KPMG drops AI report after false case studies exposed
KPMG removed a global report on AI after multiple case studies were found to be inaccurate and apparently generated from AI hallucinations. The report falsely claimed that UBS, NHS Greater Manchester, Swiss Federal Railways and Transport for London used AI agents in various ways. The companies denied the claims, and KPMG took the report down while reviewing its production.
- Company involved
- KPMG
3 source articles · read the reporting →
UDR Sued Over Alleged Use of RealPage Algorithm to Set Rents in San Diego
A class action lawsuit alleges that UDR, Inc. used RealPage's YieldStar algorithmic pricing software to set rental rates and occupancy levels for its San Diego properties, in violation of a local ordinance. The suit claims the software relied on nonpublic competitor data, contributing to inflated rents and making housing less affordable. The lawsuit, filed in July 2026, seeks to represent all affected tenants. UDR has previously acknowledged using YieldStar as one tool among others in its decision-making.
- Company involved
- UDR, Inc.
- AI system involved
- RealPage YieldStar
1 source article · read the reporting →
EEOC sues iTutorGroup for automated rejection of older tutor applicants
The US Equal Employment Opportunity Commission (EEOC) alleges that tutoring provider iTutorGroup programmed its recruitment software automatically to reject female applicants aged 55 or older and male applicants aged 60 or older. More than 200 qualified US-based applicants were denied work in 2020. The EEOC has filed a lawsuit in the Eastern District of New York seeking back pay and damages.
- Company involved
- iTutorGroup
10 source articles · read the reporting →
AMS algorithm lacks transparency and may discriminate against job seekers
The Austrian Public Employment Service (AMS) uses an algorithm to classify job seekers into categories A, B, and C, determining their access to benefits and training. Scientists from TU Wien, WU Wien, and University of Vienna have criticised the algorithm for lacking transparency, as only two of 96 model variants have been published. They allege that the system may discriminate against women and people with migration background, and that job seekers are not informed about how the algorithm works or given a chance to appeal.
- Company involved
- AMS (Arbeitsmarktservice Österreich)
- AI system involved
- AMS-Algorithmus
10 source articles · read the reporting →
Southwest Airlines holiday meltdown due to crew scheduling software failure
In December 2022, Southwest Airlines experienced a catastrophic operational meltdown after its crew scheduling software failed to assign pilots and flight attendants to flights during a winter storm. The system, SkySolver and Crew Web Access, could not handle the volume of schedule changes, leading to over 15,800 flight cancellations and stranding thousands of passengers and crew. Southwest's CEO acknowledged the technology failure and promised upgrades, but the incident remained unresolved at the time of reporting.
- Company involved
- Southwest Airlines
- AI system involved
- SkySolver and Crew Web Access
10 source articles · read the reporting →
Austrian court lifts ban on AMS job-chance prediction algorithm
The Austrian Federal Administrative Court overturned a ban by the Data Protection Authority on the AMS algorithm, which predicts job chances of unemployed people. The system, trained on historical data including age, gender, and nationality, categorises individuals as high, medium or low chance of re-employment. Critics argue it discriminates against women and mothers, and that the data is now outdated due to the COVID-19 pandemic. The court ruled that the algorithm is lawful as long as a human advisor makes the final decision on training support.
- Company involved
- Arbeitsmarktservice (AMS)
- AI system involved
- AMS-Algorithmus
5 source articles · read the reporting →
EU to trial AI lie detector at airports in Hungary, Latvia, Greece
The European Union is set to trial an AI-powered lie detector system called iBorderCtrl at airports in Hungary, Latvia and Greece. The system uses a virtual avatar to question passengers and monitors their facial expressions to detect deception. Privacy groups have raised concerns about bias and error rates, noting that the technology has only been tested on 32 people. The trial will require passenger consent and will be overseen by human guards.
- Company involved
- European Union (iBorderCtrl project)
- AI system involved
- iBorderCtrl
6 source articles · read the reporting →
Finnish recruitment company Digital Minds used AI to analyze job applicants' messages, prompting data protection investigation
Digital Minds, a Finnish recruitment company founded by psychologists, used IBM Watson AI to analyze job applicants' social media and email messages for personality assessments. The company obtained written consent but the Finnish Data Protection Ombudsman launched an investigation, suspecting violations of data protection laws and the secrecy of correspondence. The service was used on fewer than ten applicants and has been paused pending the investigation.
- Company involved
- Digital Minds
- AI system involved
- IBM Watson
9 source articles · read the reporting →
Teleperformance plans AI webcam surveillance for home-working staff
Teleperformance, a global call centre company, told some staff it would install AI-powered webcams to monitor home-working infractions such as eating, phone use, or leaving desks. The system would randomly scan for breaches and send alerts to managers. After the Guardian inquired, the company said the remote scans would not be used in the UK, but the plan raised concerns from unions and MPs about invasive surveillance.
- Company involved
- Teleperformance
10 source articles · read the reporting →
Recurso de Suplicación 0005472/2025 (T.S.X. Galicia): AI-hallucinated content in court filing, Bar Referral
The AI generated false legal citations that were included in a court filing, misleading the court and potentially harming the client's case.
1 source article · read the reporting →
ViaQuatro's facial recognition system in São Paulo metro challenged in court
In April 2018, ViaQuatro installed the Digital Interactive Doors System, developed by AdMobilize, on the São Paulo metro's yellow line. The system used cameras to detect passengers' faces and claimed to infer their emotion, age, and gender in order to target advertisements. The Brazilian Institute of Consumer Protection (IDEC) filed a public civil action alleging that the system violated consumer and data protection laws by processing biometric data without consent and making pseudoscientific and discriminatory inferences. A judge ordered the cameras removed in August 2018, and the case is pending a final ruling.
- Company involved
- ViaQuatro
- AI system involved
- Digital Interactive Doors System (DID system)
10 source articles · read the reporting →
GSMA fined €200,000 for facial recognition privacy violation at MWC
In 2021, Dr Anastasia Dedyukhina was invited to speak at Mobile World Congress in Barcelona. The organizers required her to upload biometric data (passport) online for identity verification, which she refused. She was then forced to attend virtually. She filed a complaint with the Spanish data protection agency (AEPD) along with Adam Leon Smith. Two years later, the AEPD fined GSMA €200,000 for infringing the privacy of nearly 20,000 attendees through the use of facial recognition without proper justification.
- Company involved
- GSMA
10 source articles · read the reporting →
Italian privacy regulator fines Foodinho €2.6 million for algorithmic discrimination against riders
The Italian Data Protection Authority (Garante) fined Foodinho S.r.l., a subsidiary of GlovoApp23, €2.6 million for privacy violations related to its algorithmic management of food delivery riders. The Garante found that the company's digital platform used algorithms to assign orders and rate riders without adequate transparency, human oversight, or the right to contest decisions. The system allegedly penalized riders who did not accept orders quickly, leading to reduced work opportunities and exclusion from the platform. The Garante ordered Foodinho to implement corrective measures within 60 days and to overhaul the algorithms within 90 days.
- Company involved
- Foodinho S.r.l.
10 source articles · read the reporting →
Mercadona fined €2.5 million for facial recognition pilot
Mercadona, a Spanish supermarket chain, tested an early-detection system using facial recognition in 48 stores to identify people with judicial restraining orders. The system, which operated with court authorisation, notified police when such a person was detected. The Spanish data protection authority (AEPD) imposed a €2.5 million fine, which Mercadona paid, and the company has since removed the system citing legal uncertainty.
- Company involved
- Mercadona
- AI system involved
- Sistema de Detección Anticipada (Early Detection System)
10 source articles · read the reporting →
Spanish Supreme Court orders release of BOSCO algorithm code for social electricity bonus
The Spanish NGO Civio won a Supreme Court case forcing the government to release the source code of BOSCO, the algorithm that decides eligibility for the social electricity bonus (bono social eléctrico). Civio had demonstrated in 2019 that BOSCO contained serious errors that denied the benefit to vulnerable people who met the requirements. The government had refused to disclose the code, citing intellectual property. The Supreme Court ruled that transparency must prevail, setting a precedent for public access to automated decision-making systems.
- Company involved
- Ministerio para la Transición Ecológica (Gobierno de España)
- AI system involved
- BOSCO
10 source articles · read the reporting →
AI-generated travel guides flood Amazon, deceiving customers
AI-generated travel guides are flooding Amazon, allegedly written by scammers using AI to produce generic, low-quality content. Customers who purchase these guides receive poor information and feel defrauded. Amazon claims to enforce content guidelines but many such books remain on the platform.
- Company involved
- Amazon
8 source articles · read the reporting →
LINAGORA closes Lucie 7B after user mockery
LINAGORA, a French open-source software company, launched a beta version of its large language model Lucie 7B. The model was intended to be a transparent and ethical alternative to big tech AI. However, after users tested it and highlighted its shortcomings, the model was mocked online. LINAGORA subsequently closed the platform to address the issues and collect more data.
- Company involved
- LINAGORA
- AI system involved
- Lucie 7B
6 source articles · read the reporting →
Teleperformance deploys AI to neutralise Indian call centre agents' accents
Teleperformance, the world's largest call centre operator, has announced it is using AI from Sanas to modify the accents of its Indian employees in real time. The technology, called accent translation, aims to make agents sound more neutral to native English speakers. The company invested $13 million in Sanas and gained exclusive rights. No specific incident of harm has been reported.
- Company involved
- Teleperformance
- AI system involved
- Sanas AI
6 source articles · read the reporting →
Air Canada liable for chatbot's misleading bereavement advice
Air Canada was found liable by the B.C. Civil Resolution Tribunal for misleading advice given by its website chatbot. The chatbot told a passenger they could retroactively claim a bereavement rate, but the airline later denied the claim. The tribunal ordered Air Canada to pay $812 in compensation, noting the airline's argument that the chatbot was a separate legal entity was 'remarkable'.
- Company involved
- Air Canada
- AI system involved
- Air Canada chatbot
10 source articles · read the reporting →
Spanish police bust $20M AI-powered investment scam
Spanish law enforcement, collaborating with international authorities, dismantled a $20 million investment scam that used AI-driven algorithms to deceive individuals and organizations. Six suspects were detained and assets, including luxury cars and cryptocurrency, were seized. The article does not report any compensation for victims.
5 source articles · read the reporting →
AAIP investigates Worldcoin's personal data processing in Argentina
The Argentine Agency for Access to Public Information (AAIP) has initiated an investigation into the data processing practices of Worldcoin in Argentina. The investigation focuses on the collection, storage, and use of biometric data, including facial and iris scans, carried out in several cities in exchange for financial compensation. The AAIP aims to verify compliance with the country's data protection law, Ley 25.326, regarding sensitive data handling.
- Company involved
- Worldcoin (Fundación Worldcoin)
- AI system involved
- Worldcoin
8 source articles · read the reporting →
Italian privacy regulator investigates OpenAI's Sora video generation model
The Italian Data Protection Authority (Garante Privacy) has opened an investigation into OpenAI's new AI model 'Sora', which creates short videos from text instructions. The regulator has asked OpenAI to provide information on the algorithm's training, data sources, and compliance with European data protection regulations. OpenAI must respond within 20 days.
- Company involved
- OpenAI
- AI system involved
- Sora
7 source articles · read the reporting →
Leonardo AI misused to create nonconsensual explicit images of celebrities
Leonardo AI, an AI image-generating platform backed by Samsung, has been misused to create nonconsensual explicit images of celebrities. The platform allows users to generate images using user-generated Stable Diffusion models. Users bypassed ethical guardrails by misspelling celebrity names and using sexually suggestive terms. The misuse was reported by 404 Media.
- Company involved
- Leonardo AI
- AI system involved
- Leonardo AI
5 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 →
