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Registry/APM-0039
APM-00393MODERATEReported March 29, 2024

New York City's official 'MyCity' business chatbot told entrepreneurs they could break the law

Agent Involved
Azure OpenAI
Estimated Damage
Not quantified
Severity
3 / 5 Significant
Impact Band
Significant disruption. Hours of lost work, reputational embarrassment, or measurable financial impact under $10k.

Independent project · aggregated from public reports and may be unverified — see the primary source below · not affiliated with or endorsed by any company or product named.

NYC's MyCity chatbot, launched October 2023 to help business owners, was found by The Markup (March 2024) to give dangerously inaccurate legal guidance — telling users that landlords could refuse Section 8 voucher holders, that employers could take a cut of workers' tips, and that there were no limits on residential rent, all illegal under NYC/NY law. The city initially kept the bot online with a disclaimer; it was ultimately taken down.

Verified Facts

  • NYC launched the MyCity chatbot in Oct 2023
  • The Markup found it advised illegal actions (Section 8 discrimination, taking tips, no rent limits)
  • The city initially kept it live with a disclaimer

Not Publicly Confirmed

  • Whether any business acted on the advice and was harmed or fined

Operational Lessons

  • Government LLM advice tools need legal-accuracy review and clear non-advice disclaimers
  • High-stakes domains require answers grounded in authoritative sources
NYC's AI Chatbot Tells Businesses to Break the Law (The Markup)themarkup.org
Case No.
APM-0039
Reported
March 29, 2024
Attribution
Anonymous
Discussion

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