AI Incident Intelligence

NYC MyCity chatbot produced inaccurate business and legal guidance

Investigative testing found New York City's MyCity chatbot giving incorrect answers about housing, employment and business rules, including advice inconsistent with applicable law.

highCity of New YorkhallucinationUnited States

Impact

The incident raised concerns about using generative AI as an authoritative public-service information interface without sufficiently reliable grounding and escalation.

Contributing factors

Generative responses were presented in an official government context while factual/legal verification and confidence gating were insufficient for some questions.

Response

The city added stronger warnings and continued work on improving the beta service.

Assurance lesson

This record should inform control design, testing and monitoring for comparable AI systems. The incident database does not infer that every system using the same provider or model shares the same failure.

Control lessons

Assurance controls implicated by this incident pattern.

These are CRG methodology mappings from the documented incident to controls worth testing in comparable systems. They do not assert that any single control would have prevented the incident.

RISK-04

Impact assessment

Material impacts on users, workers, customers or the public are assessed.

REL-02

Failure-mode testing

Known failure modes including hallucination and instruction failure are explicitly tested.

TRC-04

Source and citation integrity

Research/advice systems preserve source provenance and distinguish evidence classes.

TRC-05

Limitations communication

Known limitations and out-of-scope uses are communicated to operators and users.

Evidence

Source provenance is part of the incident record.

The Markup / THE CITY · confidence 95% · last verified 23 Aug 2026

Open underlying source