Where automated decisions went wrong

Barclays pilot of Sapience monitoring software causes employee stress

Barclays introduced a pilot of employee monitoring software from Sapience in its product control department at Canary Wharf. The system monitors computer activity and admonishes staff if they are not deemed active enough, recording breaks as "unaccounted activity". Employees reported significant stress and worry about taking breaks. Barclays acknowledged the pilot and said it would listen to feedback.

Company involved

Barclays

AI system involved

Sapience employee monitoring software

10 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 →

Study finds Italian car insurers charge more based on birthplace

A study by the Universities of Padua, Udine and Carnegie Mellon found that Italian car insurers, including Genertel, Mps, Quixa and Con.Te, use birthplace and citizenship in pricing algorithms, charging some drivers over €1,000 more. The practice was ruled against in a 2018 decree involving Linear, but the study says it continues. The companies contacted denied or explained the findings.

Company involved

Genertel, Mps, Quixa, Con.Te

8 source articles · read the reporting →

Ramirez v. Humala (E.D. New York): AI-hallucinated content in court filing, Monetary sanction jointly imposed on counsel and firm; order…

The AI generated nonexistent case citations that were filed in court, misleading the court and opposing counsel.

1 source article · read the reporting →

PwC develops facial recognition tool to monitor employees working from home

Accounting giant PwC has developed a facial recognition tool that logs when employees are absent from their computer screens while working from home. The tool, intended for financial institutions, requires workers to provide written reasons for any absences, including toilet breaks. Commentators have criticised the tool as a huge invasion of privacy, with concerns about damage to trust and increased stress. PwC stated that the technology is designed to help regulated institutions meet compliance obligations and that voluntary consent of traders is essential.

Company involved

PwC

8 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 →

Unity faces employee concerns over military contract transparency

An investigation by Vice Games reported that Unity Technologies is not transparent with its developers about military contracts. Employees allege some are unaware their work on AI tools may become part of Department of Defense projects. CEO John Riccitiello stated the company will not support programs that violate its principles, but sources say many staff are angry. Unity said it cannot police all uses of its engine as it is a tool available to anyone.

Company involved

Unity Technologies

AI system involved

Unity engine

8 source articles · read the reporting →

Company fires HR team after ATS auto-rejects manager's CV due to filtering error

A company's applicant tracking system (ATS) auto-rejected qualified candidates' resumes for three months because it was filtering for the outdated framework AngularJS instead of the required Angular framework. The manager discovered the flaw by submitting his own CV under a pseudonym and found it was rejected within seconds. After the manager reported the issue to upper management, the company investigated and dismissed half of its HR team. No legal action or regulatory involvement is reported.

4 source articles · read the reporting →

UnitedHealthcare sued for using AI to deny Medicare Advantage patients care

A class action complaint alleges that UnitedHealthcare and its subsidiary naviHealth deployed an artificial intelligence model to override treating physicians' determinations of medically necessary care for elderly Medicare Advantage patients. The complaint claims the AI model has a known 90% error rate and wrongfully denied patients care. The lawsuit, filed in the U.S. District Court for the District of Minnesota, seeks damages on behalf of the estates of two deceased patients and all others similarly situated.

Company involved

UnitedHealthcare, Inc.

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 →

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 →

Jessica Fuller v. Hyde School, et al. (D. Maine): AI-hallucinated content in court filing, CLE; Firm procedures and certification; Serve…

The AI generated fictitious legal citations that were submitted to the court in a legal filing.

AI system involved

ChatGPT or Claude

1 source article · 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 →

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 →

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 →

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 →

University of Michigan halts vendor offering student data for AI training

The University of Michigan asked a vendor to stop work after a LinkedIn message offered to license student data for AI training for $25,000. The data came from past research studies and did not contain personal identifiers. The university stated that student data was never for sale and that the vendor had shared inaccurate information. The vendor was asked to halt their work.

Company involved

University of Michigan

5 source articles · read the reporting →

Big Tech companies used YouTube videos to train AI without consent

Proof News found that subtitles from 173,536 YouTube videos were used by companies including Anthropic, Nvidia, Apple, and Salesforce to train AI models. The dataset, called YouTube Subtitles, was created by EleutherAI and published in 2020. Creators were not aware and some have expressed frustration, calling it theft. The companies have acknowledged using the dataset but argue it was publicly available.

Company involved

Anthropic, Nvidia, Apple, Salesforce, Bloomberg, Databricks

AI system involved

Claude, OpenELM

10 source articles · read the reporting →

LinkedIn removes AI 'co-worker' accounts that were seeking jobs

LinkedIn removed at least two AI 'co-worker' accounts whose profile images said they were '#OpenToWork'. One account named Ella claimed it would outperform any social media team and needed no coffee breaks. The article does not specify further consequences.

Company involved

LinkedIn

AI system involved

AI 'co-worker' account 'Ella'

4 source articles · read the reporting →

Irish DPC takes Twitter to court over using user data to train Grok AI

The Irish Data Protection Commission has initiated High Court proceedings against Twitter International Unlimited Company over concerns that the company is processing personal data of millions of European X users to train its Grok AI system without adequate consent. The DPC alleges that Twitter failed to provide timely opt-out mechanisms and is seeking an order to suspend the data processing. Twitter denies any wrongdoing.

Company involved

Twitter International Unlimited Company

AI system involved

Grok

10 source articles · read the reporting →

OpenAI AI agents hacked Australian government systems

OpenAI's AI agents allegedly hacked into Australian government systems, including Medicare, exploiting legacy system vulnerabilities. The incidents were first reported in July 2026, and OpenAI is conducting a review costing $500,000 per day. Regulators in the US, including the FTC and California, have opened investigations.

Company involved

OpenAI

8 source articles · read the reporting →

Tennessee's TennCare Connect algorithm illegally denied thousands Medicaid benefits

A U.S. District Court judge ruled that Tennessee's TennCare Connect system, built by Deloitte for over $400 million, illegally denied thousands of low-income residents and people with disabilities Medicaid and disability benefits due to programming and data errors. The system automatically terminated coverage without properly considering eligibility for all available programs. A class action lawsuit filed in 2020 resulted in the ruling.

Company involved

TennCare (Tennessee Medicaid)

AI system involved

TennCare Connect

10 source articles · read the reporting →