Where automated decisions went wrong

CanLII sues Caseway AI for scraping legal database

The Canadian Legal Information Institute (CanLII) has filed a lawsuit in British Columbia Supreme Court against Caseway AI, alleging that the company's AI chatbot scraped approximately 3.5 million records from CanLII's database in bulk, violating its terms of service and copyright. CanLII claims it adds value to public court records through hyperlinks and corrections, which it says constitute protected copyrighted work. Caseway AI argues the information is public and accessible elsewhere, and that it did not use CanLII's enhancements. The lawsuit was settled in March 2026, with terms undisclosed.

Company involved

Canadian Legal Information Institute (CanLII)

AI system involved

Caseway

5 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 →

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 →

California regulator accuses Maxpread Technologies of using AI-generated fake CEO to scam investors

Maxpread Technologies allegedly used an AI-generated avatar to pose as its CEO in a YouTube video to deceive investors. The California DFPI issued cease and desist letters to Maxpread and four other companies for offering unqualified securities and making false promises. The regulator claims the companies promised high daily returns using AI trading, but these claims were false. Maxpread did not respond to requests for comment.

Company involved

Maxpread Technologies

8 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 →

Elsevier's Journal of Human Evolution editors resign over AI use in production

All but one member of the editorial board of Elsevier's Journal of Human Evolution resigned in December 2024, citing concerns including the use of AI in production without informing the board. The AI system caused formatting errors and reversed accepted papers, requiring extensive oversight. Elsevier denied the errors were due to AI and said they had reverted to the previous system. The editors allege that AI processing continues to be used and undermines editorial independence.

Company involved

Elsevier

AI system involved

AI production workflow

5 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 →

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 →

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 →

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 →

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 →

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 →

Evolv weapon detection system falsely flags Chromebooks as weapons

Evolv's AI-based weapon detection system has been reported to falsely identify certain Chromebook laptops as weapons, causing false alarms at security checkpoints. The system is used in venues such as schools. The article discusses the flaw and user experiences. No official response from Evolv has been mentioned.

Company involved

Evolv

AI system involved

Evolv

5 source articles · read the reporting →

Manchester Arena's Evolv weapon scanners fail to detect some knives, report finds

ASM Global's use of Evolv Express AI weapon scanners at Manchester Arena has been questioned after a private report found the system failed to detect large knives in 42% of walkthroughs. The report, produced by NCS4 and obtained by IPVM, also suggested the scanners may miss some bombs and components. Evolv did not dispute the findings but said it communicates capabilities and limitations to customers. ASM Global declined to comment on security matters.

Company involved

ASM Global

AI system involved

Evolv Express

5 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 →

Paradox security vulnerability exposed candidate data to researchers

On June 30, 2025, security researchers discovered a vulnerability in Paradox's test account that allowed access to chat interaction records. The researchers viewed five candidates' personal information including names, email addresses, phone numbers, and IP addresses. Paradox fixed the issue within hours and stated that no data was leaked publicly. The company has since implemented new security measures.

Company involved

Paradox

AI system involved

Paradox conversational AI platform

10 source articles · read the reporting →

Thomson Reuters wins copyright lawsuit against AI startup Ross Intelligence

In 2020, Thomson Reuters filed a copyright lawsuit against legal AI startup Ross Intelligence, alleging that Ross reproduced materials from its Westlaw legal research service. In February 2025, a US District Court judge ruled in Thomson Reuters' favor, finding that Ross infringed copyright and that fair use did not apply. Ross Intelligence had shut down in 2021 due to litigation costs.

Company involved

Ross Intelligence

AI system involved

Ross Intelligence

4 source articles · read the reporting →

42,900 OpenClaw AI agents exposed, 15,200 vulnerable to RCE

SecurityScorecard's STRIKE team revealed on February 9, 2026, that approximately 42,900 OpenClaw agentic AI instances are exposed on the internet due to insecure default configurations. Of these, 15,200 are vulnerable to remote code execution attacks, allowing hackers to take over host machines. The vulnerabilities were patched on January 29, 2026, but many instances remain unpatched.

AI system involved

OpenClaw

5 source articles · read the reporting →

TransUnion AI tenant screening denied 75-year-old man apartment due to mistaken littering conviction

Chris Robinson, then 75, applied for a senior living apartment in California. The property manager used an AI screening program from TransUnion, which assigned him a low score based on a mistaken conviction for littering that belonged to a different person with the same name in Texas. Robinson lost the apartment and his application fee. A federal class-action lawsuit against TransUnion moved toward a $11.5 million settlement in 2023.

10 source articles · read the reporting →

PredictiveHire builds AI to predict job hopping from interviews

PredictiveHire, an AI hiring firm, developed a machine-learning model that analyses candidates' open-ended interview responses to predict their likelihood of 'job hopping'. The company used data from 45,899 applicants to build the 'flight risk' assessment, which it advertises as coming soon. Scholars warn that such tools can suppress wages by screening out workers who might seek better pay or conditions, continuing a historical trend of using personality tests to identify potential labour organisers.

Company involved

PredictiveHire

AI system involved

Phai

1 source article · read the reporting →

SEC charges YouPlus and CEO with defrauding investors

The SEC charged machine-learning startup YouPlus and its CEO Shaukat Shamim with defrauding investors. Shamim allegedly made false statements about the company's revenue and customer numbers, including providing falsified bank statements. The scheme unravelled when Shamim confessed to investors that the company had earned less than $500,000 and had only four paying customers since 2013. The SEC is seeking permanent injunctions, civil penalties, and an officer-and-director bar.

Company involved

YouPlus

AI system involved

YouPlus machine-learning tool

1 source article · read the reporting →

Activision Blizzard uses generative AI, lays off artists

Activision Blizzard, the video game publisher behind Call of Duty, used generative AI tools like Midjourney and Stable Diffusion for concept art and marketing. In late January 2024, Microsoft laid off 1,900 Activision Blizzard and Xbox employees, including many 2D artists. Employees allege that remaining concept artists were forced to use AI, and that AI-generated cosmetics were sold in the game store. The company did not comment.

Company involved

Activision Blizzard

AI system involved

Midjourney, Stable Diffusion, GPT-3.5

4 source articles · read the reporting →