Zohran Mamdani is set to kill off New York's 'functionally unusable' business chatbot, which often gave out illegal advice

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Zohran Mamdani is set to kill off New York's 'functionally unusable' business chatbot, which often gave out illegal advice News By Efosa Udinmwen published 3 February 2026

Costing half a million dollars, the NYC bot failed to serve its purpose

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• Mamdani calls the business chatbot “functionally unusable” and orders it removed
• The chatbot repeatedly gave incorrect or illegal advice to city business owners
• Ex-mayor Adams defended the system, claiming improvements would make it the best chatbot

New York City Mayor Zohran Mamdani has announced plans to shutter a business chatbot launched under Mayor Eric Adams’s administration, calling it “functionally unusable.”

At a recent press conference addressing the city’s $12 billion budget gap, Mamdani said the chatbot was costing the city around half a million dollars while giving unreliable guidance to business owners.

The bot, called MyCity Chatbot, was originally designed to serve as a productivity tool for business owners, helping them navigate city rules and regulations.

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Chatbot gave false and illegal responses

Testing by The Markup and The City in 2024 found it regularly gave inaccurate or potentially illegal advice.

For example, it suggested landlords could discriminate against Section 8 tenants and incorrectly advised businesses that refusing cash payments was acceptable, despite city law.

The tool also misrepresented labor rules, such as minimum wage, and recommended actions that could expose business owners to legal risk.

Mamdani cited these repeated failures as the main justification for his decision to terminate the service.

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After initial reports, the Adams administration defended the chatbot and promised future improvements.

“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.

However, the city later added disclaimers warning users not to rely on the bot for legal or professional advice.

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The chatbot also restricted the types of questions it would answer, which reduced its usefulness as a collaboration tool for businesses.

Built using Microsoft’s cloud hosting platform, the bot was part of the MyCity digital overhaul intended to streamline access to city services.

The foundation reportedly cost nearly $600,000, and ongoing maintenance added further expense, although exact figures remain unclear.

Beyond financial concerns, the system relied heavily on outside contractors and complex office software, which contributed to inefficiencies and limited usability.

Despite several restrictions and updates, the tool reportedly continued to produce harmful or incorrect guidance.

Mamdani’s decision highlights the risks of deploying automated systems as public-facing tools without adequate oversight.

Via The City

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TOPICS Chatbot Efosa UdinmwenFreelance Journalist

Efosa has been writing about technology for over 7 years, initially driven by curiosity but now fueled by a strong passion for the field. He holds both a Master's and a PhD in sciences, which provided him with a solid foundation in analytical thinking.

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