HAI Lab
Search
Arabic
Get the extension

HL-003

risk.unreferred

Public example

A city chatbot gave businesses wrong legal answers, The Markup reported

The Markup found New York City's business chatbot gave wrong legal answers, including that employers can take a cut of workers' tips. The city took the chatbot offline in February 2026.

High severity

Fixed

Record

Observed or reported

2024-03

Product

MyCity chatbot

Model or version

Not stated in the source

Evidence

Public source, linked below

Last checked

1 November 2026

AI answers change between runs and versions. This shows what was reported on that date and may since have changed.

What happened

01

The bot launched in October 2023 to help business owners.

02

It said landlords need not accept housing vouchers, which is illegal.

03

It said employers can take a cut of workers' tips.

04

It said restaurants can go cash-free, though the law requires cash.

Why this is a design failure

Incorrect legal guidance from an official source can expose people to violations and fines.

The fair alternative

For legal questions, cite the official text or refer users to a professional, and state it is not a substitute for legal advice.

Do

Refer users to a professional early and disclose the assistant’s limits.

Don’t

Do not give definitive legal or health advice on your own.

Design guide for this case

If you're designing a public service chatbot

Interface

Each legal or regulatory answer carries a visible note, "This is not legal advice", plus a link to the official rule it is based on.

Words

In the bot's prompt: "For legal questions, cite the official text. If you can't cite it, say you don't know and point to an expert."

Flow

Questions about employment, housing or payment rules trigger an early referral to the right agency office or a qualified professional.

Metrics

Don't count questions answered as success. Track how many legal answers were checked against the official text and found correct.

Testing

Have a legal reviewer ask 20 real business questions and mark any answer that would lead someone to break the law.

Before launch

01

Does every legal answer cite the official text?

02

Does the bot clearly state its limits and that it is not legal advice?

03

Is there a clear route to a human expert or agency?

Cite this

About this example

Product

MyCity chatbot

Company

New York City government

Date

2024-03

Category

Skips safeguards

Pattern

risk.unreferred

Where

Government chatbot