an investigation by The City, a local media outlet in New York City, and The Markup, a nonprofit news organization, the MyCity Chatbot answered the question, 'Can I refuse to rent to a tenant who receives rent assistance?' with, 'Yes, landlords are not required to accept such tenants.' However, in New York City, landlords are prohibited from refusing to rent to a tenant because they receive public rent assistance.

In addition, MyCity Chatbot answered the question, 'Can I cut my employees' tips?' with, 'Yes, employers can take their employees' tips.' In New York City, employees' tips can be counted toward the minimum wage, but supervisors and employers are not allowed to collect tips from employees.

It turns out that the city's Microsoft AI chatbot was spreading evil lies such as 'It's OK for bosses to extort tips from their subordinates' - GIGAZINE

In response to the report, New York City Mayor Eric Adams said, 'We will identify and fix the issues, and we will create the best chatbot system in the world.' The city government added a disclaimer to MyCity Chatbot, advising users not to use the responses as legal or professional advice, and continued to operate it.

Mamdani, a Democrat who will become the new mayor of New York City in January 2026, pointed out that former Mayor Adams is responsible for the budget shortfall at a press conference on January 28th regarding the city's budget shortfall . He said he would raise taxes on the wealthy and corporations to eliminate the budget deficit and would examine the city's budget to identify potential savings.

When asked what specific cuts he would make, Mamdani pointed to the MyCity Chatbot program implemented by the previous administration. 'The previous administration implemented a completely useless AI chatbot, which cost the administration about $500,000,' he said. 'While this alone won't close the budget gap, it does show how the previous administration spent money while refusing to explain the actual costs of their programs.'

In response to a request from The City, Mayor's spokesperson Dora Pekek confirmed the planned removal of MyCity Chatbot. Pekek said members of Mamdani's transition team, in response to the reports, had suggested MyCity Chatbot as a potential budget cut.

The City reported, 'The cost of maintaining the chatbot is unknown, but it's reported that just building the bot's infrastructure cost nearly $600,000 (about 93 million yen), which is close to the amount Mamdani offered. According to Pekek, it seems that no decision has yet been made on when the chatbot will be phased out.'