NYC’s Misinformation-Spreading Chatbot to Be Cut Due to Budget Constraints

New York City’s controversial AI chatbot, MyCity, is set to be discontinued following years of criticism over its inaccurate information, incoming Mayor Zohran Mamdani announced recently.

The Microsoft-powered chatbot, which was launched in 2023 under former Mayor Eric Adams’ administration, was initially created to provide guidance to business owners navigating New York City’s complex regulations. However, an investigation by local media outlets The City and The Markup uncovered numerous instances where the AI provided dangerously incorrect information on critical legal matters.

Among the most troubling examples, MyCity incorrectly informed users that landlords could legally refuse tenants who receive rent assistance—a practice explicitly prohibited under New York City law. In another case, the chatbot falsely claimed that employers were permitted to take employees’ tips, which directly contradicts local labor regulations that protect workers’ gratuities.

Despite these significant errors, the Adams administration chose to keep the system operational, adding only a disclaimer advising users not to rely on the chatbot for legal or professional advice. At the time, Mayor Adams had insisted the city would “identify and fix the issues” and promised to create “the best chatbot system in the world.”

The controversy has now become a political issue as incoming Mayor Mamdani, who took office in January 2026, cited the chatbot as an example of wasteful spending by the previous administration. During a January 28 press conference addressing the city’s budget shortfall, Mamdani specifically highlighted MyCity Chatbot as a program he plans to cut.

“The previous administration implemented a completely useless AI chatbot, which cost the administration about $500,000,” Mamdani stated. “While this alone won’t close the budget gap, it does show how the previous administration spent money while refusing to explain the actual costs of their programs.”

The exact cost of maintaining the chatbot remains unclear, though reports indicate that building the initial infrastructure alone cost approximately $600,000 (about 93 million yen). Mayor Mamdani’s spokesperson, Dora Pekek, confirmed to The City that members of the transition team had identified the chatbot as a potential budget cut after reviewing reports about its performance.

The planned discontinuation of MyCity reflects a growing skepticism about the deployment of AI systems in government services without proper safeguards and oversight. While artificial intelligence has been promoted as a cost-effective way to improve public services, New York City’s experience highlights the potential pitfalls when these systems provide inaccurate information on matters affecting citizens’ rights and livelihoods.

The city has not yet announced a timeline for when the chatbot will be officially removed from the portal site, according to Pekek. The administration is likely weighing how to redirect resources currently allocated to the program as part of broader budget restructuring efforts.

Mayor Mamdani’s decision comes amid his larger fiscal strategy, which includes proposals to raise taxes on wealthy residents and corporations to address the city’s budget deficit. The elimination of the problematic chatbot represents just one component of what appears to be a comprehensive review of spending priorities established under the Adams administration.

The case of MyCity Chatbot serves as a cautionary tale for other municipalities considering AI implementations in public services. As cities across the globe experiment with artificial intelligence solutions, New York’s experience demonstrates the importance of rigorous testing, continuous monitoring, and accountability measures to ensure these systems provide accurate information to the public.