Ibrahim Diallo fired by automated HR system, locked out for three weeks
Ibrahim Diallo, a software engineer in California, was automatically terminated by an HR system after a script triggered by a missed contract renewal revoked his access and disabled his key card. Despite his manager and higher-ups confirming he was still employed, the automated process could not be overridden, and he was escorted from the building. It took three weeks for the company to resolve the issue by rehiring him as a new employee, after which he quit. The incident highlights the risks of fully automated termination systems without human override.
10 source articles · read the reporting →
France: CNAF's discriminatory risk-scoring algorithm must be stopped
Amnesty International and coalition partners filed a complaint with the Council of State against CNAF's risk-scoring algorithm used to detect benefit overpayments. The algorithm assigns risk scores based on criteria that discriminate against vulnerable groups, including those with disabilities, single parents, and low-income households. The complaint alleges the system violates human rights to equality and privacy. The EU AI Act's social scoring ban may apply, but its definition remains unclear.
- Company involved
- CNAF
2 source articles · read the reporting →
Walmart employees claim Everseen anti-theft AI is flawed
A group of Walmart employees, calling themselves the Concerned Home Office Associates, alleged that the Everseen AI system used in thousands of stores to prevent shoplifting frequently produces false positives, flagging innocent customer behaviour as theft. They created a video showing the system failing to stop actual theft and mistakenly alerting for a phone. Employees said the false positives frustrate customers and lead to unnecessary interventions, raising public health concerns during the COVID-19 pandemic. Walmart denied a widespread issue but said it had made improvements.
- Company involved
- Walmart
- AI system involved
- Everseen
9 source articles · read the reporting →
UberEats algorithm change causes pay cuts and financial hardship for car drivers
A survey by the Transport Workers' Union found that UberEats car drivers experienced a 50% pay cut after the company changed its delivery allocation algorithm to preference cyclists and scooter riders. Drivers reported bankruptcy, homelessness, and inability to support their families. The TWU has called for regulation of the gig economy and delivered a letter to the NSW shadow minister.
- Company involved
- UberEats
- AI system involved
- UberEats platform
10 source articles · read the reporting →
Shipt's new V2 algorithm reduces pay for 41% of workers, study finds
A study by MIT Media Lab and Coworker.org found that Shipt's new V2 payment algorithm reduced pay for 41% of workers by an average of 11% per shop. The algorithm, rolled out in September 2020, replaced a transparent payment system with a black-box model. Workers pooled data to analyze the impact, revealing uneven distribution of earnings.
- Company involved
- Shipt
- AI system involved
- V2
10 source articles · read the reporting →
DWP's Universal Credit algorithm causes underpayment and hardship for claimants
The Department for Work and Pensions (DWP) uses an automated means-testing algorithm in its Universal Credit system that miscalculates earnings due to a design flaw, leading to underpayments and fluctuating benefit amounts. Claimants such as Janet R. received payments hundreds of pounds short, forcing them into debt and foodbank use. A Court of Appeal ruling in June 2020 ordered the DWP to fix the flaw, but the department had not yet fully implemented the remedy at the time of writing.
- Company involved
- Department for Work and Pensions
- AI system involved
- Universal Credit
10 source articles · read the reporting →
Dutch government continued SyRI welfare fraud profiling after ban
The Dutch government deployed the SyRI algorithm to profile welfare recipients in low-income neighborhoods, despite a 2020 court ruling that the system violated EU human rights. The algorithm flagged thousands of parents for fraud based on illegal risk factors such as dual nationality, leading to false accusations, bankruptcy, and trauma. The government has announced an external review of the practices.
- Company involved
- Ministry of Social Affairs of the Netherlands
- AI system involved
- SyRI
10 source articles · read the reporting →
Allstate's proposed retention model charged big spenders more in Maryland
Allstate proposed an auto insurance rate adjustment plan in Maryland using a retention model algorithm that varied premium changes based on existing premiums. The algorithm would have increased rates up to 20% for customers already paying the highest premiums while capping increases at 5% for others, and would have denied meaningful discounts to thousands owed reductions. The Maryland Insurance Administration rejected the plan as discriminatory, but Allstate claims it was withdrawn and has continued proposing similar models elsewhere. The proposal never took effect in Maryland.
- Company involved
- Allstate Corporation
- AI system involved
- retention model
9 source articles · read the reporting →
DoorDash changes tipping policy after backlash over worker tips
DoorDash, a food delivery company, changed its tipping policy after backlash. The company had been using customer tips to offset its base pay to delivery workers, meaning workers did not receive the full tips. After public outcry and promises from CEO Tony Xu, DoorDash announced a new model where workers will keep all tips, effective next month.
- Company involved
- DoorDash
10 source articles · read the reporting →
Uber algorithm reinforced gender pay gap in compensation offers to new hires
Uber used an algorithm to determine compensation offers for new hires, allegedly paying women less than men for similar roles. The algorithm was designed to protect existing shareholders and save money, but it reinforced existing gender pay gaps. The system is now being altered, according to The Information.
- Company involved
- Uber
7 source articles · read the reporting →
USPS algorithm RRECS causes pay cuts for two-thirds of rural mail carriers
The United States Postal Service (USPS) implemented a new algorithm, RRECS, to evaluate rural carrier routes and determine pay. Due to flaws in how carriers scanned packages, the algorithm underestimated route times, resulting in pay cuts for 66 per cent of rural carriers, some losing thousands of dollars annually. Carriers report that they were not adequately trained on the system and that the cuts are scheduled to take effect, though they have been postponed multiple times. The USPS stated that the system is the result of a nationally negotiated agreement.
- Company involved
- United States Postal Service
- AI system involved
- RRECS
9 source articles · read the reporting →
University of Chicago report finds US healthcare algorithms rife with bias
A University of Chicago report alleges that algorithms used by hospitals, insurers and other businesses across the US are biased along racial and economic lines. The algorithms help triage patients, predict diabetes and flag those needing extra care, but the report says flawed products were introduced with little oversight. It says inequitable treatment has continued for more than a decade.
7 source articles · read the reporting →
Denmark's Udbetaling Danmark welfare algorithm illegally surveilled millions
Udbetaling Danmark (UDK), Denmark's centralized welfare payment agency, used automated algorithms to check eligibility and detect fraud. The system collected personal data on millions of beneficiaries and their relatives, including non-beneficiaries, in what a think-tank called 'systematic surveillance'. A complaint to the Danish Data Protection Authority led to a ruling that the data collection violated GDPR, and UDK eventually deleted the illegally obtained data. The system also caused erroneous payments, including underpaying 300,000 pensioners by 94 million euros annually.
- Company involved
- Udbetaling Danmark
10 source articles · read the reporting →
Stack Overflow moderators strike over AI content policy
Volunteer moderators and contributors of Stack Overflow and the Stack Exchange network went on strike on June 5, 2023, protesting a policy by Stack Overflow, Inc. that prohibits removing AI-generated content except in narrow circumstances. The policy is alleged to allow incorrect information and plagiarism to proliferate on the platform. The strike paused moderation activities such as flagging, voting to close or delete posts, and running anti-spam bots. Negotiations concluded on August 2, 2023, with an agreement reached.
- Company involved
- Stack Overflow, Inc.
- AI system involved
- Stack Exchange network
10 source articles · read the reporting →
Study finds credit score algorithms less accurate for minorities
A study of 50 million US consumers found that credit scoring algorithms used by mortgage lenders are less accurate for minority and low-income applicants due to sparse credit data, leading to higher rejection rates. The inaccuracy is due to noise in the data, not bias, so fairer algorithms cannot fix it. The study suggests that adjusting for bias had no effect, and that addressing the inaccuracy could reduce disparities by 50%.
- Company involved
- Mortgage lenders (unnamed)
- AI system involved
- Credit scoring algorithms
6 source articles · read the reporting →
Amazon Mentor app falsely flags drivers, leading to firings and lost pay
Amazon requires contracted delivery drivers to use the Mentor app, which tracks and scores driving behavior. Drivers report that the app falsely detects infractions, such as incoming calls or picking up a device, causing their scores to drop. This leads to disciplinary actions including firing, loss of bonuses, and reduced pay. Amazon has not addressed the specific allegations.
- Company involved
- Amazon
- AI system involved
- Mentor
10 source articles · read the reporting →
ScaleFactor reportedly failed to deliver promised automated bookkeeping software
ScaleFactor, an Austin-based startup, is reported to have failed to deliver the automated, real-time bookkeeping tools it promised customers, instead relying on human bookkeepers and a Filipino contract accounting firm. The company told Forbes in June that it was shutting down, initially blaming the pandemic, but Forbes later reported that its problems predated Covid-19. Investors reportedly came to see the company as more of a services business than a software platform, and pulled funding after a pivot to a marketplace model. No legal or regulatory action is reported.
- Company involved
- ScaleFactor
10 source articles · read the reporting →
Stable Diffusion amplifies racial and gender stereotypes in generated images
An analysis by Bloomberg of over 5,000 images generated by Stability AI's Stable Diffusion found that the text-to-image model amplifies racial and gender stereotypes. The model overrepresented lighter-skinned men in high-paying jobs and darker-skinned people in low-paying jobs, and underrepresented women in positions of power. Stability AI acknowledged the inherent biases in its models and stated it is working on mitigation.
- Company involved
- Stability AI
- AI system involved
- Stable Diffusion
8 source articles · read the reporting →
Gorillas workers strike over algorithmic shift scheduling flaws
Workers at Gorillas delivery service in Berlin went on strike after an algorithm used for shift scheduling failed to comply with legal rest periods, causing shifts to be scheduled too close together. The algorithm, part of Project ACE, also generated incorrect warnings for missed shifts, leading to unfair firings. The workers demand full and timely payment of salaries, improved shift plans, and proper equipment. Management promised negotiations but instead hired private security to lock workers out.
- Company involved
- Gorillas
- AI system involved
- Project ACE
10 source articles · read the reporting →
UnitedHealth used ALERT algorithm to limit mental health coverage, regulators found
ProPublica reports that UnitedHealth Group's Optum subsidiary used the ALERT algorithm to flag mental health patients and therapists as outliers, leading to therapy coverage denials. Regulators in California, Massachusetts and New York alleged this breached the federal Mental Health Parity and Addiction Equity Act, and UnitedHealth agreed to restrict the system in those jurisdictions. The company denies wrongdoing and says its programmes are compliant. Affected patients, including Medicaid enrollees, were left to pay out-of-pocket or go without care.
- Company involved
- UnitedHealth Group
- AI system involved
- ALERT
5 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 →
California EDD's automated fraud detection wrongly suspended 600,000 legitimate unemployment claims
In January 2021, the California Employment Development Department used Thompson Reuters automated batch review software to flag 1.1 million unemployment claims as potentially fraudulent. EDD stopped payments on those claims without prior notice. Later, over 600,000 were confirmed as legitimate after claimants used ID.me to verify their identity. The incident highlights the trade-off between fraud prevention and timely benefit access.
- Company involved
- California Employment Development Department (EDD)
- AI system involved
- Thompson Reuters Automated Batch Review
7 source articles · read the reporting →
Serco Leisure issued enforcement notices for unlawful biometric monitoring of employees
Serco Leisure and associated trusts used facial recognition and fingerprint scanning to monitor employee attendance at 38 leisure facilities. The ICO found they unlawfully processed biometric data of over 2,000 employees. Enforcement notices were issued ordering them to stop.
- Company involved
- Serco Leisure Operating Limited
8 source articles · read the reporting →
Uber and Amazon algorithms pay different wages for same work
A study by law professor Veena Dubal alleges that Uber and Amazon use AI algorithms to offer different pay rates to gig workers doing identical work. The algorithms are said to calculate the lowest wage a driver will accept based on personal data. Uber denies tailoring individual fares, and the California Labor Commission's lawsuit against Uber and Lyft is ongoing.
- Company involved
- Uber
10 source articles · read the reporting →
