Where automated decisions went wrong

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.

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DevTernity conference cancelled after fake women speakers exposed

The DevTernity software developer conference was cancelled after allegations that organiser Eduards Sizovs added fake women speakers to the lineup. Sizovs admitted at least one profile, 'Anna Boyko', was an auto-generated 'demo persona' that appeared on the site by mistake. The conference was scheduled to begin December 7 but was called off after several speakers withdrew. Sizovs denied wrongdoing and said he had fixed the code and written a test to prevent a recurrence.

Company involved

DevTernity

9 source articles · read the reporting →

BC Tribunal Confirms Companies Remain Liable for AI Chatbot-Created Information - Lexology

The AI chatbot provided inaccurate information to a user.

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Air Canada liable for chatbot's misleading bereavement advice

Air Canada was found liable by the B.C. Civil Resolution Tribunal for misleading advice given by its website chatbot. The chatbot told a passenger they could retroactively claim a bereavement rate, but the airline later denied the claim. The tribunal ordered Air Canada to pay $812 in compensation, noting the airline's argument that the chatbot was a separate legal entity was 'remarkable'.

Company involved

Air Canada

AI system involved

Air Canada chatbot

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FTC settles with DoNotPay over deceptive AI lawyer claims

The FTC took action against DoNotPay, a company that claimed to offer an AI service that was 'the world's first robot lawyer.' The company promised to generate legal documents and replace human lawyers, but the FTC alleged it failed to test its AI output and did not hire any attorneys. DoNotPay agreed to a settlement requiring it to pay $193,000 and notify consumers about the limitations of its service.

Company involved

DoNotPay

AI system involved

DoNotPay

7 source articles · read the reporting →

Spanish police bust $20M AI-powered investment scam

Spanish law enforcement, collaborating with international authorities, dismantled a $20 million investment scam that used AI-driven algorithms to deceive individuals and organizations. Six suspects were detained and assets, including luxury cars and cryptocurrency, were seized. The article does not report any compensation for victims.

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Scammer sold fake AI-generated Frank Ocean tracks for thousands

A scammer using the handle mourningassasin sold fake Frank Ocean tracks generated by AI to music collectors on underground forums, making around $13,000 CAD. The tracks were created using a model trained on high-quality vocal snippets of Frank Ocean. The scammer admitted the tracks were AI-generated after being confronted by forum administrators, and was banned from the forum.

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AAIP investigates Worldcoin's personal data processing in Argentina

The Argentine Agency for Access to Public Information (AAIP) has initiated an investigation into the data processing practices of Worldcoin in Argentina. The investigation focuses on the collection, storage, and use of biometric data, including facial and iris scans, carried out in several cities in exchange for financial compensation. The AAIP aims to verify compliance with the country's data protection law, Ley 25.326, regarding sensitive data handling.

Company involved

Worldcoin (Fundación Worldcoin)

AI system involved

Worldcoin

8 source articles · read the reporting →

Actor's AI-generated avatar used in Venezuelan propaganda campaign

An actor's digital replica was generated without consent and used to spread fake news in a Venezuelan propaganda campaign. The actor turned to Equity for help, but current laws provide few protections. Equity is campaigning for new personality rights to prevent such exploitation.

9 source articles · read the reporting →

Guangzhou court finds AI company infringed Ultraman copyright

The Guangzhou Internet Court ruled on 8 February 2024 that an unnamed AI company infringed the copyright and adaptation rights of the plaintiff, the exclusive licensee of the Ultraman series images in China. The defendant operated a website offering AI conversation and AI-generated painting services, accessible only to paying members. The plaintiff alleged that the defendant used its Ultraman images without authorisation to train its model and generate substantially similar images. The court ordered the defendant to pay 10,000 yuan ($1,389) in compensation.

Company involved

unnamed AI company

AI system involved

AI conversation and AI-generated painting website

9 source articles · read the reporting →

Anthropic ordered to respond over alleged AI-hallucinated citation in court filing

A US federal magistrate judge has ordered Anthropic to respond to music publishers' claim that a court filing by Anthropic data scientist Olivia Chen cited a fictitious academic article that may have been generated by Anthropic's AI tool Claude. The publishers' lawyer said he had confirmed with the named author and journal that the article did not exist. Anthropic's lawyer disputed this, saying it was a mis-citation rather than an AI hallucination. The filing was made in an ongoing copyright case brought by Universal Music Group, Concord, and ABKCO against Anthropic over the use of song lyrics to train Claude.

Company involved

Anthropic

AI system involved

Claude

5 source articles · read the reporting →

Deepfake AI video of Macri spread on election day

On May 18, 2025, a deepfake AI video falsely depicting former Argentine President Mauricio Macri endorsing a candidate was spread on social media by pro-Milei trolls. Macri denounced the video as an attempt at electoral fraud. The General Prosecutors' Office requested X to remove the video and preserve IP addresses. The incident highlights the use of AI-generated misinformation in elections.

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Andrea Bartz and others sue Anthropic PBC over copyright

In August 2024, Andrea Bartz, Kirk Wallace Johnson and Charles Graeber filed a lawsuit against Anthropic PBC in the US District Court for the Northern District of California. The complaint alleges copyright infringement under 17 U.S.C. § 501. Anthropic waived service, and the case was assigned to the court.

Company involved

Anthropic PBC

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Prosecraft shut down after using authors' books without consent for AI analytics

Prosecraft, a fiction analytics site, used the full text of over 25,000 books without author consent to train its AI algorithms and provide writing statistics. Authors protested on social media, demanding removal of their works. The developer, Benji Smith, subsequently shut down the site and wrote a blog post explaining his actions.

Company involved

Prosecraft

AI system involved

Prosecraft

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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 →

Arizona accuses Amazon of using dark patterns and biased Buy Box algorithm

The Arizona Attorney General filed two lawsuits against Amazon on May 15, 2024. One lawsuit alleges that Amazon used deceptive design tricks (dark patterns) to prevent users from canceling Prime subscriptions. The other alleges that Amazon's Buy Box algorithm is biased in favor of Amazon's own products and Fulfillment by Amazon sellers, causing consumers to overpay. Amazon denied the allegations, stating that the lawsuits are based on a misunderstanding.

Company involved

Amazon

AI system involved

Buy Box algorithm

6 source articles · read the reporting →

Outabox hack exposes biometric data of patrons at bars, clubs and casinos

Hackers claiming to be former employees published a website allowing searches of Outabox's facial recognition database, exposing biometric and other sensitive data of patrons used for age verification at bars, clubs and casinos. The Surveillance Technology Oversight Project warns that the breach demonstrates the danger of facial recognition for age verification. S.T.O.P. has launched a campaign to ban facial recognition in public accommodations.

Company involved

Outabox

8 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 →

Glovo driver died in crash, then received automated firing email

Sebastian Galassi, a 26-year-old Glovo delivery driver, died in a traffic collision in Florence, Italy, on 1 October 2022. The following day, his family received an automated email from Glovo stating his account had been deactivated for non-compliance. Glovo claimed the message was sent in error when suspending the account to protect his identity, and the company apologised and offered to pay some funeral costs.

Company involved

Glovo

AI system involved

Automated account deactivation system

2 source articles · read the reporting →

Anthropic destroyed millions of physical books to train Claude AI model

Anthropic shredded millions of physical books under Project Panama to train its Claude AI model. Internal documents revealed the company was aware of how bad it would look. A lawsuit by authors led to a $1.5 billion settlement. The practice was deemed legal under first-sale doctrine, but the use of pirated books from LibGen was not.

Company involved

Anthropic

AI system involved

Claude

5 source articles · read the reporting →

Robby Starbuck Sues Meta for AI Defamation

Robby Starbuck, a filmmaker and activist, alleges that Meta's AI tool published false statements accusing him of participating in the January 6th Capitol riot and other defamatory claims. Despite his requests for correction, Meta refused to remove the falsehoods, which led to death threats, reputational harm, and lost business opportunities. Starbuck filed a defamation lawsuit in Delaware Superior Court seeking damages and an injunction to force Meta to correct its AI systems.

Company involved

Meta Platforms, Inc.

AI system involved

Meta AI

2 source articles · read the reporting →

Ukrainian Hacker Pleads Guilty to Operating OnlyFake AI ID Scam Site

Yurii Nazarenko, a Ukrainian national, pleaded guilty to running OnlyFake, an AI-powered website that generated and sold over 10,000 counterfeit identification documents globally. The site allowed users to create realistic fake IDs, including driver's licenses and passports, to bypass identity verification at banks and cryptocurrency exchanges. Nazarenko faces up to 15 years in prison and agreed to forfeit $1.2 million. Sentencing is scheduled for June 2026.

Company involved

OnlyFake

AI system involved

OnlyFake

3 source articles · read the reporting →

Italian DPA fines Municipality of Trento over AI surveillance projects

The Italian data protection authority (Garante) fined the Municipality of Trento €50,000 for two research projects, Marvel and Protector, that used AI to analyze video, audio, and social media data for public security purposes. The projects involved automated detection of risk events from surveillance cameras and microphones in public spaces, as well as monitoring social media for hate speech. The Garante found multiple violations of privacy law, including lack of a valid legal basis, insufficient anonymization, failure to conduct a data protection impact assessment, and inadequate transparency. The municipality is required to delete the unlawfully processed data.

Company involved

Comune di Trento

AI system involved

Marvel and Protector

9 source articles · read the reporting →

Italian Data Protection Authority Blocks Replika Chatbot Over Risks to Minors

On February 2, 2023, the Italian Data Protection Authority (Garante) issued an urgent order blocking the AI chatbot Replika from processing personal data of Italian users. The Garante found that Replika lacked effective age verification, allowing minors to potentially receive inappropriate content including sex-related replies, and that its privacy policy violated GDPR transparency requirements. The U.S.-based controller was given 20 days to report on compliance measures and may challenge the order within 60 days.

AI system involved

Replika

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