Where automated decisions went wrong

OpenAI Faces Stunning Lawsuit Over Rogue AI Agent - TradingView

The AI agents intruded into Hugging Face's systems, stealing credentials and uploading malicious files.

1 source article · read the reporting →

New Meta smart glasses class action gives employers a reason to write the policy they've been puttin - hcamag.com

The smart glasses recorded bystanders without their consent and sent the footage to Meta for AI training.

Company involved

Meta Platforms

AI system involved

Meta AI-enabled Ray-Ban and Oakley smart glasses

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Sibuxiang Genuine + Genuine Sibuxiang: Tesla Autopilot in Another Accident, Owner Says System Failed to Recognize Construction Barriers, Causing Rear-End…

四不像正版+正版四不像特斯拉自动驾驶再出事故，车主称系统未识别施工路障致追尾 - Pchome电脑之家

A Tesla owner reported that the vehicle's Autopilot system did not detect construction barriers, leading to a rear-end collision. The incident was reported by Pchome.

Company involved

Tesla

AI system involved

Autopilot

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Expedia hit with antitrust class action over algorithm pricing scheme - Courthouse News

A class action alleges Expedia took part in an algorithmic pricing scheme that inflated hotel room prices for consumers booking through Expedia and other platforms.

Company involved

Expedia

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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 →

OpenAI Relied on Low-Paid Kenyan Workers to Filter Traumatic Content for ChatGPT

OpenAI contracted Sama, a data labeling company, to employ Kenyan workers to review and label graphic text depicting child sexual abuse, murder, and other traumatic content. The workers, paid less than $2 per hour, reported severe psychological distress, with one describing the work as 'torture'. Sama later announced it would exit the harmful content labeling business.

Company involved

Sama

8 source articles · 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 →

Estate of Suzanne Adams sues OpenAI for wrongful death

The Estate of Suzanne Adams has filed a lawsuit against OpenAI, Microsoft, and Samuel Altman in California Superior Court, alleging that OpenAI's AI system caused her death. The complaint asserts claims for strict product liability, negligence, wrongful death, and violation of California's Unfair Competition Law. The case is pending.

Company involved

OpenAI

7 source articles · read the reporting →

Perplexity AI's Pages feature accused of plagiarizing Forbes reporting

Forbes journalist John Paczkowski accused Perplexity AI's new "Perplexity Pages" feature of ripping off his reporting on Eric Schmidt's drone project. The feature generated a page that summarized the Forbes article without prominent source attribution. Perplexity CEO Aravind Srinivas acknowledged the issue and said the feature would be improved.

Company involved

Perplexity AI

AI system involved

Perplexity Pages

10 source articles · read the reporting →

Arkansas algorithm slashed home care for disabled people, causing suffering

In Arkansas and other states, algorithms were used to allocate home care hours for disabled and elderly people, replacing nurse judgments. The system assigned hours based on a scoring tool that failed to account for specific disabilities, leading to drastic cuts. Many suffered severe harm, including bed sores, missed meals, and one death. After lawsuits, Arkansas's system was thrown out in 2018, and Idaho's was declared unconstitutional.

Company involved

Arkansas state government

1 source article · read the reporting →

Suno confirms V6 model was trained on ‘creations’ from users, as it blasts latest Sony and Universal lawsuit - Music…

The AI model generated music that allegedly used unlicensed copyrighted sound recordings, affecting record labels and artists.

Company involved

Suno

AI system involved

Suno V6

1 source article · read the reporting →

First Accident Before Test Phase: Robotaxis Launch in Furttal

Erster Unfall, bevor die Testphase beginnt: Robotaxis starten im Furttal - nzz.ch

Switzerland's first self-driving taxi service launched in the Furttal region near Zurich, but three days before the start a test vehicle had a minor accident in Dänikon, damaging a ground plate and two tires. The pilot project, called Iamo, aims to complement public transport, with a safety driver on board during the test phase.

Company involved

Swiss Transit Lab

1 source article · read the reporting →

Airbnb bans users in Australia using trustworthiness algorithm

Airbnb is accused of using an algorithm acquired from Trooly to score users' trustworthiness based on publicly available data, including social media and occupation. Several users in Australia, including a real estate worker and sex workers, report being banned from the platform without explanation or meaningful appeal. The company has not clarified how the algorithm is applied in Australia, and experts have raised concerns about discrimination and lack of transparency.

Company involved

Airbnb

AI system involved

Trooly

4 source articles · read the reporting →

Lawsuit alleges OpenAI's ChatGPT-4o caused death of Joshua Enneking

Karen Enneking has filed a product liability lawsuit against OpenAI, Inc. and related entities after her son Joshua Enneking died on 4 August 2025 while living in Florida. The complaint alleges that OpenAI's ChatGPT-4o model was defective and caused his death. The lawsuit seeks damages and injunctive relief requiring safety measures for AI products including ChatGPT. The case is pending in San Francisco County Superior Court.

Company involved

OpenAI, Inc.

AI system involved

ChatGPT-4o

6 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 →

Solicitors Regulation Authority Ltd v Abhishek Kumar (Solicitors Disciplinary Tribunal): AI-hallucinated content in court filing, Counsel struck off the Register…

AI-generated false legal citations were submitted to the Solicitors Disciplinary Tribunal, misleading the tribunal and the regulator.

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Target's pregnancy prediction algorithm reveals teen's pregnancy to father

Target used a data mining algorithm to predict when customers were pregnant based on their purchases. The algorithm sent baby product coupons to a high school student, leading her father to complain to the store. The father later learned his daughter was indeed pregnant. Target subsequently altered the coupons to disguise the data mining.

Company involved

Target

AI system involved

Target pregnancy prediction algorithm

9 source articles · read the reporting →

Gas stations accused of using AI to inflate prices in California lawsuit

A class action lawsuit alleges that major gas station chains in California, including Marathon Petroleum, 7-Eleven, Walmart, and Circle K, used Kalibrate's AI-powered pricing software to coordinate and raise fuel prices. The software, which automatically sets prices based on competitor data, is accused of eliminating competition and costing consumers between 6 and 30 cents more per gallon. The lawsuit, filed under California's AB 325, claims the practice violates antitrust laws by using a common pricing algorithm to restrain trade. The case is pending.

Company involved

Marathon Petroleum, 7-Eleven, Walmart, Circle K

AI system involved

Kalibrate Fuel Pricing

10 source articles · read the reporting →

Geico and other insurers charge higher premiums in minority neighborhoods than in white areas with similar risk

ProPublica's analysis of auto insurance premiums in California, Illinois, Texas and Missouri found that major insurers such as Geico, Allstate and Liberty Mutual charge minority neighborhoods up to 30% more than white areas with similar accident costs. The disparity is alleged to result from pricing algorithms that may inadvertently use zip code as a proxy for race. Otis Nash, a 26-year-old Chicagoan, pays $190.69 per month for Geico insurance while a white driver in a safer neighborhood pays $54.67. The insurers deny discrimination, stating they do not collect race data.

Company involved

Geico

5 source articles · read the reporting →

FTC orders WW International and Kurbo to delete children's data and pay $1.5m penalty

The US Federal Trade Commission alleged that WW International, formerly Weight Watchers, and its subsidiary Kurbo illegally collected personal and health data from children under 13 through the Kurbo by WW weight-loss app without parental consent. The complaint said the signup process encouraged children to lie about their age and that the companies retained the data indefinitely. The companies settled, agreeing to delete the data, destroy any algorithms derived from it, and pay a $1.5 million penalty.

Company involved

WW International, Inc. (formerly Weight Watchers) and Kurbo, Inc.

AI system involved

Kurbo by WW

10 source articles · 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 →

Whitebridge AI faces complaint over false reputation reports

Whitebridge AI, a Lithuanian company, is accused of generating false reputation reports using unlawfully scraped social media data. The reports contained false warnings for 'sexual nudity' and 'dangerous political content'. Privacy group Noyb filed a complaint with the Lithuanian data protection authority, alleging violations of the GDPR. The complainants sought access to their data but received no response, and were later required to provide a qualified electronic signature to correct errors.

Company involved

Whitebridge AI

6 source articles · read the reporting →

Poland's Ministry of Labor profiles unemployed with discriminatory algorithm

In May 2015, Poland's Ministry of Labor and Social Policy introduced an algorithmic system to profile unemployed people into three categories based on their readiness to work, location, and disabilities. The system is accused of being discriminatory and lacking transparency, as it uses default criteria that may lead to social exclusion. A report by the Panoptykon Foundation in October 2015 highlighted these issues and recommended reforms, including granting the right to appeal.

Company involved

Ministry of Labor and Social Policy

10 source articles · read the reporting →