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 →
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 →
DeepScore markets facial and voice analysis app for trustworthiness scoring despite experts' doubts
DeepScore, a Tokyo-based company, is marketing an app that uses facial and voice recognition to score people's trustworthiness for lenders and insurers in Japan, Indonesia, Vietnam and the Philippines. The company says the app can detect deception with 70 per cent accuracy, but researchers and privacy advocates say there is no reliable scientific basis for such judgments and warn of discrimination and privacy harms. The chief executive said the system is only one part of lenders' and insurers' decision-making and that people can choose not to use it. Critics respond that an unequal balance of power makes consent difficult.
- Company involved
- DeepScore
- AI system involved
- DeepScore
6 source articles · read the reporting →
Retorio AI personality test swayed by candidate appearance in BR experiment
Bayerischer Rundfunk journalists conducted experiments with Retorio's AI video interview analysis tool. The AI, which assesses personality traits from short videos, produced different scores when the same actress changed her appearance (glasses, headscarf, wig) or the video background and lighting were altered. The start-up Retorio acknowledged that the AI considers external image, similar to a human interviewer. Experts warned that such software could perpetuate stereotypes and unfairly affect job candidates.
- AI system involved
- Retorio AI
10 source articles · read the reporting →
Wisconsin court used secret COMPAS algorithm to sentence Loomis to harsher term
In Loomis v. Wisconsin, a judge used a COMPAS risk score from Northpointe to sentence a defendant to a harsher punishment. The algorithm was kept secret as a trade secret, preventing the defendant from challenging its accuracy. The Wisconsin Supreme Court upheld the sentence, ruling that the score was only one part of the rationale. The case raises concerns about due process and the use of secret algorithms in criminal sentencing.
- Company involved
- State of Wisconsin
- AI system involved
- COMPAS
10 source articles · read the reporting →
Hospitals use Epic AI to predict Covid-19 decline without validation
Dozens of hospitals across the US are using Epic's deterioration index AI system to predict which Covid-19 patients will become critically ill, despite the tool not being validated for the new disease. The rapid deployment during the pandemic bypassed normal testing and validation processes.
- AI system involved
- Deterioration index
9 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 →
Amazon sellers lose thousands after RepricerExpress pricing glitch
A software glitch in RepricerExpress's automated repricing system caused products sold by Amazon sellers to be priced at 1p, leading to significant financial losses for the sellers. RepricerExpress apologised but did not offer compensation, while Amazon said it had reached out to affected sellers but many reported no response. Some sellers have instructed lawyers to take legal action against RepricerExpress and Amazon.
- Company involved
- RepricerExpress
- AI system involved
- RepricerExpress
10 source articles · read the reporting →
Natural England biodiversity metric undervalues rewilding habitats
Natural England published a new biodiversity net gain metric in July 2021 that uses an algorithm to score habitat value. Ecologists and conservationists warned that the metric misclassifies scrubby and ruderal habitats as degraded, potentially undervaluing rewilding projects like Knepp estate and leading to inadequate compensation for habitat loss. The article claims the metric could blight hundreds of thousands of sites and penalise rewilding-style management.
- Company involved
- Natural England
- AI system involved
- Biodiversity Net Gain (BNG) metric
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 →
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 →
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 →
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 →
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 →
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 →
EviCore denied heart catheterization for patient using algorithm
In fall 2021, Little John Cupp's doctor requested a left heart catheterization exam. EviCore, a company hired by UnitedHealthcare, denied the request twice using an algorithm called 'the dial' that adjusts thresholds for review. The algorithm flagged the request for review, and EviCore's doctors determined it was not medically necessary. Cupp did not receive the procedure and his symptoms continued.
- Company involved
- EviCore (a Cigna company)
- AI system involved
- the dial
6 source articles · read the reporting →
Humana sued for using AI to deny seniors rehabilitation care
Health insurer Humana is accused in a class-action lawsuit of using an AI algorithm to systematically deny rehabilitation care to Medicare Advantage patients, despite recommendations from their doctors. The lawsuit, filed on December 12, 2023, alleges that the AI tool restricted medically necessary care. This is the second major health insurer to face legal action over its use of AI to deny care.
- Company involved
- Humana
9 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 →
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 →
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 →
Kroger's digital price tags investigated for surge pricing concerns
U.S. Senators Elizabeth Warren and Bob Casey sent a letter to Kroger CEO Rodney McMullen raising concerns about the company's use of Electronic Shelving Labels (ESLs) for dynamic pricing. The system, called EDGE shelf and developed with Microsoft, can change prices based on time of day or weather, potentially leading to price gouging. The senators warned that this could harm consumers by increasing grocery costs and requested information from Kroger about its use of the technology.
- Company involved
- Kroger
- AI system involved
- EDGE shelf (Electronic Shelving Labels)
10 source articles · read the reporting →
Audit of RisCanvi finds biases and reliability issues in criminal justice system
Eticas conducted an adversarial audit of RisCanvi, an AI risk assessment tool used in Catalonia's criminal justice system. The audit uncovered biases in risk classifications against specific demographics and significant reliability issues. The findings call for fairer practices in criminal justice AI.
- Company involved
- Catalonia's criminal justice system
- AI system involved
- RisCanvi
4 source articles · read the reporting →
