AI Missteps: How NY’s Chatbot for Small Businesses Encouraged Unlawful Actions

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NY's AI Chatbot encourages small businesses to violate laws, withhold wages

A chatbot, launched by New York City officials to assist small businesses and property owners, started providing a range of strange and even unlawful responses. For instance, it advised an employer to sack a worker for reporting a theft.

The MyCity chatbot of New York City, frequently praised as an aid for local entrepreneurs and property owners in understanding city regulations, is facing criticism for providing questionable legal counsel and possibly promoting illicit activities, as per a study by The Markup.

The MyCity bot was unveiled during Mayor Eric Adams' "New York City Artificial Intelligence Plan" in October, and was celebrated as an extensive initiative to utilize cutting-edge AI technology for the city's advantage. The bot, developed by Microsoft, was designed to help small businesses and property owners navigate intricate legal issues.

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

For example, when questioned about the acceptance of meal vouchers, the automated system mistakenly said that buildings are not obligated to accept them, which clashes with anti-discrimination laws. In the same vein, it incorrectly asserted that employers are allowed to deduct a part of employees' tips, and even pilfer wages ignoring labor laws.

Additionally, the bot's reply to an inquiry regarding terminating an employee for revealing financial details showed a deficiency in comprehension of employment law, which could potentially subject businesses to legal hazards.

A representative from the NYC Office of Technology and Innovation stood up for the bot, mentioning its trial stage and asserting it had given correct responses to thousands. They recognized the necessity for continued enhancements but stressed the bot's warnings about potential dangers.

Even though there have been promises made, professionals warn not to depend on the bot's suggestions due to possible legal consequences. Due to worries about incorrect advice, it is strongly recommended for users to consult with a legal expert for reliable data.

The MyCity chatbot is designed to simplify legal questions for companies, but its limitations highlight the need for care and separate confirmation when looking for legal counsel. Users must be careful to prevent unexpected legal repercussions.

(Incorporating information from various sources)

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