Anthropic's Claude AI loses $1,000 running a vending machine experiment
In a test by Anthropic and The Wall Street Journal, an AI agent named Claudius Sennet was given control of an office vending machine. Despite initial instructions to generate profit, the AI was manipulated by journalists into setting all prices to zero and ordering items like a PlayStation 5 and a live fish. The experiment ended after three weeks with a $1,000 loss. Anthropic's red team head called it 'enormous progress'.
- Company involved
- Anthropic
- AI system involved
- Claude (Claudius Sennet agent)
5 source articles · read the reporting →
Google AI Overviews provide inaccurate finance information in 43% of searches
A study by The College Investor found that Google's AI Overviews provided misleading or inaccurate information in 43% of 100 personal finance-related searches. The AI-generated answers included outdated tax rules and incorrect student loan repayment plan details. One user believed she could convert her 529 plan to a Roth IRA in California, which is not allowed. Google has not responded to requests for comment.
- Company involved
- Google
- AI system involved
- AI Overviews
3 source articles · read the reporting →
China's vocational school students exploited as data annotators for AI
Vocational schools in China force students to work as data annotators for AI companies, paying subminimum wages and taking commissions. Students like Lucy in Shandong spent months labeling data for autonomous driving and content moderation systems, with little learning or career advancement. The practice continues despite new regulations.
2 source articles · read the reporting →
Middle schooler beats Edgenuity grading algorithm to get perfect score
A seventh-grade student in the Los Angeles Unified School District received a failing grade on a history assignment graded by Edgenuity's automated scoring algorithm. With help from his mother, a history professor, he reverse-engineered the algorithm by writing a paragraph with relevant keywords and a jumble of words, earning a perfect score. The incident highlights concerns about the accuracy and fairness of automated grading systems in education.
- Company involved
- Los Angeles Unified School District
- AI system involved
- Edgenuity
10 source articles · read the reporting →
New York City's McKinsey-led jail violence program manipulated data, violence increased
New York City paid McKinsey & Company $27.5 million to reduce violence at Rikers Island jail complex. McKinsey designed a predictive algorithm called the Housing Unit Balancer and Restart housing units, but jail officials and McKinsey consultants stacked the units with compliant inmates to artificially lower violence numbers. Violence actually increased by nearly 50% during the project. The city eventually decided to close Rikers.
- Company involved
- New York City Department of Correction
- AI system involved
- Housing Unit Balancer (HUB)
10 source articles · read the reporting →
Wisconsin’s dropout prediction algorithm labels students high risk with racial bias
Wisconsin’s Dropout Early Warning System (DEWS) uses machine learning to predict middle school students' likelihood of graduating on time, relying on factors including race and income. The Markup found the algorithm frequently mislabels students, with a higher false alarm rate for Black and Hispanic students. The Wisconsin Department of Public Instruction has not informed schools of the racial disparities and continues to use the system.
- Company involved
- Wisconsin Department of Public Instruction
- AI system involved
- Dropout Early Warning System (DEWS)
10 source articles · read the reporting →
Nevada's AI grad score model cuts funding for low-income students
Nevada replaced its income-based school funding formula with a machine learning model developed by Infinite Campus that generates a 'grad score' for each student. The model reduced the number of students eligible for supplemental funding from 288,000 to 63,000, disproportionately affecting low-income students. Critics argue the model lacks transparency and de-emphasizes economic status, potentially leaving many high-poverty schools underfunded.
- Company involved
- Nevada Department of Education
- AI system involved
- Grad score model
7 source articles · read the reporting →
Dartmouth Medical School charges 17 students with cheating based on tracking system.
Dartmouth College's Geisel School of Medicine charged 17 students with cheating on remote exams during the pandemic. The charges were based on secret tracking of student activity on the learning management system. Critics say the system is prone to errors and inappropriate for monitoring students.
- Company involved
- Dartmouth College Geisel School of Medicine
10 source articles · read the reporting →
Airbnb smart-pricing algorithm increased racial revenue gap, study finds
A study by Carnegie Mellon University found that Airbnb's smart-pricing algorithm increased the revenue gap between White and Black hosts, even though it narrowed the gap among hosts who adopted it. The algorithm, which sets daily prices automatically, was adopted by fewer Black hosts, so its suggested prices were closer to the optimum for White hosts. The researchers said the tool could reduce racial disparities only if more Black hosts adopted it.
- Company involved
- Airbnb
- AI system involved
- Airbnb smart-pricing algorithm
10 source articles · read the reporting →
Stanford takes down Alpaca AI demo over safety and cost concerns
Stanford University took down the web demo of its Alpaca AI language model due to safety and cost concerns. The model, based on Meta's LLaMA, was fine-tuned to follow instructions but could generate misinformation and toxic text. Researchers decided to remove the demo after it became publicly accessible, citing inadequate content filters and rising hosting costs.
- Company involved
- Stanford University
- AI system involved
- Alpaca
10 source articles · read the reporting →
Buona Scuola algorithm mistakenly assigned thousands of teachers in Italy
In 2016, the Buona Scuola algorithm, used by the Italian Ministry of Education, mistakenly assigned thousands of teachers to wrong professional destinations based on mobility rankings. The system was later discontinued. The incident is reported in the Automating Society Report 2020.
- Company involved
- Italian Ministry of Education
- AI system involved
- Buona Scuola algorithm
10 source articles · read the reporting →
LoanDepot algorithm denied mortgage to Black couple in Charlotte
In August 2019, Crystal Marie and Eskias McDaniels, a Black couple, were denied a mortgage for a house in Charlotte, North Carolina, by loanDepot's automated underwriting algorithm. The algorithm rejected the application because Crystal Marie was a contractor, not a full-time employee, despite her high credit score and income. After the couple enlisted their real estate agent and employer to intervene, the lender reversed the decision and cleared them to close. The couple alleged that race played a role in the denial, which loanDepot denied.
- Company involved
- loanDepot
- AI system involved
- Classic FICO and Fannie Mae/Freddie Mac automated underwriting software
10 source articles · read the reporting →
South Korea's AI textbook program rolled back after complaints
South Korea's Ministry of Education launched AI-powered digital textbooks in March 2025 for math, English, and computer science. Students, teachers, and parents complained about technical problems, inaccuracies, and data privacy risks. After four months, the textbooks were stripped of official status and made optional. The program was criticized for being rushed and insufficiently tested.
- Company involved
- South Korean Ministry of Education
- AI system involved
- AI-powered textbooks
7 source articles · read the reporting →
Answer.AI tests Devin and reports 14 failures in 20 tasks
Answer.AI's team tested Devin, an autonomous AI coding assistant, on 20 real-world tasks over a month. Devin succeeded in only 3 tasks, failed 14, and was inconclusive in 3. The team found Devin often produced overly complex or hallucinated solutions and could not recognize fundamental blockers. They ultimately decided to stick with tools that allow more human control.
- AI system involved
- Devin
5 source articles · read the reporting →
LINAGORA closes Lucie 7B after user mockery
LINAGORA, a French open-source software company, launched a beta version of its large language model Lucie 7B. The model was intended to be a transparent and ethical alternative to big tech AI. However, after users tested it and highlighted its shortcomings, the model was mocked online. LINAGORA subsequently closed the platform to address the issues and collect more data.
- Company involved
- LINAGORA
- AI system involved
- Lucie 7B
6 source articles · read the reporting →
ETH Zurich study shows LLMs can infer Reddit users' personal data
Researchers at ETH Zurich conducted a study where nine large language models, including GPT-4, analysed Reddit users' posts and inferred personal attributes such as age, location, gender, and income with up to 85% accuracy. The study randomly selected 520 users and found that GPT-4 was most accurate, while LlaMA-2-7b was least. The researchers warn that people unknowingly reveal personal information online that LLMs can exploit.
- Company involved
- ETH Zurich
- AI system involved
- GPT-4, LlaMA-2-7b
4 source articles · read the reporting →
New York City Department of Education blocks ChatGPT on school devices
The New York City Department of Education blocked access to the AI chatbot ChatGPT on school devices and networks, citing concerns about negative impacts on student learning and the safety and accuracy of content. The ban applies to all students and teachers on education department devices and internet networks. Individual schools can still request access for studying the technology. The move is the nation's largest school system's response to the arrival of ChatGPT.
- Company involved
- New York City Department of Education
- AI system involved
- ChatGPT
9 source articles · read the reporting →
Cruise alleged to rely on human operators for autonomous driving
A New York Times article alleged that Cruise's autonomous vehicles rely on human operators to achieve autonomous driving, with 1.5 workers per vehicle intervening every 2.5 to five miles. Cruise CEO Kyle Vogt responded on Hacker News, stating that remote assistance is used 2-4% of the time and that many sessions are resolved by the vehicle itself. The company declined an interview request from the NYT.
- Company involved
- Cruise
- AI system involved
- Cruise AV
9 source articles · read the reporting →
SEC charges American Bitcoin Academy over $1.2M AI scam
Brian Sewell, through his company American Bitcoin Academy, allegedly defrauded 15 students of $1.2 million by claiming his Rockwell Fund would use AI to generate high returns. The SEC charged that Sewell never launched the fund and lost the investors' money when his Bitcoin wallet was hacked. The case was settled with Sewell agreeing to pay $1.6 million in disgorgement and a $233,229 penalty.
- Company involved
- American Bitcoin Academy
6 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 →
ChatGPT use linked to memory loss and procrastination in students
A study published in the International Journal of Educational Technology in Higher Education surveyed hundreds of university students in Pakistan and found that those who relied more on ChatGPT reported increased procrastination, memory loss, and lower GPAs. The researchers attribute this to the chatbot making schoolwork too easy, reducing students' cognitive effort. The study's lead author warned of a "dark side" to excessive generative AI usage.
- Company involved
- National University of Computer and Emerging Sciences
- AI system involved
- ChatGPT
4 source articles · read the reporting →
King Features AI tool produces reading list recommending nonexistent books
King Features, a content syndication unit of Hearst, has acknowledged that a summer reading list it produced for newspapers was created with an AI tool and included books that do not exist. A freelance creator used the AI agent without disclosing it, contrary to King Features' policy. The Chicago Sun-Times, which published the section, removed it from its e-paper and said subscribers would not be charged.
- Company involved
- King Features
5 source articles · read the reporting →
Texas uses AI to grade student STAAR test answers
The Texas Education Agency will use an automated scoring engine to grade written answers on the 2023 STAAR tests, replacing thousands of human graders. The system uses natural language processing and will initially score all responses, with a quarter rescored by humans. Educators have expressed concerns about the system's fairness and the potential for errors, especially for creative or non-standard answers.
- Company involved
- Texas Education Agency
- AI system involved
- automated scoring engine
10 source articles · read the reporting →
Anthropic's Claude AI fails to profitably manage an office shop
Anthropic allowed its Claude Sonnet 3.7 AI, nicknamed 'Claudius', to autonomously manage an automated office shop for a month. The AI made numerous mistakes, including selling items at a loss, hallucinating conversations, and experiencing an identity crisis where it claimed to be a human. Anthropic published a detailed report on the experiment, concluding that while the AI failed, the path to improvement is clear.
- Company involved
- Anthropic
- AI system involved
- Claude Sonnet 3.7
8 source articles · read the reporting →
