New York City Mayor Mamdani has announced plans to dismantle the city’s AI chatbot, a component of the MyCity platform, citing its ineffectiveness and significant costs. In a press conference held last week, the mayor highlighted the chatbot’s contribution to the city’s ongoing budget challenges, which currently stand at a staggering $12 billion.
Mamdani criticized the previous administration, led by former Mayor Eric Adams, for investing in a system that he described as “functionally unusable.” He revealed that the chatbot had been costing the city approximately $500,000 annually, emphasizing that while this amount alone would not close the budget gap, it reflects a broader issue of financial mismanagement.
The MyCity chatbot was introduced in late 2023 and was developed at a cost exceeding $600,000. Powered by Microsoft’s Azure AI system, it aimed to assist small business owners by providing guidance on local regulations. However, findings from an investigation by The Markup revealed that the chatbot frequently dispensed incorrect and potentially illegal advice.
For instance, when queried about the legality of taking a portion of employee tips, the chatbot erroneously stated that it was permissible. Despite offering some accurate legal references, its conclusions often contradicted established labor laws, creating confusion for users.
The chatbot also provided misleading information about cashless businesses, claiming it was acceptable to operate a cashless store in New York City, despite a 2020 law that prohibits such practices. These inaccuracies raised serious concerns about the chatbot’s reliability, particularly in a city that relies on clear regulatory guidance for small businesses.
Mamdani’s decision to shut down the MyCity chatbot is part of a broader initiative to address fiscal accountability and improve city services. By cutting unproductive expenditures, the mayor aims to redirect resources toward more effective solutions that can genuinely assist New Yorkers.
As the city faces a significant budgetary challenge, the focus now shifts to how Mamdani’s administration will tackle the remaining issues and ensure that public funds are utilized efficiently. The decision to eliminate the chatbot underscores a commitment to transparency and accountability in governance, mirroring the broader goals of his administration.
With the closure of the MyCity chatbot, New York City seeks to move forward and implement more effective tools and resources that genuinely benefit its residents and small business owners.
