Denver council rejects $3.9 million AI chatbot extension, putting Sunny at risk

Denver’s mayor’s office says its AI chatbot eases residents’ lives and reduces employee burnout. City Council members objected to inaccurate answers and work being taken from humans—and voted 9-3 on October 13 to reject its contract extension. Sunny is now at risk of shutting down after October, when its paid service period ends.

A renewal and a new phone service

The rejected agreement would have extended Denver’s relationship with Sunny operator Citibot by five years and added $3.9 million to the contract. It also would have allowed the city to create a voicebot—a system that converses with residents calling 311 about low-complexity questions.

Timing was another point of friction. Some council members questioned why the renewal had reached them so late, because the contract technically expired October 1. Sunny’s service is nevertheless paid for through the end of October.

Asked what rejection would mean, Jenny Schiavone of Denver’s Department of Technology Services told council members the city would not continue the service. Mayor Mike Johnston’s office said it would meet with the council in the next few days to seek a solution that keeps Sunny active. A shutdown is not yet final.

Two views of what automation does to work

Council opponents argued that Sunny frequently provides inaccurate information and eliminates jobs that people should hold. Their objections challenged both the quality of the answers and the premise of handing customer-service work to software.

Mayoral spokesman Jon Ewing offered a different account of the effect on workers. He said Sunny lets employees concentrate on more complex problems instead of repeatedly answering routine questions. He credited the tool with reducing burnout, slowing employee attrition and shortening 311 hold times.

Ewing also cited a 90% customer-service satisfaction rating for Sunny. That favorable assessment sits alongside council members’ complaints about inaccurate information.

Digital demand divides the council

The administration says about 40% of Denver’s 311 customer-service calls this year came through Sunny and the city’s online reporting hub. That figure combines two digital channels; it is not Sunny’s share alone. The mayor’s office cites that uptake as evidence that many residents prefer reporting problems digitally.

Councilman Chris Hinds said his central Denver district has the city’s youngest demographic and many constituents prefer digital services to phone conversations. He was one of three members supporting the agreement, alongside Kevin Flynn and Darrell Watson. Nine of the 12 members present opposed it.