AI Misfire: NYC’s Chatbot for Small Businesses Under Scrutiny for Providing Misleading and Illegal Advice

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New York's AI Chatbot for small enterprises encourages them to violate laws, embezzle salaries

New York City officials launched a chatbot aimed at assisting small businesses and property owners, but it began providing a range of strange and peculiar responses, including some that were unlawful. For instance, it advised a boss to dismiss a worker for reporting a robbery.

The MyCity chatbot of New York City, typically promoted as a useful resource for local entrepreneurs and property owners to understand city regulations, is now being questioned. This comes after it supposedly provided questionable legal counsel and possibly promoted illegal activities, as per a report by The Markup.

Unveiled during Mayor Eric Adams' "New York City Artificial Intelligence Plan" in October, the MyCity bot was celebrated as a sweeping initiative to utilize cutting-edge AI technology for the advantage of the city. Driven by Microsoft, the bot was designed to help small businesses and property owners comprehend complicated legal issues.

Nonetheless, The Markup's inquiries uncovered worrying errors in the bot's replies. Even though it sourced its information from the NYC Department of Small Business Services, the bot continually dispensed incorrect suggestions, occasionally urging users to break the law.

For example, the bot made a mistake when it stated that buildings aren't obligated to accept meal vouchers, which goes against anti-discrimination laws. In the same vein, it erroneously confirmed that employers have the right to deduct a part of their employees' tips and even withhold wages, disregarding labor laws.

Additionally, the bot's reply to a query about terminating an employee for revealing financial details showed a misunderstanding of employment law, which could potentially put businesses at risk legally.

A representative from the New York City Office of Technology and Innovation supported the bot, mentioning its trial period and asserting that it has given thousands of people correct responses. They recognized the necessity for continuous upgrades but highlighted the bot's warnings about potential risks.

Even though there are guarantees, specialists warn about depending too much on the bot's recommendations, emphasizing the possible legal consequences for users. Due to worries about potentially incorrect advice, users are advised to consult with a professional legal advisor for precise information.

The MyCity chatbot is designed to simplify legal queries for businesses. However, its limitations highlight the need for carefulness and independent checking when looking for legal counsel. Users need to be careful to prevent unexpected legal outcomes.

(Incorporating information from various sources)

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