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 →
Kaedim used human artists instead of AI for 3D model generation
Kaedim, an AI startup that claimed to use machine learning to convert 2D illustrations into 3D models, actually used human artists to produce the models, according to sources. The company's founder was featured in Forbes 30 Under 30 for the technology. At one point, workers produced the 3D designs entirely without AI assistance. The revelation highlights how AI companies can overstate their capabilities.
- Company involved
- Kaedim
- AI system involved
- Kaedim
10 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 →
DeepSeek exposed user data via open ClickHouse database
Cloud security firm Wiz discovered a ClickHouse database belonging to DeepSeek that was open to the internet without authentication, containing over a million lines of logs with chat histories, secret keys and backend details. Wiz disclosed the breach to DeepSeek, which promptly locked down the database. The incident highlights security risks in rapidly deploying AI services.
- Company involved
- DeepSeek
- AI system involved
- DeepSeek-R1
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 →
Presto Automation uses off-site human agents to double-check AI drive-thru orders
Presto Automation Inc, which markets an AI voice assistant for drive-thru ordering, used off-site human agents in countries including the Philippines to double-check orders in more than 70% of customer interactions, according to SEC filings reported by Bloomberg. The company told Bloomberg that the process helps train its system and should reduce human intervention over time. Presto's drive-thru AI is used in more than 400 restaurants, including Del Taco, Carl's Jr and Checkers, and its stock fell more than 10% after the reports.
- Company involved
- Presto Automation Inc.
8 source articles · read the reporting →
Judge rules lawsuit over UnitedHealth’s AI care denials can move forward - STAT
The system denied necessary medical care to Medicare Advantage beneficiaries.
- Company involved
- UnitedHealth Group
1 source article · read the reporting →
Google Slapped With Digital Privacy Class Action Over Use of Customer Service AI Product - Law.com
The system intercepted and analyzed customer service calls of Home Depot customers without their consent.
- Company involved
- Google
- AI system involved
- Cloud Contact Center AI
1 source article · 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 →
CJEU rules Dun & Bradstreet must explain automated credit decisions under GDPR
A customer was refused a mobile phone contract because of an automated credit assessment by Dun & Bradstreet Austria. The customer took the case to court, which found that Dun & Bradstreet had infringed the GDPR by failing to provide meaningful information about the logic involved. The CJEU ruled that data controllers must explain automated decisions and that trade secrets cannot automatically override the right of access.
- Company involved
- Dun & Bradstreet Austria GmbH
7 source articles · read the reporting →
Delta uses AI from Fetcherr for domestic ticket pricing
Delta Air Lines is using generative AI from Fetcherr to determine some domestic flight prices, currently covering 3% of its network with plans to reach 20% by end of 2025. Democratic senators expressed concern that the AI could be used for individualized pricing based on personal data, leading to higher fares. Delta denies using personal data in pricing and states it complies with regulations. No actual harm has been reported.
- Company involved
- Delta Air Lines
- AI system involved
- Fetcherr
8 source articles · read the reporting →
Ask Delphi AI trained on Reddit posts gave unethical answers including endorsing genocide
Ask Delphi, an AI system designed to answer ethical questions, was trained on Reddit posts and crowdworker judgments. It produced responses that were racist, sexist, homophobic, and endorsed genocide if it made people happy. Researchers updated the system three times and added warnings. Critics argue that teaching AI ethics is fundamentally flawed.
- AI system involved
- Ask Delphi
8 source articles · read the reporting →
DWP algorithm approved Kickstart gateways with no trading history or based abroad
An FE Week investigation found that the Department for Work and Pensions (DWP) approved dozens of companies as Kickstart gateways through automated due diligence checks using the Cabinet Office Spotlight Tool, although some had little or no trading history or were based abroad. The DWP said gateways were subject to stringent checks and later said human checks were also used. After the findings were shared with the Treasury and the DWP, the department stopped taking gateway applications and scrapped the requirement for small employers to use gateways from 3 February.
- Company involved
- Department for Work and Pensions
- AI system involved
- Cabinet Office Spotlight Tool
3 source articles · read the reporting →
Microsoft Dynamics 365 Field Service AI singles out workers in performance predictions
A report by Cracked Labs found that Microsoft's Dynamics 365 Field Service software uses AI to generate performance metrics and predict task durations, singling out individual workers. The AI predictions can be influenced by the worker's identity, such as increasing or decreasing estimated duration. Microsoft stated the system is not intended for employment decisions and is not a surveillance tool, but the report raises concerns about potential misuse for worker monitoring.
- Company involved
- Microsoft
- AI system involved
- Dynamics 365 Field Service
6 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 →
ChatGPT Health fails to direct 52% of medical emergencies to emergency care in study
A study published in Nature Medicine found that OpenAI's ChatGPT Health tool under-triaged 52% of true medical emergencies, directing users to non-urgent care instead of emergency departments. The AI also misclassified 35% of non-urgent cases. Researchers at Mount Sinai conducted 960 tests across 60 clinical scenarios, noting the tool's susceptibility to anchoring bias when symptoms were minimized. The study highlights potential safety concerns as millions use AI for health guidance.
- Company involved
- OpenAI
- AI system involved
- ChatGPT Health
4 source articles · read the reporting →
US Central Command used Anthropic's Claude in Iran airstrikes after Trump ban.
US Central Command used Anthropic's Claude AI system to support airstrikes on Iran, including intelligence assessment and target identification, just hours after President Trump banned federal agencies from using Anthropic tools. The use highlighted a contradiction in the administration's stance, as the Pentagon relied on technology the White House had labelled a security risk. Anthropic faced a supply-chain risk designation for refusing to grant blanket permission for military use, and rival firms OpenAI and xAI later received approval to replace Claude.
- Company involved
- US Central Command (Centcom)
- AI system involved
- Claude
4 source articles · read the reporting →
SoftBank's Pepper robot fails at multiple customer service jobs
SoftBank's humanoid robot Pepper has failed at various jobs including entertaining nursing home residents, greeting bank guests, and reciting scriptures at funerals. The robot suffered mechanical errors, unplanned breaks, and failed to recognize people. Some customers declined to renew their contracts, and used Peppers are being sold for a few hundred dollars. Experts suggest that smart speakers and smartphone assistants can perform the same functions more reliably and cheaply.
- AI system involved
- Pepper
3 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 →
Ola drivers file GDPR lawsuit over algorithmic management and data access
Two ride-hailing drivers are taking Ola to court in Amsterdam, alleging the company violated GDPR data access rights by not providing full personal data, including GPS and ratings information. They argue this hinders their ability to challenge algorithmic decisions, such as a driver who had pay docked after Ola's system incorrectly flagged trips as invalid. The case, supported by the App Drivers & Couriers Union, seeks to compel Ola to comply with data protection law and faces fines for non-compliance. Ola says it has not received notification and complies with all applicable laws.
- Company involved
- Ola
- AI system involved
- Guardian
1 source article · read the reporting →
Pankaj says his AI kitchen monitor caught the cook taking fruit and she was fired
Pankaj posted on X that he had set up an AI-powered kitchen monitor, using Claude Haiku 4.5 as its vision model, to watch his cook while she worked. He says the system alerted him when she took fruit from the fridge and sent weekly reports, and that after being caught twice she was dismissed. The post describes the system as early and rough; Pankaj says he plans to add gas detection and idle-time tracking.
- Company involved
- Pankaj
- AI system involved
- AI roommate
5 source articles · read the reporting →
Perplexity AI's Pages feature accused of plagiarizing Forbes reporting
Forbes journalist John Paczkowski accused Perplexity AI's new "Perplexity Pages" feature of ripping off his reporting on Eric Schmidt's drone project. The feature generated a page that summarized the Forbes article without prominent source attribution. Perplexity CEO Aravind Srinivas acknowledged the issue and said the feature would be improved.
- Company involved
- Perplexity AI
- AI system involved
- Perplexity Pages
10 source articles · read the reporting →
