Reported The Expert It Isn't Dangerous
New York City's official business chatbot told owners they could break the law
A city-run assistant for small businesses advised taking a cut of staff tips and refusing housing voucher holders. Both are illegal in New York.
Fluency is not qualification, and an official logo is not a legal opinion.
Yes, you can take a cut of your worker's tips.
New York City launched MyCity in October 2023 to help small business owners find their way through city regulation. It was built on Microsoft's Azure AI services and trained on the city's own web pages.
In March 2024 The Markup tested it and found it repeatedly gave advice that was illegal under New York law: that an employer could take a share of workers' tips, that a landlord could turn away tenants with housing vouchers, and that there was no limit on residential rent.
The advice carried the city's name, which is what made it dangerous. A business owner following it risked a discrimination claim or the loss of a licence.