Where automated decisions went wrong

Supreme Court strikes down NCLT order based on AI-hallucinated judgments

The National Company Law Tribunal admitted an insolvency petition against Essel Infraprojects, relying on six AI-generated citations that were later found to be non-existent or misattributed. Essel Infraprojects appealed, and the Supreme Court set aside the order, calling the use of fake judgments catastrophic. The court directed the Bar Council of India to examine AI use in litigation and ordered a fresh decision.

Company involved

National Company Law Tribunal

1 source article · read the reporting →

Chicago Tribune sues Perplexity AI for copyright infringement

Chicago Tribune Company, LLC filed a lawsuit against Perplexity AI, Inc. in the Southern District of New York on December 4, 2025. The complaint alleges copyright infringement under 17 U.S.C. § 501. The case is assigned to Judge Loretta A. Preska.

Company involved

Perplexity AI, Inc.

5 source articles · read the reporting →

CFPB fines General Information Services for inaccurate background checks

The Consumer Financial Protection Bureau took action against General Information Services and its affiliate e-Background-checks.com for failing to ensure the accuracy of employment background screening reports. The companies allegedly provided inaccurate criminal history information to employers, potentially affecting job applicants' eligibility and causing reputational harm. The CFPB ordered the companies to provide $10.5 million in relief to harmed consumers and pay a $2.5 million penalty.

Company involved

General Information Services

10 source articles · read the reporting →

Ferris v. Amazon.com Services (N.D. Mississippi): AI-hallucinated content in court filing, Plaintiff ordered to pay Defendant’s reasonable costs related to…

The AI generated fabricated legal citations that were submitted to the court, affecting the defendant and the judicial process.

1 source article · read the reporting →

Sullivan & Cromwell apologises for AI hallucinations in court filing

Sullivan & Cromwell, an elite Wall Street law firm, used an AI tool to help draft a court filing in the Prince Group case. The filing contained inaccurate citations and misquoted the US bankruptcy code due to AI hallucinations. The errors were uncovered by opposing counsel Boies Schiller Flexner, and the firm apologised to the judge and filed a corrected version. The firm stated that its AI policies were not followed and its review process failed to catch the mistakes.

Company involved

Sullivan & Cromwell

3 source articles · read the reporting →

Air Canada Chatbot Fabricates Discount, Leading to Court Case

Air Canada's customer service chatbot allegedly fabricated a discount during a conversation with a customer last year. The incident resulted in a court case against the airline. Insurer Armilla stated that its new AI mishap policy would have covered the loss from selling tickets at the discounted price if the chatbot was found to have underperformed.

Company involved

Air Canada

AI system involved

chatbot

6 source articles · 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 →

Cense exposed 2.5 million records of auto accident victims online

On July 7, 2020, a security researcher discovered 2.5 million records containing personal and medical data of auto accident victims exposed online. The records, belonging to New York-based AI company Cense, included names, insurance policy numbers, claim numbers, and medical diagnosis notes. The data was labeled as staging data, possibly intended for temporary storage before being loaded into an AI system. After the researcher sent a responsible disclosure notice, Cense restricted public access to the database.

Company involved

Cense

AI system involved

Cense

5 source articles · read the reporting →

CanLII sues Caseway AI for scraping legal database

The Canadian Legal Information Institute (CanLII) has filed a lawsuit in British Columbia Supreme Court against Caseway AI, alleging that the company's AI chatbot scraped approximately 3.5 million records from CanLII's database in bulk, violating its terms of service and copyright. CanLII claims it adds value to public court records through hyperlinks and corrections, which it says constitute protected copyrighted work. Caseway AI argues the information is public and accessible elsewhere, and that it did not use CanLII's enhancements. The lawsuit was settled in March 2026, with terms undisclosed.

Company involved

Canadian Legal Information Institute (CanLII)

AI system involved

Caseway

5 source articles · read the reporting →

Canadian Tire chided by BC privacy commissioner for facial recognition without consent

Canadian Tire deployed facial recognition in at least four British Columbia stores between 2018 and 2021 to curb theft and increase staff safety. The BC Privacy Commissioner investigated and found the retailer failed to show a reasonable purpose and did not obtain customer consent, violating the province's Personal Information Protection Act. After the investigation was announced, Canadian Tire discontinued use of the system at all 12 locations and deleted customer data. The commissioner recommended stronger privacy policies and government regulation of biometric technologies.

Company involved

Canadian Tire

10 source articles · read the reporting →

Clearview AI to pull out of Canada and stop working with RCMP amid privacy investigation

Clearview AI, the US facial recognition company, has agreed to stop offering its services in Canada amid a joint investigation by Canadian privacy regulators. The company's technology, which matches images against billions of photos scraped from the internet, was used by the RCMP and more than 20 other police services across Canada. The Office of the Privacy Commissioner of Canada announced the 'indefinite suspension' of Clearview's contract with the RCMP, its last remaining Canadian client. The investigation into whether the technology breaches Canadian privacy laws will continue.

Company involved

Clearview AI

AI system involved

Clearview AI

10 source articles · read the reporting →

FTC settles with IntelliVision over deceptive facial recognition claims

The Federal Trade Commission (FTC) took action against IntelliVision Technologies Corp. for making false, misleading, or unsubstantiated claims about its AI-powered facial recognition software. The company allegedly claimed its software had one of the highest accuracy rates on the market and was free of gender or racial bias, without supporting evidence. The FTC also alleged that IntelliVision did not train its software on millions of faces as claimed, but on images of approximately 100,000 individuals. Under a proposed consent order, IntelliVision is prohibited from making such misrepresentations without competent and reliable testing.

Company involved

IntelliVision Technologies Corp.

AI system involved

IntelliVision facial recognition software

9 source articles · read the reporting →

California DMV suspends Cruise LLC driverless and deployment permits

The California Department of Motor Vehicles suspended Cruise LLC's autonomous vehicle deployment and driverless testing permits, saying the vehicles were not safe for public operation and that Cruise had misrepresented safety information. The suspension took effect immediately under California regulations. Cruise may apply to reinstate the permits once it satisfies the department's requirements. Its permit for testing with a safety driver was not affected.

Company involved

Cruise LLC

10 source articles · read the reporting →

ООО «Точка опоры» v. ООО «ЦСС» (West Siberian District AC): AI-hallucinated content in court filing, Monetary Fine

The AI system generated fake legal citations that were submitted to the court, resulting in a fine for contempt.

Company involved

ООО «ЦСС»

1 source article · read the reporting →

EviCore denied heart catheterization for patient using algorithm

In fall 2021, Little John Cupp's doctor requested a left heart catheterization exam. EviCore, a company hired by UnitedHealthcare, denied the request twice using an algorithm called 'the dial' that adjusts thresholds for review. The algorithm flagged the request for review, and EviCore's doctors determined it was not medically necessary. Cupp did not receive the procedure and his symptoms continued.

Company involved

EviCore (a Cigna company)

AI system involved

the dial

6 source articles · read the reporting →

IRCC uses AI triage for Temporary Resident Visa applications

Immigration, Refugees and Citizenship Canada (IRCC) uses an AI system called Advanced Analytics to triage Temporary Resident Visa applications from India and China. The system categorizes applications into tiers, with Tier 1 approved automatically and others sent to human officers. Critics allege the system lacks transparency and may introduce bias, leading to visa refusals without clear rationale. The author, a Canadian immigration lawyer, is filing Federal Court cases on behalf of clients affected by refusals.

Company involved

Immigration, Refugees and Citizenship Canada (IRCC)

AI system involved

Advanced Analytics Triage of Overseas Temporary Resident Visa Applications

10 source articles · read the reporting →

Cigna StressWaves Test found unreliable and invalid in independent study

A study published in Scientific Reports evaluated the Cigna StressWaves Test (CSWT), an AI tool that claims to assess psychological stress from speech. The study found that the CSWT had poor test-retest reliability and poor validity compared to the Perceived Stress Scale. The authors warned that widespread availability of the tool could lead to misleading results and negative consequences for users making healthcare decisions. Cigna has not publicly responded to the findings.

Company involved

Cigna

AI system involved

Cigna StressWaves Test

4 source articles · read the reporting →

BC Tribunal Confirms Companies Remain Liable for AI Chatbot-Created Information - Lexology

The AI chatbot provided inaccurate information to a user.

1 source article · 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 →

Publishers sue AI startup Cohere over alleged copyright infringement

A consortium of 14 publishers including Condé Nast, The Atlantic, and Forbes filed a lawsuit against Cohere, alleging that the generative AI startup engaged in massive, systematic copyright infringement by using at least 4,000 copyrighted works to train its AI models and display large portions of articles, harming referral traffic. Cohere denied the allegations, calling the lawsuit misguided and frivolous.

Company involved

Cohere

AI system involved

Cohere's AI models

8 source articles · read the reporting →

42,900 OpenClaw AI agents exposed, 15,200 vulnerable to RCE

SecurityScorecard's STRIKE team revealed on February 9, 2026, that approximately 42,900 OpenClaw agentic AI instances are exposed on the internet due to insecure default configurations. Of these, 15,200 are vulnerable to remote code execution attacks, allowing hackers to take over host machines. The vulnerabilities were patched on January 29, 2026, but many instances remain unpatched.

AI system involved

OpenClaw

5 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 →

TransUnion AI tenant screening denied 75-year-old man apartment due to mistaken littering conviction

Chris Robinson, then 75, applied for a senior living apartment in California. The property manager used an AI screening program from TransUnion, which assigned him a low score based on a mistaken conviction for littering that belonged to a different person with the same name in Texas. Robinson lost the apartment and his application fee. A federal class-action lawsuit against TransUnion moved toward a $11.5 million settlement in 2023.

10 source articles · read the reporting →

Didi fined for over-collecting personal data of users

The Cyberspace Administration of China fined Didi Global Inc. for violating data protection laws. The investigation found that Didi had over-collected personal data from passengers and drivers, including facial recognition, location, and clipboard information, totaling billions of records. The violations began in 2015 and continued until the investigation in 2021. Didi was ordered to pay a penalty and correct its practices.

Company involved

滴滴全球股份有限公司 (Didi Global Inc.)

AI system involved

Didi ride-hailing apps

8 source articles · read the reporting →