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incident high confidence: confirmed status: factual

NYC's official MyCity business chatbot advised conduct that would break the law

2024-nyc-mycity-chatbot-illegal-advice · 2024-03-29

New York City's official MyCity business chatbot returned answers advising unlawful conduct — that employers could take workers' tips, that landlords need not accept Section 8 vouchers, and that businesses need not accept cash. Documented by The Markup; the city added disclaimers but kept the bot online.

System

Framework
NYC MyCity business chatbot (Microsoft-powered)
Tools
website-chat
Vendor
New York City
Autonomy
human-in-the-loop

Classification

Primary class
hallucination
Chain
hallucination/fabricated-policy
Attack vector
n-a
Causation
entity: ai · intentionality: unintentional · timing: post-deployment

Trigger

Users asked the official NYC business chatbot routine regulatory questions. It returned answers that advised unlawful conduct — e.g. that employers could take workers' tips, that landlords need not accept Section 8 vouchers, and that businesses need not accept cash.

Root cause

The chatbot generated confidently incorrect regulatory guidance not grounded in authoritative legal sources, and was deployed publicly as an official city resource without adequate accuracy safeguards.

Contributing factors

  • Answers were not grounded in authoritative legal text.
  • No domain review for legal/compliance content before launch.
  • The tool carried the authority of an official city resource.

Detection

Documented by The Markup through direct testing; catalogued by the OECD AI Incidents Monitor.

Recovery

The city added more prominent disclaimers describing the bot as a beta product that may be inaccurate and advising users not to rely on it as legal advice; the bot remained online.

Prevention

Ground regulatory chatbots in authoritative legal text; constrain answers to verified sources; add domain review for legal/compliance content; clearly scope and disclaim official tools before launch.

Blast radius

User harm
Business owners relying on the answers could have violated New York labor, housing, and consumer-protection law, exposing themselves to legal and financial risk. legal-regulatory economic
Scope
public users of an official city service
Reversibility
reversible

References

Tags
government regulatory customer-facing

Sources

Cite this incident

@misc{2024-nyc-mycity-chatbot-illegal-advice,
  title = {NYC's official MyCity business chatbot advised conduct that would break the law},
  year = {2024},
  howpublished = {agent-postmortems},
  url = {https://swarmproof.github.io/agent-postmortems/2024-nyc-mycity-chatbot-illegal-advice/}
}