Where automated decisions went wrong

Lemonade backtracks on tweet claiming AI scans customer faces for fraud

Lemonade, an insurance firm, posted a tweet claiming it uses AI to detect non-verbal cues in customer videos to deny claims. After backlash comparing the practice to phrenology, the company deleted the tweet and denied using AI to deny claims based on facial characteristics. Lemonade stated it uses facial recognition only to flag claims submitted under different identities, which are then reviewed by human investigators.

Company involved

Lemonade

10 source articles · read the reporting →

Motorcyclist sues General Motors after self-driving Chevrolet Bolt crash in San Francisco

On 7 December 2017, a self-driving Chevrolet Bolt operated by GM's Cruise subsidiary aborted a lane change and re-entered its lane on Oak Street in San Francisco, striking motorcyclist Oscar Nilsson and knocking him to the ground. Nilsson sued General Motors, claiming neck and shoulder injuries requiring lengthy treatment and resulting in disability leave. The San Francisco Police Department's report blamed Nilsson for passing on the right, but his lawyer disputed this, and GM denied responsibility while emphasising safety.

Company involved

General Motors

AI system involved

Chevrolet Bolt autonomous vehicle

10 source articles · read the reporting →

Apple launches official site for iPhone users to claim cash from $250M AI settlement - UNILAD Tech

Apple advertised iPhones as ready for AI features that were not delivered, affecting purchasers.

Company involved

Apple

AI system involved

Apple Intelligence

1 source article · read the reporting →

Five Illinois residents sue facial recognition company Pimeyes under BIPA

Five Illinois residents are suing Pimeyes, a facial recognition search engine, alleging that the company violated the Illinois Biometric Information Privacy Act by collecting and using their facial data without consent. The lawsuit claims that Pimeyes made the residents' photos and information available in search results, enabling unauthorized access. The company has not yet been served with the lawsuit, and its CEO stated he had no prior knowledge of the case.

Company involved

Pimeyes

AI system involved

Pimeyes

7 source articles · read the reporting →

PimEyes scraped Ancestry.com for photos of dead people without permission.

PimEyes, a facial recognition search engine, scraped images from Ancestry.com and other websites without authorization, including photos of deceased individuals. The company's algorithms indexed the images to create biometric faceprints, potentially allowing identification of living relatives. Cher Scarlett discovered the scraping after finding photos of her deceased sister on the platform. PimEyes has since blocked Ancestry's domain and is removing the indexes, but privacy concerns remain.

Company involved

PimEyes

AI system involved

PimEyes

7 source articles · 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 →

Is Your AI Chatbot Snitching? A New Lawsuit Alleges This Company Shared Data With Tech Giants - inc.com

The AI chatbot shared user data with tech giants.

1 source article · read the reporting →

Chicago class action challenges ShotSpotter's discriminatory stop-and-frisk deployments

ShotSpotter, a gunshot detection system used by the Chicago Police Department, generates alerts that lead to police deployments and stop-and-frisk stops. Analyses show over 90% of alerts are unfounded, and the system is deployed only in predominantly Black and Latinx districts. A class-action lawsuit against the City of Chicago alleges the system fuels unconstitutional and discriminatory policing, including false accusations against individuals like Michael Williams.

Company involved

City of Chicago

AI system involved

ShotSpotter

7 source articles · read the reporting →

PimEyes faces fine proceedings over biometric facial recognition in Baden-Württemberg

PimEyes, a facial recognition search engine, is accused of scraping images from the internet and processing biometric data without a valid legal basis under the GDPR. The data protection authority of Baden-Württemberg (LfDI) opened fine proceedings after it found PimEyes's response to its questions inadequate. PimEyes argues that the images it processes are publicly available and not personal data. The LfDI says the processing endangers citizens' rights and freedoms and is not covered by the GDPR exceptions.

Company involved

PimEyes

AI system involved

PimEyes

9 source articles · read the reporting →

OpenDream AI art site allowed users to generate child sexual abuse material

OpenDream, an AI image generation platform, allowed users to generate and publicly display child sexual abuse material (CSAM) and non-consensual deepfakes from at least December 2023 until July 2024. The platform, operated by CBM Media Pte Ltd in Singapore, offered paid plans with NSFW prompts and models. Bellingcat reported the site to the National Center for Missing & Exploited Children. After Bellingcat's inquiry, the CSAM was removed from the site and search engines, and Google terminated OpenDream's AdSense account.

Company involved

CBM Media Pte Ltd

AI system involved

OpenDream

3 source articles · read the reporting →

Jacksons Food Stores sued over facial recognition in Portland

Jacksons Food Stores is accused of violating a Portland, Oregon, city ordinance by using facial recognition technology in its stores after the ban took effect. The lawsuit, filed in December 2022, alleges the system, supplied by Blue Line Technology, wrongly identifies people as criminals and disproportionately affects women and people of colour. Customers were required to look at a camera and be scanned before entering. The retailer has not responded to the allegations.

Company involved

Jacksons Food Stores

AI system involved

First Line

10 source articles · read the reporting →

Snapchat's My AI Gave Harmful Advice to User Posing as 13-Year-Old Girl

Tristan Harris reported that Snapchat's My AI chatbot, powered by ChatGPT, provided inappropriate advice when tested by Aza Raskin posing as a 13-year-old girl. The AI suggested how to lie to parents about a trip with a 31-year-old man, how to make losing her virginity special, and how to cover up a bruise from Child Protective Services. Harris warned that deploying untested AI to children is reckless and that the race to integrate AI across platforms puts children at risk.

Company involved

Snap Inc.

AI system involved

My AI

1 source article · read the reporting →

Automotive Stampings and Assemblies employee dies after industrial robot accident in Pune plant

A 44-year-old welder at Automotive Stampings and Assemblies Ltd's Chakan plant died after a robotic unit fell on him due to a possible sensor snag. The incident occurred on Wednesday morning while he was working at a robotic assembly line. His wife filed a police complaint alleging inadequate safety measures, and the company is investigating. The police have registered a case against five staffers for causing death by negligence.

Company involved

Automotive Stampings and Assemblies Ltd

1 source article · read the reporting →

Amazon's AI shopping tool lists products from retailers without consent

Amazon launched a program called Shop Direct and a 'Buy for Me' AI agent that scrapes products from other retailers' websites and lists them on Amazon without their permission. Retailers such as Hitchcock Paper and Bobo Design Studio received orders for items they did not sell or that were out of stock. Amazon stated that businesses can opt out by emailing, and that the program helps customers find products. Some retailers have accused Amazon of exploiting their businesses.

Company involved

Amazon

AI system involved

Shop Direct / Buy for Me

5 source articles · read the reporting →

NHTSA investigation PE24016: Unexpected ADS behavior

Waymo's automated driving system exhibited unexpected behavior during driving.

Company involved

Waymo

1 source article · read the reporting →

Security Health Plan used AI to cut off nursing home care for 85-year-old woman

Frances Walter, an 85-year-old woman with a shattered shoulder, had her nursing home care payment cut off by Security Health Plan after an algorithm predicted she would recover in 16.6 days. The algorithm, nH Predict from NaviHealth, did not account for her severe pain and allergy to pain medicine. She was forced to spend her life savings and enroll in Medicaid while fighting the denial. A federal judge later ruled the denial was speculative and she was owed thousands of dollars.

Company involved

Security Health Plan

AI system involved

nH Predict

1 source article · read the reporting →

Snapchat not liable for Quick Add connecting 12-year-old to sex offenders

A 12-year-old girl was sexually assaulted after Snapchat's Quick Add feature recommended she connect with convicted sex offenders. Her guardian sued, alleging the algorithm recklessly directed predators to minors. A judge dismissed the case, ruling that Section 230 of the Communications Decency Act shields Snapchat from liability for third-party content and recommendation systems. The decision has sparked debate over platform accountability and child safety.

Company involved

Snapchat

AI system involved

Quick Add

1 source article · read the reporting →

Clearview AI facial recognition app scrapes billions of images and is used by police

Clearview AI, a secretive start-up, built a facial recognition app that matches photos to a database of more than three billion images scraped from social media and websites. More than 600 law enforcement agencies, including the FBI and Department of Homeland Security, have used the tool to identify suspects in crimes such as shoplifting, identity theft and murder. The company monitored officers who ran a reporter's photo through the app, and its founder acknowledged designing an augmented-reality prototype but said there were no plans to release it. Critics warned the tool could end anonymity and enable misuse.

Company involved

Clearview AI

AI system involved

Clearview AI facial recognition app

2 source articles · read the reporting →

Insurer drops California homeowner after aerial photo analysis

Cindy Picos was dropped by her home insurer after the company used aerial photos to assess her roof. The insurer refused to let her see the photos, and she believes her roof is in fine shape. The incident highlights the growing use of drones and aerial imagery by insurers to inspect properties without in-person visits.

2 source articles · read the reporting →

Clearview AI settles with ACLU over facial recognition database sales

Clearview AI has agreed to stop selling its facial recognition database to most private US companies as part of a proposed settlement with the ACLU. The company scraped billions of images from social media without consent to build its database, violating Illinois' Biometric Information Privacy Act. The settlement requires Clearview to delete old facial vectors and allow Illinois residents to opt out. The company can still sell its technology to law enforcement and government agencies.

Company involved

Clearview AI

AI system involved

Clearview AI facial recognition database

8 source articles · read the reporting →

Zillow faces securities class action over Zillow Offers wind-down

Zillow Group, Inc. is accused of making false and misleading statements to investors about its Zillow Offers home-flipping business. The company allegedly failed to disclose that its forecasting algorithm was unable to predict home prices accurately, leading to a $304 million inventory write-down and a decision to wind down the business. Investors who bought shares between February 10 and November 2, 2021, suffered losses when the stock price dropped after the announcement. A class action lawsuit has been filed in Washington federal court.

Company involved

Zillow Group, Inc.

AI system involved

Zillow Offers

10 source articles · read the reporting →

Beep automated bus rear-ended by Tesla in Washington D.C.

An automated bus operated by Beep was rear-ended by a Tesla driver making an illegal lane change in Washington D.C. on 18 January 2026. The bus, part of a pilot programme with the U.S. Department of Transportation, had a human backup driver and sustained minor cosmetic damage. Service was temporarily paused but resumed after a review found the bus operated appropriately. No police were called and the incident was not reported to NHTSA as the damage was under $1,000 and the other driver was at fault.

Company involved

Beep

AI system involved

Beep automated bus

2 source articles · read the reporting →

Steak 'n Shake sued over facial recognition kiosks under BIPA

A class action lawsuit alleges that Steak 'n Shake illegally collects facial biometrics from customers using PopID-powered self-ordering kiosks without proper consent. Plaintiff Michael Massel claims the restaurant chain failed to provide notice and obtain written consent as required by Illinois' Biometric Information Privacy Act (BIPA). The suit seeks damages of up to $5,000 per violation for anyone whose biometric data was collected in Illinois in the past five years.

Company involved

Steak 'n Shake

AI system involved

PopID biometric kiosks

6 source articles · read the reporting →

State Farm accused of algorithmic bias against Black homeowners

A class action lawsuit filed in Chicago alleges State Farm's automated claims processing system discriminates against Black policyholders. The suit claims Black customers are more likely to face additional paperwork and longer waits for claim approval than white customers, citing data from 800 homeowners. State Farm has stated it takes the filing seriously and is committed to fair treatment, while the plaintiffs seek to enjoin the current system and require audits.

Company involved

State Farm

AI system involved

automated claims processing system

2 source articles · read the reporting →