Mamdani to kill the NYC AI chatbot we caught telling businesses to break the law

Read the original at The Markup ↗
Cite

Lecher, C., Honan, K., & CITY, T. (2026, September 5). Mamdani to kill the NYC AI chatbot we caught telling businesses to break the law. The Markup. https://themarkup.org/artificial-intelligence/2026/01/30/mamdani-to-kill-the-nyc-ai-chatbot-we-caught-telling-businesses-to-break-the-law

Dated when The Aporia collected the article, usually within hours of publication. Check the original for its exact date and byline.

The Markup · collected 2026-09-05 · by Colin Lecher, Katie Honan, THE CITY

Quick Summary

New York City Mayor Zohran Mamdani plans to shut down an AI chatbot developed by his predecessor Eric Adams' administration, which provided businesses with inaccurate and potentially illegal advice. The chatbot, built at a cost of nearly $600,000, was found to suggest that employers could take workers' tips and landlords could discriminate based on income source. Mamdani made the announcement during a press conference discussing the city's $12 billion budget gap, which he blames on Adams. A spokesperson for Mamdani confirmed plans to take down the chatbot as part of efforts to cut costs and close the deficit.
Written locally by qwen2.5:14b on 2026-09-05, using this article's own text rather than the other coverage of the same event (that is the story summary below).

AI analysis runs on qwen2.5:14b, locally

Story summary

Mayor Zohran Mamdani, as part of New York City's $12 billion budget gap discussion, identified an artificial intelligence (AI) chatbot built by Microsoft using its cloud computing platform as a potential area for cost savings. The chatbot, released in fall 2023 under the previous administration led by Eric Adams, was intended to help business owners navigate city rules and regulations, but it provided answers that would lead to illegal behavior if followed, such as taking a cut of employees' tips. A spokesperson for Mamdani confirmed that the new administration plans to "take down" the chatbot due to reporting on its flaws by The Markup and THE CITY.

Written for “NYC AI Chatbot Controversy” on 2026-10-21, grounded in this article and the 0 other(s) covering the same event.

Story

📰 NYC AI Chatbot Controversy
Technology · 1 article(s) covering the same event.

Compared with similar articles

This article reads leans right and hedges 13% of its claims. Each row says how that neighbour differs.
Dawn
⚖️ Leans left further left than this 🔴 32% hedged 12 of 37 📰 publisher trust 72
“The two articles report on different incidents: Article A describes AI agents hijacking a German website, while Article B mentions an AI chatbot being criticized by Mayor Zohran Mamdani in New York City”
How this article was measured signals, leaning charts, publisher record, byline, topics and claims

Signals How these are calculated →

Claims extracted
30
sentences that state something as happening or true
Uncertain
13%
4 of 30 hedged ("reportedly", "may", "according to")
Leaning
Leans right
of the writing, not the subject · beta estimate
Publisher signals
94/100
The Markup's corrections and hedging, across everything collected from it. Not a measure of accuracy.
Outlets on this story
1
Technology
Same framing elsewhere
1
articles that frame the event the way this one does
Analyzed 2026-09-05 · how these are computed

How this is being covered How these are calculated →

Article leaning vs. publisher reliability
Source leaning vs. consistency

Publisher

The Markup · 21 article(s) · 0 correction(s) detected
No corrections detected for this publisher. That may mean careful reporting, or simply that nothing has been checked.

Who wrote this

Colin Lecher
10 article(s) here · 1 carrying a prediction
🔮 Doctoralia said it would conduct a detailed review of its online practices but noted it does not monetize patient data.
🔮 The upshot, some believe, could be new forms of regulation, including at the federal level.
🔮 In a press conference this week on New York City’s $12 billion budget gap, Mayor Zohran Mamdani zeroed in on the previous administration’s artificial intelligence chatbot as one of “a number of different things we’re going to pursue for savings.”
🔮 But The Markup and CalMatters’ August story examined how several data brokers used code called the “no-index” tag on pages where consumers could exercise their right to opt out.
🔮 Kevin DeLuca, an assistant professor of political science at Yale University who has studied similar news sites, sometimes called “pink slime” news, told The Markup and CalMatters earlier this year that such sites may not be outright lying.
🔮 A new audit has found that websites across the internet may be failing to abide by California privacy law, ignoring a requirement to not track visitors who set a privacy control.
🔮 Meanwhile, the Defense Department has signed off on the earliest contracts for the “Golden Dome,” a proposal to build a missile-defense system above the United States that may eventually cost hundreds of billions of dollars.
🔮 The “no-index” code tells search engines like Google not to catalog those pages, making it less likely that anyone would see them.
🔮 If you don’t live in California, but have friends or family in California who would be interested in helping us investigate, please share this article with them.
🔮 This story was produced in partnership with Agência Pública as part of a series on how regulatory solutions adopted in Brazil could point the way for the U.S.
Also by Colin Lecher
Nothing else under this byline is closely related to this article, so these are simply their most recent.
All 10 articles by Colin Lecher →
Katie Honan
1 article(s) here · 1 carrying a prediction
🔮 In a press conference this week on New York City’s $12 billion budget gap, Mayor Zohran Mamdani zeroed in on the previous administration’s artificial intelligence chatbot as one of “a number of different things we’re going to pursue for savings.”
The only article under this byline in the corpus.
THE CITY
1 article(s) here · 1 carrying a prediction
🔮 In a press conference this week on New York City’s $12 billion budget gap, Mayor Zohran Mamdani zeroed in on the previous administration’s artificial intelligence chatbot as one of “a number of different things we’re going to pursue for savings.”
The only article under this byline in the corpus.

Topics

Markup Microsoft New York THE CITY The Markup

Subjects

Adams PERSON · 4× Mamdani PERSON · 4× THE CITY ORG · 3× The Markup ORG · 3× Microsoft ORG · 2× New York GPE · 2× CalMatters ORG · 1× Klaxon ORG · 1× Markup ORG · 1× The Scoop PERSON · 1×

Narrative

That, in and of itself, is not something that can bridge this kind of a gap, but it’s an indication of the ways in which money has been spent while refusing to account for the actual costs of what these programs are.” The bot, built using Microsoft’s cloud computing platform, was part of an ambitious overhaul of digital services in New York called MyCity.
framing: assertive · carried by 1 article(s) · first seen 2026-09-05
🔮 In a press conference this week on New York City’s $12 billion budget gap, Mayor Zohran Mamdani zeroed in on the previous administration’s artificial intelligence chatbot as one of “a number of different things we’re going to pursue for savings.”

Claims (30 extracted, 4 hedged)

The Markup, now a part of CalMatters, uses investigative reporting, data analysis, and software engineering to challenge technology to serve the public good. asserted
Markup → use → good
Sign up for Klaxon, a newsletter that delivers our stories and tools directly to your inbox. asserted
that → sign → inbox
This article is co-reported with THE CITY, a non-profit newsroom that serves the people of New York. asserted
that → co → York
In a press conference this week on New York City’s $12 billion budget gap, Mayor Zohran Mamdani zeroed in on the previous administration’s artificial intelligence chatbot as one of “a number of different things we’re going to pursue for savings.” asserted
we → zero → savings
The chatbot, which was released by the Eric Adams administration in fall of 2023, was meant to provide business owners with an accessible way to check city rules and regulations. asserted
which → release → rules
But as first documented by The Markup and THE CITY, the bot provided answers that, if followed, would lead to illegal behavior by businesses, like taking a cut of employees’ tips. asserted
that → document → tips
A spokesperson for the mayor, Dora Pekec, confirmed in a text message that the new administration plans to take down the chatbot. asserted
administration → confirm → chatbot
She said a member of the Mamdani transition team had seen reporting on the bot from The Markup and THE CITY and presented it to the mayor as a possible place to save funds. asserted
member → say → funds
Artificial Intelligence NYC’s AI Chatbot Tells Businesses to Break the Law The Microsoft-powered bot says bosses can take workers’ tips and that landlords can discriminate based on source of income asserted
landlords → tell → income
At the press conference, Mamdani blamed Adams for the budget shortfall, saying he had been handed “a poisoned chalice.” asserted
he → blame → chalice
To close the deficit, he said he would raise taxes on the wealthy and corporations and look “under the hood” of the city’s budget for potential savings. asserted
he → close → savings
When pressed by reporters on what he might cut, he singled out the chatbot. uncertain
he → press → chatbot
“The previous administration had an AI chatbot that was functionally unusable,” Mamdani said. asserted
Mamdani → have → chatbot
“It was costing the administration around half a million dollars. asserted
It → cost → dollars
That, in and of itself, is not something that can bridge this kind of a gap, but it’s an indication of the ways in which money has been spent while refusing to account for the actual costs of what these programs are.” The bot, built using Microsoft’s cloud computing platform, was part of an ambitious overhaul of digital services in New York called MyCity. asserted
bot → bridge → York
The project was meant to streamline access to government but was criticized for relying on outside contractors. asserted
project → mean → contractors
It wasn’t clear how much it cost to maintain the chatbot. asserted
it → cost → chatbot
Just building the bot’s foundations reportedly cost nearly $600,000, close to the figure Mamdani provided. uncertain
Mamdani → build → figure
Pekec said they didn’t yet have a date for taking down the bot. asserted
they → say → bot
Testing by The Markup and THE CITY in 2024 showed that, despite promises from the Adams administration, the chatbot would confidently provide incorrect and potentially harmful information to visitors, even on high-stakes topics. When asked about housing policy, for example, the bot suggested landlords could discriminate against tenants with Section 8 vouchers. uncertain
landlords → show → vouchers
Despite being an intended resource for business owners, the bot didn’t know the minimum wage, and told users it was fine to refuse to accept cash for payment despite a city law to the contrary, enacted in 2020. asserted
it → intend → 2020
After The Markup and THE CITY’s initial report was published, readers continued peppering the bot with sometimes farcical questions, which it continued failing to answer properly. asserted
it → publish → which
The Adams administration defended the bot, saying it would improve over time. asserted
it → defend → time
“We’re identifying what the problems are, we’re gonna fix them, and we’re going to have the best chatbot system on the globe,” Adams said at a press conference. asserted
Adams → identify → conference
“People are going to come and watch what we’re doing in New York City.” asserted
we → go → City
City administrators soon added disclaimers to the bot advising users to “not use its responses as legal or professional advice.” asserted
administrators → add → advice
They also improved some of the bot’s answers, but also appeared to limit the kinds of questions the tool was willing to answer. asserted
tool → improve → questions
Today, the bot advises visitors to “ask an NYC government question only” and cautions that “responses may occasionally produce inaccurate or incomplete content.” uncertain
responses → advise → content
Visitors must agree to accept the bot’s limitations before using it. asserted
Visitors → agree → it
The city has taken down the chatbot, writing on the bot’s web page that its “beta test has ended” and directing visitors to NYC.gov for government information. asserted
test → take → information
💬Give feedback
🕘History 🎫Support