IMPACT: CHATBOT CANCELED – THE CITY – NYC News

Welcome to the forefront of conversational AI as we explore the fascinating world of AI chatbots in our dedicated blog series. Discover the latest advancements, applications, and strategies that propel the evolution of chatbot technology. From enhancing customer interactions to streamlining business processes, these articles delve into the innovative ways artificial intelligence is shaping the landscape of automated conversational agents. Whether you’re a business owner, developer, or simply intrigued by the future of interactive technology, join us on this journey to unravel the transformative power and endless possibilities of AI chatbots.
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January 30, 2026
In January 2026, Zohran Mamdani suggested terminating a city program whose defects had first been revealed by THE CITY and a partner media outlet, The Markup. Looking for ways to close New York’s budget deficit, Mamdani said he would eliminate the city’s malfunctioning AI chatbot
The chatbot, released in 2023 by former Mayor Adams, was meant to help business owners check city rules and regulations.
The Markup and THE CITY reported that the AI-powered bot consistently provided false information and damaging guidance that would lead to illegal business practices, like taking a cut of employees’ tips. It also cost a whopping $600,000 to build.
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The mayoral transition team had seen reporting on the bot from The Markup and THE CITY, and introduced it to Mamdani as a potential area to cut costs.  As of February 5, the city has taken down the chatbot.

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