Where automated decisions went wrong

Good Daily operates AI-generated local news network without disclosure

Good Daily Inc., run by Matthew Henderson, operates hundreds of AI-generated local newsletters across the U.S. that aggregate and summarize news from local outlets. The newsletters use large language models without disclosing this to subscribers, and feature fabricated testimonials. Some readers reported being signed up without their consent. Local news outlets have criticized the network for not driving meaningful traffic and for undermining trust.

Company involved

Good Daily Inc.

AI system involved

Good Daily

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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 →

Google seeks dismissal of class-action lawsuit over AI data scraping

Google is facing a proposed class-action lawsuit alleging that it violated the privacy and property rights of millions of internet users by scraping publicly available data to train its AI chatbot, Bard. The lawsuit, filed in July 2023, claims that Google's privacy policy change allowed data scraping for AI training without consent. Google has filed a motion to dismiss, arguing that using publicly available information is not stealing and that the lawsuit threatens generative AI.

Company involved

Google

AI system involved

Bard

5 source articles · read the reporting →

Chattr.ai exposed job applicant data due to insecure Firebase rules

A security researcher discovered that Chattr.ai, an AI hiring system used by many fast food chains, had a Firebase database with insecure security rules. By registering a new user, the researcher gained full read/write access to the database, exposing personal data of job applicants and employees, including names, phone numbers, emails, and some plaintext passwords. The vulnerability was reported to Chattr.ai on 9 January and patched the next day, but the company did not provide further contact or thanks.

Company involved

Chattr.ai

AI system involved

Chattr.ai

6 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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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

8 source articles · read the reporting →

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 →

Lattice cancels plan to give AI digital workers employee records after backlash

Lattice, an HR software company, announced on July 9th that it would give AI digital workers official employee records. After strong backlash from HR professionals and others on LinkedIn, the company canceled the feature on July 12th, stating it 'will not further pursue digital workers in the product.' The feature was intended to manage AI bots such as Devin and Piper, but the company reversed course.

Company involved

Lattice

AI system involved

Lattice

6 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 →

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 →

Meta's cross-check program delays removal of violating content for privileged users

The Oversight Board's policy advisory opinion on Meta's cross-check program found that the system grants certain users, such as business partners and celebrities, additional human review before removing violating content, while ordinary users face immediate removal. This unequal treatment allows potentially harmful content to remain on the platform for days, and Meta has failed to track whether the program improves accuracy. The Board made 32 recommendations to address these flaws.

Company involved

Meta

AI system involved

cross-check program

10 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 →

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 →

Didi fined for over-collecting personal data of users

The Cyberspace Administration of China fined Didi Global Inc. for violating data protection laws. The investigation found that Didi had over-collected personal data from passengers and drivers, including facial recognition, location, and clipboard information, totaling billions of records. The violations began in 2015 and continued until the investigation in 2021. Didi was ordered to pay a penalty and correct its practices.

Company involved

滴滴全球股份有限公司 (Didi Global Inc.)

AI system involved

Didi ride-hailing apps

8 source articles · read the reporting →

MAA, JBG to pay DC $9.3M total to settle RealPage case - Multifamily Dive

The system set rent prices for tenants, causing them to pay higher rents.

Company involved

MAA (Mid-America Apartments) and JBG Smith

AI system involved

RealPage Revenue Management Software

1 source article · read the reporting →

Adobe Firefly trained on thousands of Midjourney images, Bloomberg reports

Bloomberg has reported that Adobe's Firefly image generator was trained using thousands of images from competitor Midjourney. Adobe says these made up about 5% of the training data and were part of the Adobe Stock library. The company has marketed Firefly as ethically trained and offered enterprise customers indemnity against copyright claims. Adobe responded that all Adobe Stock images undergo moderation, but the report has raised questions about Firefly's copyright safety.

Company involved

Adobe

AI system involved

Firefly

7 source articles · read the reporting →

Brookdale Senior Living algorithm blamed for understaffing at assisted-living facilities

Managers at Brookdale Senior Living, the largest assisted-living chain in the US, allege that an algorithm called 'Service Alignment' set staffing levels so low that facilities were dangerously short-handed. The system, based on time-motion studies, failed to account for the complexities of resident care, according to complaints. Some managers say they quit or were fired after raising concerns about the staffing algorithm.

Company involved

Brookdale Senior Living

AI system involved

Service Alignment

1 source article · read the reporting →

Google Cloud Used in CBP AI Virtual Border Wall Contract

The Intercept reported that U.S. Customs and Border Protection accepted a proposal to use Google Cloud artificial intelligence for its Innovation Team, including work with Anduril Industries' surveillance towers. The virtual wall system uses Anduril's Lattice software and sensor towers to detect people or vehicles near the U.S.-Mexico border and relay their locations to agents. Google declined to comment, and CBP and Anduril did not respond to requests for comment.

Company involved

U.S. Customs and Border Protection (CBP)

AI system involved

Google Cloud AI Platform with Anduril Lattice and Sentry Towers

1 source article · read the reporting →

Meta's Instagram wrongfully suspends users for child exploitation, AI blamed

Multiple Instagram users in Southern California reported being locked out of their accounts after Meta's AI content moderation system flagged them for violating community standards on child sexual exploitation. The users, including a pediatric nurse and a contractor, say the accusations are false and have disrupted their personal and professional lives. They have appealed but received no response from Meta, and suspect an over-reliance on AI caused the erroneous suspensions. ABC7 has contacted Meta for comment.

Company involved

Meta

AI system involved

Instagram

1 source article · read the reporting →

Clearview AI settles with ACLU over facial recognition database sales

Clearview AI has agreed to stop selling its facial recognition database to most private US companies as part of a proposed settlement with the ACLU. The company scraped billions of images from social media without consent to build its database, violating Illinois' Biometric Information Privacy Act. The settlement requires Clearview to delete old facial vectors and allow Illinois residents to opt out. The company can still sell its technology to law enforcement and government agencies.

Company involved

Clearview AI

AI system involved

Clearview AI facial recognition database

8 source articles · read the reporting →

Zillow faces securities class action over Zillow Offers wind-down

Zillow Group, Inc. is accused of making false and misleading statements to investors about its Zillow Offers home-flipping business. The company allegedly failed to disclose that its forecasting algorithm was unable to predict home prices accurately, leading to a $304 million inventory write-down and a decision to wind down the business. Investors who bought shares between February 10 and November 2, 2021, suffered losses when the stock price dropped after the announcement. A class action lawsuit has been filed in Washington federal court.

Company involved

Zillow Group, Inc.

AI system involved

Zillow Offers

10 source articles · read the reporting →