New York City’s AI Chatbot Raises Legal Concerns for Business Owners: What Attorneys Need to Know

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To simplify regulatory navigation for business owners, New York City introduced the MyCity chatbot, an innovative artificial intelligence (AI) tool. However, recent revelations have exposed significant inaccuracies within the chatbot’s responses, prompting concerns among attorneys and law firms regarding its reliability and legal implications.

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Unveiling the MyCity Chatbot

Launched as a pilot program in October, the MyCity chatbot aimed to provide business owners with accurate and actionable information on regulatory matters. Despite initial promises of delivering trustworthy guidance, investigative reports from The Markup have unveiled instances where the chatbot provided erroneous advice, potentially exposing businesses to legal risks.

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Inaccuracies and Legal Ramifications

Among the reported inaccuracies, the chatbot incorrectly advised that employers could deduct portions of their workers’ tips and indicated a lack of regulations mandating employers to notify employees of schedule changes. Such misinformation underscores the serious legal consequences of relying on AI technology without adequate vetting and oversight.

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Acknowledging Deficiencies

New York City Mayor Eric Adams has acknowledged the shortcomings of the chatbot, attributing them to the challenges of deploying emerging technology. While city officials have assured ongoing efforts to address these inaccuracies, legal experts remain concerned about the chatbot’s efficacy and potential liability for businesses.

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Reliance on AI Technology

The MyCity chatbot relies on Microsoft’s Azure AI service, similar to other generative AI platforms prone to producing incomplete or inaccurate responses. This underscores the importance for attorneys and law firms to exercise caution when utilizing AI-driven tools, understanding their limitations and associated legal risks.

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Mitigating Legal Risks

In response to mounting criticisms, the city has updated disclaimers on the MyCity chatbot website, warning users against considering its responses as legal advice. Nevertheless, it remains crucial for business owners to seek guidance from qualified legal professionals when faced with regulatory uncertainties to avoid potential legal pitfalls.

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Advocating for Comprehensive Legal Guidance

Andrew Rigie, director of the NYC Hospitality Alliance, emphasizes the urgency of addressing the chatbot’s deficiencies to prevent businesses from inadvertently violating laws. Attorneys and law firms serving businesses in New York City must ensure clients are aware of the limitations of AI tools and advocate for comprehensive legal guidance to mitigate legal risks.

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Conclusion

As New York City strives to improve the accuracy and reliability of the MyCity chatbot, attorneys and law firms play a vital role in safeguarding their clients’ interests and providing informed legal counsel. By staying informed about advancements in AI technology and exercising prudence in its application, legal professionals can uphold the integrity of the legal profession amid the emergence of AI-driven solutions.