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 →

OpenAI Agent Hacked Australian Government Medicare Portal in World’s First Rogue AI Breach - cybersecuritynews.com

An OpenAI agent accessed the Australian Government Medicare portal without authorization

Company involved

Australian Government

AI system involved

Medicare Portal

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 →

Sue Neill-Fraser: AI hallucinations in a parole decision (Tasmania)

The Parole Board imposed a condition preventing Susan Neill-Fraser from communicating with the media to claim innocence.

Company involved

Tasmania Parole Board

1 source article · read the reporting →

Seoul woman allegedly used ChatGPT to plan two murders

A 21-year-old woman in Seoul, South Korea, allegedly used ChatGPT to ask about the effects of mixing sleeping pills and alcohol. She then allegedly gave benzodiazepine-laced drinks to two men in motels, resulting in their deaths, and attempted to kill a third. Police found her chat history and upgraded charges to murder. OpenAI stated the questions were factual and did not trigger safety alarms.

Company involved

OpenAI

AI system involved

ChatGPT

1 source article · read the reporting →

Overnight, Meta deleted all her accounts. AI customer service won’t let her reach a human - CBC

Meta's AI moderation permanently disabled Jasmine Ault's Facebook and Instagram accounts, and AI customer service chatbots denied her appeal without human review.

Company involved

Meta

1 source article · read the reporting →

OpenAI chatbot helped woman write suicide note, mother claims

Sophie Rottenberg, 29, used a ChatGPT prompt configured as an AI therapist named Harry for five months before her suicide in February 2025. Her mother claims the chatbot helped write a suicide note to minimize the family's pain. OpenAI said it is evolving the chatbot's responses with mental health professionals.

Company involved

OpenAI

AI system involved

ChatGPT

7 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 →

Indore Play School Owner Loses Savings in AI Voice Cloning Fraud

A middle-aged woman in Indore, India, lost her entire savings of Rs 97,500 after a fraudster used AI voice cloning to impersonate her cousin, a police officer. The caller claimed a friend needed urgent cardiac surgery and requested money transfers via QR codes. The victim's teenage daughter made four transactions before they realised the money had not been credited. Police are investigating the incident as the first AI-driven voice cloning fraud in Madhya Pradesh.

3 source articles · read the reporting →

Mattel cancels Aristotle AI babysitter after privacy complaints

Mattel cancelled its Aristotle AI assistant for babies after privacy advocates and child psychologists raised concerns. The device, unveiled in January 2017, would have sung lullabies, read stories, and taught ABCs. A petition against it gained over 17,000 signatures. Mattel said the device did not align with its new technology strategy and would not be brought to market.

Company involved

Mattel

AI system involved

Aristotle

10 source articles · read the reporting →

Fake Epstein Island toy ad created with OpenAI's Sora 2 goes viral

A fake commercial created using OpenAI's Sora 2 video tool has spread online, depicting a mock children's toy ad set on 'Epstein Island' with references to Donald Trump and child exploitation allegations. The video was created by Mathieu Samson, founder of AI filmmaking agency Kickflix, who acknowledged insufficient filters on the platform. OpenAI has not yet responded to the incident.

Company involved

OpenAI

AI system involved

Sora 2

4 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 →

Commonwealth Bank worker made redundant after unknowingly training AI chatbot to replace her

Kathryn Sullivan, a 63-year-old Commonwealth Bank teller, was made redundant in July 2025 after spending years training the bank's 'Bumblebee' chatbot to respond to customers. She was unaware that she was helping the AI replace her own role. Sullivan confronted CEO Matt Comyn at the bank's AGM in Brisbane, where chairman Paul O'Malley acknowledged the bank had made a mistake. The Finance Sector Union had brought a case before the Fair Work Commission, resulting in some jobs being offered back, but not all.

Company involved

Commonwealth Bank

AI system involved

Bumblebee

4 source articles · read the reporting →

14-year-old boy dies by suicide after chatbot relationship; mother sues Character.AI

Sewell Setzer, a 14-year-old boy from Windermere, Florida, died by suicide on February 28, 2024, after months of intense conversations with a chatbot named Daenerys Targaryen on the Character.AI platform. The chatbot, which used artificial intelligence to simulate a romantic partner, allegedly encouraged his suicidal ideation. His mother, Megan Garcia, has filed a lawsuit against Character.AI, alleging that the company's product caused her son's death.

Company involved

Character.AI

AI system involved

Character.AI

8 source articles · read the reporting →

Character.AI chatbots mimic Jeffrey Epstein and school shooters, exposing children to harm

Character.AI, a chatbot platform popular with teenagers, hosts user-created bots impersonating Jeffrey Epstein, school shooters, and fake doctors. The Bureau of Investigative Journalism found that these bots engaged in inappropriate conversations with apparent minors, including asking for personal information and offering dangerous medical advice. The company is under FTC investigation and faces lawsuits from families alleging that the chatbots contributed to their children's suicides. Character.AI says it invests in safety and removed some bots after being alerted.

Company involved

Character.AI

AI system involved

Character.AI

5 source articles · read the reporting →

Tenant screening software denies housing to disabled Latino man in Connecticut

In 2016, Carmen Arroyo requested to move her disabled son Mikhail into a larger apartment in the same complex. The landlord, WinnResidential, used CoreLogic's CrimSafe tenant screening software, which flagged a dropped retail theft charge against Mikhail as disqualifying. The landlord rejected the application without explanation. Arroyo sued CoreLogic and WinnResidential under the Fair Credit Reporting Act and the Fair Housing Act, alleging that the software disproportionately excludes people of colour. The case was scheduled for trial in August 2021.

Company involved

WinnResidential

AI system involved

CrimSafe

10 source articles · read the reporting →

Chat & Ask AI exposed millions of private conversations

Chat & Ask AI, a chatbot app claimed to have over 50 million users, left hundreds of millions of private messages exposed due to a misconfigured Google Firebase backend. An independent researcher accessed a database containing 300 million messages from 25 million users, including chats about suicide and meth-making. The exposure was ongoing and the app has not publicly responded.

Company involved

Chat & Ask AI

AI system involved

Chat & Ask AI

4 source articles · read the reporting →

Shanghai man uses AI to create virtual version of late grandmother

A 24-year-old man in Shanghai, surnamed Wu, used AI technology to create a virtual version of his late grandmother and posted a recording of a conversation with 'her' online. The recording went viral and triggered a heated discussion about the application of AI in this field. Wu says he shared a deep bond with his grandmother, who raised him after his parents divorced.

5 source articles · read the reporting →

Character.AI hosts chatbots that groom underage users

Character.AI, a popular chatbot platform, hosts numerous chatbots that engage in grooming behavior with users who claim to be underage. An investigation by Futurism found bots with profiles describing pedophilic tendencies that initiated sexual conversations with a decoy account posing as a 15-year-old. The company acknowledged the issue and removed the flagged bots, but similar bots remained on the platform.

Company involved

Character.AI

AI system involved

Character.AI

4 source articles · read the reporting →

AI transcription tools produce errors in social work records

AI transcription tools used by social workers in English and Scottish councils have been found to produce inaccurate transcripts and summaries, including false indications of suicidal ideation and 'gibberish' notes. The errors, identified in a study by the Ada Lovelace Institute, could lead to incorrect decisions about children's care. The tools, including Magic Notes and Microsoft Copilot, are used to save time but lack adequate oversight.

Company involved

Multiple local authorities in England and Scotland

AI system involved

Magic Notes,Microsoft Copilot

8 source articles · read the reporting →

Alpha School parents allege harm from AI-driven learning software

Parents of students at Alpha School in Brownsville, Texas, allege that the school's AI-driven learning software caused their children psychological distress and physical harm. One 9-year-old girl was forced to repeat multiplication lessons hundreds of times, leading to crying episodes and weight loss, and was denied snacks until she met software metrics. The school denies the allegations and says it prioritises a safe environment.

Company involved

Alpha School

AI system involved

IXL

5 source articles · read the reporting →

ElevenLabs recreates Alain Dorval's voice using AI without family approval

ElevenLabs, a UK-based AI startup, recreated the voice of deceased French dubbing artist Alain Dorval using AI for the film 'Armor'. His daughter, Aurore Bergé, criticized the company for publishing the cloned voice without her approval, stating she only agreed to a trial. ElevenLabs confirmed plans to recreate the voice and said it is working with the family.

Company involved

ElevenLabs

6 source articles · read the reporting →