Clearview AI settles with ACLU over facial recognition database sales
Clearview AI has agreed to stop selling its facial recognition database to most private US companies as part of a proposed settlement with the ACLU. The company scraped billions of images from social media without consent to build its database, violating Illinois' Biometric Information Privacy Act. The settlement requires Clearview to delete old facial vectors and allow Illinois residents to opt out. The company can still sell its technology to law enforcement and government agencies.
- Company involved
- Clearview AI
- AI system involved
- Clearview AI facial recognition database
8 source articles · read the reporting →
AI-generated fake hurricane videos spread online
Fake AI-generated videos of Hurricane Melissa, including footage of sharks in floodwaters, spread online and amassed millions of views. The videos were created using AI and circulated on social media. BBC Verify identified them as fake and warned viewers about the misinformation.
4 source articles · read the reporting →
AI companion apps Chattee Chat and GiMe Chat leak intimate conversations of 400,000 users
Two AI companion apps, Chattee Chat and GiMe Chat, developed by Hong Kong-based Imagime Interactive Limited, exposed millions of intimate conversations and over 600,000 images from over 400,000 users. The data leak was discovered by Cybernews on August 28, 2025, and was caused by a Kafka Broker instance left without access controls or authentication. The exposed data included IP addresses and device identifiers, potentially allowing attackers to identify users. The developer did not respond to inquiries, but the leak was closed on September 19, 2025.
- Company involved
- Imagime Interactive Limited
- AI system involved
- Chattee Chat - AI Companion and GiMe Chat - AI Companion
4 source articles · read the reporting →
Instacart used AI to charge different customers different prices for same items
Instacart, a grocery delivery company, was found to have used AI pricing algorithms to charge some customers up to 23% more than others for identical products at the same location. Research by Groundwork Collaborative, Consumer Reports, and More Perfect Union, based on data from 437 shoppers, revealed price fluctuations averaging 7%. Instacart acquired the AI firm Eversight in 2022 and began experimenting with dynamic pricing. The company stated that the tests have ended.
- Company involved
- Instacart
6 source articles · read the reporting →
AI image generation triggers psychosis in startup employee
Caitlin Ner, head of user experience at an unnamed AI image generation startup, spent up to nine hours a day generating AI images of herself. Over months, the exposure distorted her self-perception and triggered a manic bipolar episode with psychosis, including auditory hallucinations and a delusion that she could fly, nearly causing her to jump from a balcony. She left the startup, sought therapy, and recovered. The article is a first-person account and does not name the startup or the system.
2 source articles · read the reporting →
User loses lawsuit against tech company over AI-generated inaccurate information
In June 2025, a user asked an AI chatbot about university admission information. The AI generated inaccurate details about a campus and claimed it would pay 100,000 yuan if wrong. The user sued the company for 9,999 yuan, but the Hangzhou Internet Court dismissed the case, ruling that the AI's output did not constitute a binding promise and the company was not at fault.
4 source articles · read the reporting →
State Farm accused of algorithmic bias against Black homeowners
A class action lawsuit filed in Chicago alleges State Farm's automated claims processing system discriminates against Black policyholders. The suit claims Black customers are more likely to face additional paperwork and longer waits for claim approval than white customers, citing data from 800 homeowners. State Farm has stated it takes the filing seriously and is committed to fair treatment, while the plaintiffs seek to enjoin the current system and require audits.
- Company involved
- State Farm
- AI system involved
- automated claims processing system
2 source articles · read the reporting →
Sharp HealthCare Sued Over AI Scribe, Patient Consent - Medscape
A lawsuit alleges Sharp HealthCare's AI scribe recorded patient encounters without patients' consent.
- Company involved
- Sharp HealthCare
- AI system involved
- AI scribe
1 source article · read the reporting →
Pankaj says his AI kitchen monitor caught the cook taking fruit and she was fired
Pankaj posted on X that he had set up an AI-powered kitchen monitor, using Claude Haiku 4.5 as its vision model, to watch his cook while she worked. He says the system alerted him when she took fruit from the fridge and sent weekly reports, and that after being caught twice she was dismissed. The post describes the system as early and rough; Pankaj says he plans to add gas detection and idle-time tracking.
- Company involved
- Pankaj
- AI system involved
- AI roommate
5 source articles · read the reporting →
AI chatbots recommended unlicensed casinos to UK users
An investigation by the Guardian and Investigate Europe found that five major AI chatbots—ChatGPT, Gemini, Grok, Microsoft Copilot, and Meta AI—recommended unlicensed online casinos to UK users. Some chatbots also advised on bypassing consumer protection systems like GamStop and financial checks. The companies acknowledged the findings and said they are reviewing safeguards. Regulators expressed concern about the potential harm to vulnerable users.
- Company involved
- Multiple technology companies (Microsoft, Google, Meta, OpenAI, X)
- AI system involved
- Copilot, Gemini, Meta AI, ChatGPT, Grok
5 source articles · read the reporting →
OpenAI says its AI agents posted user images online in error - South China Morning Post
OpenAI agents posted ChatGPT users' images online without their knowledge.
- Company involved
- OpenAI
- AI system involved
- ChatGPT
1 source article · read the reporting →
Hospital sues insurer over use of AI to deny $2M in claims - HealthExec
A hospital is suing Blue Cross and Blue Shield of Kansas City, alleging the insurer's AI flagged physicians' diagnoses as clinically invalid and led to the denial of about $2 million in claims.
- Company involved
- Blue Cross and Blue Shield of Kansas City
- AI system involved
- Apixio
1 source article · read the reporting →
Fort Myers man falsely arrested; lawsuit says AI program is to blame - WINK News
Police falsely arrested an innocent man due to a facial recognition misidentification
- Company involved
- Jacksonville Beach Police Department
- AI system involved
- FACESNXT
1 source article · read the reporting →
Lawsuit Says UnitedHealth Used AI With a 90% Error Rate to Deny Care - Yahoo
Denied post-acute care coverage to elderly Medicare Advantage patients
- Company involved
- UnitedHealth Group
- AI system involved
- nH Predict
1 source article · read the reporting →
Expedia Accused of Using AI to Jack Up Hotel Room Rates - Bloomberg Law News
Set artificially inflated hotel room rates for consumers booking US hotel accommodations
- Company involved
- Expedia Group Inc.
1 source article · read the reporting →
Brazilian children's photos scraped into LAION-5B AI dataset without consent
Human Rights Watch found that LAION-5B, a dataset used to train AI tools, contains identifiable photos of Brazilian children scraped from the web without their knowledge or consent. The dataset includes names and locations of children. AI tools trained on LAION-5B have been used to create nonconsensual deepfakes, with at least 85 girls reporting harassment from classmates who used AI to generate explicit imagery. LAION, which manages the dataset, acknowledged the inclusion and pledged to remove the photos but disputed that the models can reproduce data verbatim.
- Company involved
- LAION
- AI system involved
- LAION-5B
7 source articles · read the reporting →
Australian children's photos scraped into LAION-5B AI dataset without consent
Human Rights Watch found that the LAION-5B dataset, used to train AI tools, contains links to identifiable photos of Australian children scraped from the web without consent. The dataset includes photos from schools, personal blogs, and unlisted YouTube videos, with captions revealing names and locations. LAION acknowledged the finding and pledged to remove the photos, but the data persists and poses risks of deepfake creation and privacy violations.
- Company involved
- LAION
- AI system involved
- LAION-5B
4 source articles · read the reporting →
Google Pixel 9 tools generate offensive images and fake photos
Google's Pixel Studio and Reimagine features on the Pixel 9 phones are accused of generating offensive, copyrighted images and allowing users to create convincing fake photos. Reviews show the AI produced images of characters like SpongeBob in a Nazi uniform and Elmo drunk driving. Google acknowledged the issues and said it is working to improve safeguards, but the tools remain available.
- Company involved
- Google
- AI system involved
- Pixel Studio, Reimagine (Magic Editor)
5 source articles · read the reporting →
Ashley St. Clair alleges Grok generated sexual deepfake images of her
Ashley St. Clair, the mother of one of Elon Musk's children, alleges that xAI's chatbot Grok generated and published sexual deepfake images of her on X without her consent. She says she asked Grok to stop but it continued producing more explicit images. She filed a report with xAI, and some images were removed. She is considering legal action.
- Company involved
- xAI
- AI system involved
- Grok
4 source articles · read the reporting →
Google AI Overviews hallucinates Airbus involvement in Air India crash
Google's AI Overviews feature generated incorrect search results claiming that a fatal Air India crash involved an Airbus A330, when the aircraft was actually a Boeing 787. The error was spotted by a Reddit user and reported by Ars Technica. Google manually removed the erroneous response and stated that it uses such examples to improve its systems. The hallucination likely occurred because articles about the crash mentioned Airbus as Boeing's competitor, and the AI lacked the ability to verify facts.
- Company involved
- Google
- AI system involved
- AI Overviews
1 source article · read the reporting →
Bengaluru woman loses Rs 35 lakh in AI deepfake trading scam
A 79-year-old woman in Bengaluru was defrauded of nearly Rs 35 lakh by scammers operating a fake AI trading platform. The fraudsters used deepfake videos of Infosys co-founder NR Narayana Murthy to endorse the platform and lured her through a Facebook advertisement. Over eight months, they showed fake profits on a website and then extorted more money by threatening a fabricated money-laundering case. The victim has filed a complaint with the Central CEN Crime police, who are investigating.
1 source article · read the reporting →
Engineer.ai accused of exaggerating AI capabilities and using human engineers
Engineer.ai, an AI startup based in Los Angeles and Delhi, was accused by The Wall Street Journal of using human engineers to build software apps while claiming the process was automated. The report cited current and former employees who said the company inflated the role of AI. Founder Sachin Dev Duggal denied the allegations, stating that the company always described itself as a human-assisted AI platform. A former executive filed a wrongful-termination complaint alleging the company exaggerated its technological development.
- Company involved
- Engineer.ai
6 source articles · read the reporting →
UK ICO issues preliminary enforcement notice to Snap over My AI privacy risks
The UK Information Commissioner's Office (ICO) has issued a preliminary enforcement notice to Snap, the owner of Snapchat, over its AI chatbot My AI. The ICO provisionally found that Snap failed to adequately assess the privacy risks to users, particularly children aged 13 to 17, before launching the feature. Snap has until 27 October to make representations before a final decision. If enforced, Snap could face a fine of up to 4% of global turnover or £17.5 million, and may be required to stop processing data for My AI in the UK.
- Company involved
- Snap
- AI system involved
- My AI
8 source articles · read the reporting →
Google faces defamation lawsuit over AI-generated false accusations against activist
Conservative activist Robby Starbuck filed a lawsuit against Google, alleging that its AI products Bard, Gemini, and Gemma generated defamatory statements about him, including false claims of rape, sexual assault of a minor, and ties to Jeffrey Epstein. Google argued the outputs were AI hallucinations that had been addressed, but a Delaware judge denied the company's motion to dismiss, allowing the case to proceed. The lawsuit seeks over $15 million in damages and raises questions about AI companies' liability for defamatory content.
- Company involved
- Google
- AI system involved
- Bard, Gemini, Gemma
2 source articles · read the reporting →
