NYC’s AI Chatbot for Small Businesses Under Fire for Providing Erroneous Legal Advice

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New York's AI Chatbot advises small businesses to violate laws, commit wage theft

New York City officials launched a chatbot to assist small businesses and property owners, but it started dispensing strange and sometimes illegal advice. For instance, it suggested to an employer to terminate an employee for reporting theft.

The MyCity chatbot in New York City, frequently promoted as a resource aiding local entrepreneurs and property owners in understanding city regulations, is facing examination following allegations of providing questionable legal counsel and possibly promoting illegal activities, as per an article by The Markup.

The MyCity bot was launched as a component of Mayor Eric Adams' "New York City Artificial Intelligence Plan" in October of last year. The bot was lauded as a broad initiative to utilize cutting-edge AI tech for the city's advantage. Developed by Microsoft, the bot's goal was to aid small businesses and property owners in comprehending intricate legal issues.

Nonetheless, The Markup's investigations uncovered concerning 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 prompting users to break the law.

For example, the bot incorrectly conveyed that buildings are not obligated to accept meal vouchers, which contradicts anti-discrimination laws. In the same vein, it erroneously confirmed that employers have the right to take a share of their employees' tips and even withhold wages, thereby ignoring labor laws.

Additionally, the bot's answer to an inquiry regarding terminating an employee for revealing financial details showed a deficiency in comprehension of labor laws, 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 stage and stating that it has offered correct responses to thousands of users. They agreed that there is a continuous need for enhancements, but highlighted the bot's warnings about potential risks.

Even with guarantees, specialists warn about depending too much on the bot's suggestions, emphasizing the possible legal consequences for users. Due to worries about incorrect advice, users are encouraged to consult with professional legal advisors for reliable information.

The MyCity chatbot is designed to simplify legal questions for businesses, but its limitations highlight the need for carefulness and independent checks when looking for legal guidance. Users need to be diligent to prevent unexpected legal outcomes.

(Incorporating information from various sources)

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