MEDVi deployed an AI chatbot to handle all customer service for a claimed patient base of 500,000+ people — a function performed by zero dedicated human support staff. The chatbot was documented giving patients incorrect drug prices and inventing product lines that MEDVi does not offer. When patients demanded a human, calls were forwarded to the founder's personal phone.

The New York Times reported that MEDVi's AI chatbot fabricated drug prices on multiple occasions — errors the founder chose to honor to avoid customer complaints — and promoted a hair-loss treatment product line that did not exist. With only two employees at the company, the chatbot served as the primary and effectively only point of contact for a large patient base. When customers insisted on speaking to a human representative, calls were redirected to founder Matthew Gallagher personally; he reported answering more than 1,000 such calls. MEDVi's website advertised the chatbot as providing unlimited, 24/7 support. These AI hallucination errors occurred in a healthcare context involving prescription medications.