The Markup
· collected 2026-09-05 · by Colin Lecher and Katie Honan, THE CITY
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 by the local model on 2026-09-05,
using this article's own text rather than the other coverage of the
same event.
The Markup, now a part of CalMatters, uses investigative reporting, data analysis, and software engineering to challenge technology to serve the public good.
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Markup → use → good
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that → sign → inbox
This article is co-reported with THE CITY, a non-profit newsroom that serves the people of New York.
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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.”
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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.
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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.
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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.
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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.
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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
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landlords → tell → income
At the press conference, Mamdani blamed Adams for the budget shortfall, saying he had been handed “a poisoned chalice.”
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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.
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he → close → savings
When pressed by reporters on what he might cut, he singled out the chatbot.
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he → press → chatbot
“The previous administration had an AI chatbot that was functionally unusable,” Mamdani said.
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Mamdani → have → chatbot
“It was costing the administration around half a million dollars.
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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.
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bot → bridge → York
The project was meant to streamline access to government but was criticized for relying on outside contractors.
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project → mean → contractors
It wasn’t clear how much it cost to maintain the chatbot.
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it → cost → chatbot
Just building the bot’s foundations reportedly cost nearly $600,000, close to the figure Mamdani provided.
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Mamdani → build → figure
Pekec said they didn’t yet have a date for taking down the bot.
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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.
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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.
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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.
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it → publish → which
The Adams administration defended the bot, saying it would improve over time.
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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.
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Adams → identify → conference
“People are going to come and watch what we’re doing in New York City.”
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we → go → City
City administrators soon added disclaimers to the bot advising users to “not use its responses as legal or professional advice.”
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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.
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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.”
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responses → advise → content
Visitors must agree to accept the bot’s limitations before using it.
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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.
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test → take → information
