New York City's AI-powered chatbot intended to assist business owners in understanding government regulations has been found to provide misleading information that may encourage illegal activities. After five months of its launch, the chatbot has been observed to offer incomplete and dangerously inaccurate guidance on housing policies, worker rights, and rules for entrepreneurs. An example is its incorrect information that landlords are not obliged to accept tenants with Section 8 vouchers or rental assistance, whereas it is illegal to discriminate based on income source in the city. This finding raises concerns about the chatbot's reliability and underscores the importance of testing and verification before implementing AI-powered systems.

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