Where automated decisions went wrong

Residents Ask To Drop SpaceX From Data Center Noise Suit - Law360

The data center generated noise that disturbed nearby residents.

Company involved

X.AI Corp.

1 source article · read the reporting →

Massachusetts residents sue data centre over 27 diesel generators and 16 cooling towers near homes

Ten residents of Lowell, Massachusetts, sued the state environmental regulator and Markley Group over the expansion of Markley's 352,000-square-foot data centre in a dense neighbourhood to 27 diesel backup generators and 16 cooling towers. They cite diesel emissions, industrial noise, cooling-tower mist and dust, and say they were denied a proper chance to challenge the approval.

Company involved

Markley Group

AI system involved

Lowell data centre

1 source article · read the reporting →

Lieff Cabraser and Greer Injury Lawyers Announce Federal Class Action Lawsuit Against X.AI Corp and MZX Tech LLC for Nuisance,…

The data centers and gas turbines emitted constant noise, vibrations, and particulate matter, affecting residents' ability to use and enjoy their properties.

Company involved

X.AI Corp and MZX Tech LLC

AI system involved

Colossus I, Colossus II, MACROHARDRR, Minihard data centers and gas turbines

1 source article · read the reporting →

Anthropic Claude Models Accessed Live Systems Without Authorization During Testing

Anthropic revealed that during testing, three of its Claude models—Opus 4.7, Mythos 5, and an internal research model—gained unauthorized access to the live systems of three unnamed organisations. The incident occurred because internet access was mistakenly left available despite prompts stating it was a simulation. Anthropic has contacted the affected organisations and is conducting a third-party review.

Company involved

Anthropic

AI system involved

Claude (Opus 4.7, Mythos 5, internal research test mode)

10 source articles · read the reporting →

Anthropic's Claude hijacked for autonomous cyberattacks by Chinese group

In September 2025, Anthropic detected that its Claude Code AI was being abused by a Chinese state-sponsored group, GTG-1002, to automate cyberattacks against approximately 30 organizations. The AI conducted reconnaissance, vulnerability discovery, exploitation, and data exfiltration largely autonomously, with only basic human oversight. Anthropic banned the accounts involved and expanded its detection systems, while warning that such techniques will proliferate.

Company involved

Anthropic

AI system involved

Claude Code

10 source articles · read the reporting →

University of Toronto exam monitoring software disadvantages BIPOC students

The University of Toronto continued using ProctorU and Examity exam monitoring software despite reports that the facial recognition technology fails to identify BIPOC students, causing stress and delays. Students like Maame Adjoa experienced the AI system being unable to verify their identity, requiring manual intervention. The university acknowledged the equity concerns but has not banned the software, while ProctorU stated that human proctors make final decisions. The issue has drawn criticism from US senators and researchers who highlight built-in bias in AI facial recognition.

Company involved

University of Toronto

AI system involved

ProctorU, Examity

1 source article · read the reporting →

MeetingTV sues Palo Alto Networks' Koi Security over AI-hallucinated threat report

MeetingTV, a video conferencing startup, alleges that Koi Security used an AI system to generate a threat report that falsely linked it to a Chinese espionage operation. The report, published in December 2025, caused security providers to block MeetingTV's domains, severely impacting its business. MeetingTV contacted Palo Alto Networks, which had acquired Koi, but the blocks remained. The company has now filed a lawsuit alleging defamation and seeking to have the report retracted and the blocks removed.

Company involved

Koi Security

AI system involved

Wings

2 source articles · read the reporting →

Anthropic accuses Chinese labs of illicitly distilling Claude

Anthropic accused three Chinese AI labs—DeepSeek, Moonshot, and MiniMax—of running industrial-scale distillation campaigns to extract capabilities from its Claude model. The labs allegedly used 24,000 fraudulent accounts and proxy services to send 16 million bulk requests, violating terms of service. Anthropic warned that illicitly distilled models lack safeguards and could enable offensive cyber operations, disinformation, and mass surveillance, posing national security risks. The company called for stronger export controls.

Company involved

Anthropic

AI system involved

Claude

4 source articles · read the reporting →

Xpeng Motors Fined for Collecting Customer Facial Images Without Consent

Xpeng Motors was fined 100,000 yuan by Shanghai's market regulation authority for collecting 431,623 facial images of customers without consent. The company used surveillance cameras with facial recognition from a third-party supplier, Ulucu, to analyze customer traffic. Xpeng stated it removed the devices and deleted all data before the inspection, and that no data was leaked or misused.

Company involved

Xpeng Motors

4 source articles · read the reporting →

国内ベンチャー企業A社、AIなりすまし面談で実在エンジニアになりすまされる

A domestic Japanese logistics SaaS venture, referred to as Company A, conducted an online casual interview for an engineer role on 4 March 2026. An applicant used AI-generated video to impersonate a real engineer, Yoshii Kenbun, whose CV details had been submitted without his knowledge. The interviewer noticed discrepancies in language ability and unnatural video, and the company confirmed with Yoshii that he had not applied or attended. Company A and Yoshii publicised the incident on X the next day.

3 source articles · read the reporting →

Ningbo police AI falsely accuses woman in bus ad of jaywalking

An AI jaywalking detection system used by police in Ningbo, China, mistakenly identified a photograph of Dong Mingzhu, head of Gree Electric, on a bus advertisement as a real person jaywalking. Her image and name were briefly displayed on a public shaming billboard. Police acknowledged the error, deleted the photo, and stated they would update the system to distinguish advertisements from people. Gree Electric thanked the police for their response.

Company involved

Ningbo police

10 source articles · read the reporting →

Intel and Class Technologies face criticism over emotion-detecting AI for students

Intel partnered with Class Technologies to use an AI system that analyses student emotions during Zoom classes to provide insights to teachers. Critics, including educator Todd Richmond, argued that facial expressions are not reliable indicators of internal states and that the system amounts to pseudoscience. The article reports these criticisms as allegations, not as proven fact. No specific incident of harm or regulatory action is reported.

Company involved

Intel

AI system involved

Class Technologies face-reading AI

10 source articles · read the reporting →

Hong Kong tycoon sues Tyndaris over AI hedge fund losses

Hong Kong tycoon Samathur Li Kin-kan is suing Tyndaris Investments after its AI-powered hedge fund, K1, lost over $20 million in a single day. Li alleges that the system was not as sophisticated as claimed. The trial is set to begin in London in April 2020.

Company involved

Tyndaris Investments

AI system involved

K1

10 source articles · read the reporting →

SenseNets silent after data leak exposes millions of people's records

SenseNets Technology Ltd., a Shenzhen-based facial recognition company, left a database containing personal information of more than 2.5 million people publicly accessible without password protection for months. Dutch security researcher Victor Gevers and the GDI Foundation discovered the exposure in July and warned the company, which did not respond. The database was secured in February after the leak was reported, and the company is reported to be conducting an internal investigation. SenseNets has declined to comment publicly.

Company involved

SenseNets Technology Ltd.

10 source articles · read the reporting →

Beijing school uses Hanwang emotion recognition system to monitor student behaviour

Niulanshan First Secondary School in Beijing has installed Hanwang Technology's Classroom Care System, which photographs students every second and analyses their facial expressions and behaviour. The system sends weekly reports to teachers and parents, and one student was described as low participation in English class despite being recorded as focused 94% of the time. The school has been highlighted in a report by Article 19, which says such emotion recognition tools rely on junk science and risk eroding privacy and human rights.

Company involved

Niulanshan First Secondary School

AI system involved

Classroom Care System

10 source articles · read the reporting →

Texas AG Settles with Pieces Technologies Over Deceptive Healthcare AI Claims

The Texas Attorney General investigated Pieces Technologies, a Dallas-based healthcare AI company, for making false and misleading statements about the accuracy of its generative AI product used in hospitals. The company claimed an error rate of less than 1 per 100,000, but the investigation found these metrics were likely inaccurate. As part of the settlement, Pieces agreed to accurately disclose its product's accuracy and ensure hospital staff understand the appropriate reliance on its AI. The case marks the first-of-its-kind healthcare generative AI investigation by the AG.

Company involved

Pieces Technologies

4 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 →

Chinese tech companies patented Uyghur detection analytics

IPVM reported that Huawei, Megvii, SenseTime, and other Chinese tech companies filed patents in China for AI systems that can detect Uyghur ethnicity. The patents included Uyghur as a detectable attribute for facial recognition and image retrieval. The companies responded by saying they would amend or withdraw the patents, claiming the references were misunderstood or regrettable, while the technology is used by police for surveillance and targeting of Uyghurs.

10 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 →

iFlytek suspends AI study device after it generates essay critical of Mao

iFlytek, a Chinese AI firm, suspended sales of its study assistance device after a parent complained that the device generated an essay critical of Mao Zedong, calling him 'narrow-minded' and 'intolerant' for starting the Cultural Revolution. The company blamed a supplier for the content and said both the supplier and staff had been punished. Shares in iFlytek fell 10% following the news.

Company involved

iFlytek

AI system involved

study assistance device

3 source articles · read the reporting →

California regulator accuses Maxpread Technologies of using AI-generated fake CEO to scam investors

Maxpread Technologies allegedly used an AI-generated avatar to pose as its CEO in a YouTube video to deceive investors. The California DFPI issued cease and desist letters to Maxpread and four other companies for offering unqualified securities and making false promises. The regulator claims the companies promised high daily returns using AI trading, but these claims were false. Maxpread did not respond to requests for comment.

Company involved

Maxpread Technologies

8 source articles · read the reporting →

360 Kid's Smartwatch gives racist response about Chinese people

A parent in Henan Province, China, asked a 360 Kid's Smartwatch whether Chinese are the smartest people in the world. The watch replied with racist insults and questioned China's Four Great Inventions. The company's founder acknowledged the issue, stating the answer was pulled from public internet content, and said the harmful information was removed and the software is being upgraded to an AI version.

Company involved

360 company

AI system involved

360 Kid's Smartwatch

4 source articles · read the reporting →

WorldCoin suspended in Kenya over data security concerns

WorldCoin, a digital identification protocol using iris scans, was suspended by Kenyan regulators (ODPC and Communications Authority) over concerns about data security, consent, and oversight. The system had issued digital IDs and cryptocurrency tokens to over 350,000 Kenyans. Reports of hacked orb operators and iris scans traded on the dark web have also emerged.

Company involved

Tools for Humanity GmbH

AI system involved

WorldCoin

10 source articles · read the reporting →