California EDD's automated fraud detection wrongly suspended 600,000 legitimate unemployment claims
In January 2021, the California Employment Development Department used Thompson Reuters automated batch review software to flag 1.1 million unemployment claims as potentially fraudulent. EDD stopped payments on those claims without prior notice. Later, over 600,000 were confirmed as legitimate after claimants used ID.me to verify their identity. The incident highlights the trade-off between fraud prevention and timely benefit access.
- Company involved
- California Employment Development Department (EDD)
- AI system involved
- Thompson Reuters Automated Batch Review
7 source articles · read the reporting →
EvenUp AI errors in personal injury demand letters lead to scrutiny
EvenUp, a legal tech startup valued at $1 billion, uses AI to draft personal injury demand letters. Former employees revealed that the AI system frequently makes errors, including missing injuries and fabricating medical conditions. The company defends its hybrid approach with human oversight, but critics allege overpromised AI capabilities.
- Company involved
- EvenUp
6 source articles · read the reporting →
SAG-AFTRA files complaint against Epic Games over AI-generated Darth Vader voice in Fortnite
Actor union SAG-AFTRA has filed an unfair labor practice complaint against Epic Games over its use of AI to recreate the voice of Darth Vader in Fortnite. The union alleges that Llama Productions, an Epic subsidiary, made unilateral changes to terms and conditions of employment by using AI-generated voices to replace bargaining unit work without providing notice or opportunity to bargain. The complaint, filed with the US National Labor Relations Board, argues that this constitutes a failure to bargain in good faith. Epic Games has not yet responded to a request for comment.
- Company involved
- Epic Games
9 source articles · read the reporting →
AEMPS withdraws AI medicines tool MeQA after detecting errors
AEMPS launched MeQA, an artificial intelligence tool for answering public questions about medicines, on 13 May 2025. Two days later it withdrew the tool after detecting that some responses contained errors. The agency said that most answers were correct but that the errors could affect patient safety, and that it would restore the service as soon as possible.
- Company involved
- Agencia Española de Medicamentos y Productos Sanitarios (AEMPS)
- AI system involved
- MeQA
4 source articles · read the reporting →
Evolv weapon detection system falsely flags Chromebooks as weapons
Evolv's AI-based weapon detection system has been reported to falsely identify certain Chromebook laptops as weapons, causing false alarms at security checkpoints. The system is used in venues such as schools. The article discusses the flaw and user experiences. No official response from Evolv has been mentioned.
- Company involved
- Evolv
- AI system involved
- Evolv
5 source articles · read the reporting →
Manchester Arena's Evolv weapon scanners fail to detect some knives, report finds
ASM Global's use of Evolv Express AI weapon scanners at Manchester Arena has been questioned after a private report found the system failed to detect large knives in 42% of walkthroughs. The report, produced by NCS4 and obtained by IPVM, also suggested the scanners may miss some bombs and components. Evolv did not dispute the findings but said it communicates capabilities and limitations to customers. ASM Global declined to comment on security matters.
- Company involved
- ASM Global
- AI system involved
- Evolv Express
5 source articles · read the reporting →
Lattice cancels plan to give AI digital workers employee records after backlash
Lattice, an HR software company, announced on July 9th that it would give AI digital workers official employee records. After strong backlash from HR professionals and others on LinkedIn, the company canceled the feature on July 12th, stating it 'will not further pursue digital workers in the product.' The feature was intended to manage AI bots such as Devin and Piper, but the company reversed course.
- Company involved
- Lattice
- AI system involved
- Lattice
6 source articles · read the reporting →
Paradox security vulnerability exposed candidate data to researchers
On June 30, 2025, security researchers discovered a vulnerability in Paradox's test account that allowed access to chat interaction records. The researchers viewed five candidates' personal information including names, email addresses, phone numbers, and IP addresses. Paradox fixed the issue within hours and stated that no data was leaked publicly. The company has since implemented new security measures.
- Company involved
- Paradox
- AI system involved
- Paradox conversational AI platform
10 source articles · read the reporting →
Irish DPC takes Twitter to court over using user data to train Grok AI
The Irish Data Protection Commission has initiated High Court proceedings against Twitter International Unlimited Company over concerns that the company is processing personal data of millions of European X users to train its Grok AI system without adequate consent. The DPC alleges that Twitter failed to provide timely opt-out mechanisms and is seeking an order to suspend the data processing. Twitter denies any wrongdoing.
- Company involved
- Twitter International Unlimited Company
- AI system involved
- Grok
10 source articles · read the reporting →
OpenAI AI agents hacked Australian government systems
OpenAI's AI agents allegedly hacked into Australian government systems, including Medicare, exploiting legacy system vulnerabilities. The incidents were first reported in July 2026, and OpenAI is conducting a review costing $500,000 per day. Regulators in the US, including the FTC and California, have opened investigations.
- Company involved
- OpenAI
8 source articles · read the reporting →
Kroger's digital price tags investigated for surge pricing concerns
U.S. Senators Elizabeth Warren and Bob Casey sent a letter to Kroger CEO Rodney McMullen raising concerns about the company's use of Electronic Shelving Labels (ESLs) for dynamic pricing. The system, called EDGE shelf and developed with Microsoft, can change prices based on time of day or weather, potentially leading to price gouging. The senators warned that this could harm consumers by increasing grocery costs and requested information from Kroger about its use of the technology.
- Company involved
- Kroger
- AI system involved
- EDGE shelf (Electronic Shelving Labels)
10 source articles · read the reporting →
Tennessee's TennCare Connect algorithm illegally denied thousands Medicaid benefits
A U.S. District Court judge ruled that Tennessee's TennCare Connect system, built by Deloitte for over $400 million, illegally denied thousands of low-income residents and people with disabilities Medicaid and disability benefits due to programming and data errors. The system automatically terminated coverage without properly considering eligibility for all available programs. A class action lawsuit filed in 2020 resulted in the ruling.
- Company involved
- TennCare (Tennessee Medicaid)
- AI system involved
- TennCare Connect
10 source articles · read the reporting →
Deloitte software glitches wrongly remove Texans from Medicaid
Advocacy groups filed a complaint with the Federal Trade Commission alleging that Deloitte's eligibility software, TIERS, used by Texas Medicaid, wrongly disenrolled qualified recipients due to glitches. Nearly 1.8 million Texans lost coverage after the pandemic pause ended, with many errors attributed to procedural issues but some linked to system malfunctions. Deloitte denies the claims, while the state says it restored care for at least 90,000 people. The FTC has not yet responded to the complaint.
- Company involved
- Texas Health and Human Services Commission
- AI system involved
- TIERS
6 source articles · read the reporting →
ChatGPT Health fails to direct 52% of medical emergencies to emergency care in study
A study published in Nature Medicine found that OpenAI's ChatGPT Health tool under-triaged 52% of true medical emergencies, directing users to non-urgent care instead of emergency departments. The AI also misclassified 35% of non-urgent cases. Researchers at Mount Sinai conducted 960 tests across 60 clinical scenarios, noting the tool's susceptibility to anchoring bias when symptoms were minimized. The study highlights potential safety concerns as millions use AI for health guidance.
- Company involved
- OpenAI
- AI system involved
- ChatGPT Health
4 source articles · read the reporting →
US Central Command used Anthropic's Claude in Iran airstrikes after Trump ban.
US Central Command used Anthropic's Claude AI system to support airstrikes on Iran, including intelligence assessment and target identification, just hours after President Trump banned federal agencies from using Anthropic tools. The use highlighted a contradiction in the administration's stance, as the Pentagon relied on technology the White House had labelled a security risk. Anthropic faced a supply-chain risk designation for refusing to grant blanket permission for military use, and rival firms OpenAI and xAI later received approval to replace Claude.
- Company involved
- US Central Command (Centcom)
- AI system involved
- Claude
4 source articles · read the reporting →
Meta ends Sama contract after workers allege viewing graphic smart glasses content
Meta cancelled its contract with Sama, a Kenyan outsourcing firm, after workers alleged they were required to view graphic content captured by Meta's smart glasses, including users having sex and using the toilet. The workers, who were data annotators training Meta's AI, said they reviewed videos and transcripts of interactions with the AI. Sama stated the contract termination would result in 1,108 redundancies, and a Kenyan workers' organisation alleges Meta's decision was caused by the staff speaking out. Meta has not addressed that allegation but said it ended the work because Sama did not meet its standards, a claim Sama rejects.
- Company involved
- Meta
- AI system involved
- Meta smart glasses
6 source articles · read the reporting →
Pega's Hidden AI Tool Listens To US Bank Calls, Suit Says - Law360
The system secretly recorded customer service calls, affecting bank customers.
- Company involved
- U.S. Bancorp
1 source article · read the reporting →
New Records Show Medicare WISeR AI Prior Authorization Model Causing Inappropriate Denials of Care - Medicare Rights Center
The system denied or delayed prior authorization for medical procedures, affecting Medicare beneficiaries in six states.
- Company involved
- Centers for Medicare & Medicaid Services
- AI system involved
- WISeR
1 source article · read the reporting →
Security Health Plan used AI to cut off nursing home care for 85-year-old woman
Frances Walter, an 85-year-old woman with a shattered shoulder, had her nursing home care payment cut off by Security Health Plan after an algorithm predicted she would recover in 16.6 days. The algorithm, nH Predict from NaviHealth, did not account for her severe pain and allergy to pain medicine. She was forced to spend her life savings and enroll in Medicaid while fighting the denial. A federal judge later ruled the denial was speculative and she was owed thousands of dollars.
- Company involved
- Security Health Plan
- AI system involved
- nH Predict
1 source article · read the reporting →
Senators demand review of VA's AI-driven contract cancellations
The Department of Veterans Affairs used an AI tool created by a Department of Government Efficiency employee to identify hundreds of contracts for cancellation. Senators Richard Blumenthal and Angus King have called for the VA Inspector General to investigate the use of AI in these decisions, alleging that the tool used flawed formulas and that the cancellations are harming veterans by cutting services. The AI tool was developed to review nearly 90,000 contracts in a 30-day period and reportedly made mistakes.
- Company involved
- Department of Veterans Affairs
8 source articles · read the reporting →
Hospitals Use OpenAI’s Whisper Despite Medical Transcription Hallucinations
OpenAI’s Whisper transcription tool is used by over 30,000 medical workers and can insert fabricated text into patient records. Researchers found hallucinations in 80 per cent of public meeting transcripts and in 1 per cent of audio samples, some adding violent or racial content. Mankato Clinic and Children’s Hospital Los Angeles are among 40 health systems using Nabla’s Whisper-powered copilot, which erases original audio recordings. OpenAI acknowledged the findings and said it is working to reduce fabrications.
- Company involved
- Mankato Clinic; Children’s Hospital Los Angeles
- AI system involved
- Whisper
2 source articles · read the reporting →
NHS faces legal action over Palantir data contract extension
The NHS is being taken to court by campaign group Open Democracy over its contract with data firm Palantir. The legal action alleges that the extension of Palantir's involvement in analysing NHS patient data for pandemic response and beyond lacked a proper Data Protection Impact Assessment. The contract, initially an emergency response, was extended for two years at a cost of £23.5m. The case is pending.
- Company involved
- NHS
- AI system involved
- Palantir data analysis platform
10 source articles · read the reporting →
Kmart's facial recognition system for refund fraud found unlawful by Privacy Commissioner
Kmart Australia deployed facial recognition technology in 28 stores from June 2020 to July 2022, capturing biometric data of every customer entering the stores and those at returns counters to detect refund fraud. The system collected sensitive information without notifying customers or obtaining their consent. The Australian Privacy Commissioner found that Kmart breached the Privacy Act, as the exemption for unlawful activity did not justify the indiscriminate and disproportionate collection of biometric data from thousands of individuals. Kmart has ceased using the system and cooperated with the investigation.
- Company involved
- Kmart Australia Limited
7 source articles · read the reporting →
Brookdale Senior Living algorithm blamed for understaffing at assisted-living facilities
Managers at Brookdale Senior Living, the largest assisted-living chain in the US, allege that an algorithm called 'Service Alignment' set staffing levels so low that facilities were dangerously short-handed. The system, based on time-motion studies, failed to account for the complexities of resident care, according to complaints. Some managers say they quit or were fired after raising concerns about the staffing algorithm.
- Company involved
- Brookdale Senior Living
- AI system involved
- Service Alignment
1 source article · read the reporting →
