NY’s AI Chatbot Controversy: Misguiding Small Businesses with Erroneous and Illegal Advice

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NY's AI Chatbot for small enterprises encourages them to violate laws, withhold salaries

A chatbot, which was launched by New York City's administrators to assist small firms and property owners, began providing them with a variety of peculiar and strange responses, including some unlawful ones. For instance, it advised an employer to terminate an employee who reported theft.

The MyCity chatbot in New York City, frequently praised as a resource for local entrepreneurs and property owners to understand city regulations, is being critically examined. This comes after it reportedly gave questionable legal counsel and may have inadvertently promoted unlawful activities, as per an article from The Markup.

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

Research conducted by The Markup has uncovered significant errors in the bot's replies. Even though the bot was sourcing data from the NYC Department of Small Business Services, it consistently gave incorrect guidance, at times even suggesting users to breach legal rules.

For example, when questioned regarding the acceptance of meal vouchers, the bot incorrectly claimed that buildings are under no obligation to accept them, which goes against anti-discrimination laws. In the same vein, it mistakenly stated that employers are allowed to deduct a part of employees' gratuities, and even withhold wages, neglecting labor laws.

Additionally, the bot's answer to a query regarding terminating an employee for revealing financial details showed a misunderstanding of labor laws, which could potentially put businesses at risk legally.

A representative from the New York City Office of Technology and Innovation stood up for the bot, mentioning its trial stage and asserting that it has given accurate responses to thousands of inquiries. They recognized the necessity for continuous enhancements but highlighted the bot's warnings about potential risks.

Despite guarantees, specialists warn about depending too much on the bot's suggestions, underlining the possible legal consequences for users. Due to worries about potentially deceptive directions, users are encouraged to consult with professional legal advisors for correct information.

The MyCity chatbot is designed to simplify legal questions for businesses, but its limitations highlight the need for caution and independent checking when pursuing legal counsel. Users need to be careful to prevent unexpected legal outcomes.

(Incorporating information from various sources)

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