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 →
Facebook Allowed Age-Targeted Credit Card Ads Violating Its Policy
The Markup found that four companies—Aspiration, Hometap, Chime, and Varo Bank—ran Facebook ads for credit cards and home equity loans that were targeted by age, excluding users under 25 or 35. This practice violates Facebook's own anti-discrimination policy and may violate the Equal Credit Opportunity Act and California's Unruh Civil Rights Act. Facebook did not respond to requests for comment, and some advertisers said they would review their ad targeting.
- Company involved
- Facebook
- AI system involved
- Facebook Ad Platform
9 source articles · read the reporting →
Facebook allowed advertisers to target users interested in pseudoscience
The Markup found that Facebook's ad-targeting system was allowing advertisers to reach users classified as interested in 'pseudoscience', a category with more than 78 million people. The Markup paid to run an ad targeting that category and Facebook approved it, despite promising to take down COVID-19 misinformation. After being contacted by The Markup, Facebook removed the interest category.
- Company involved
- Facebook
- AI system involved
- Facebook Ads Manager
10 source articles · read the reporting →
Airbnb smart-pricing algorithm increased racial revenue gap, study finds
A study by Carnegie Mellon University found that Airbnb's smart-pricing algorithm increased the revenue gap between White and Black hosts, even though it narrowed the gap among hosts who adopted it. The algorithm, which sets daily prices automatically, was adopted by fewer Black hosts, so its suggested prices were closer to the optimum for White hosts. The researchers said the tool could reduce racial disparities only if more Black hosts adopted it.
- Company involved
- Airbnb
- AI system involved
- Airbnb smart-pricing algorithm
10 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 →
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 →
Stable Diffusion amplifies racial and gender stereotypes in generated images
An analysis by Bloomberg of over 5,000 images generated by Stability AI's Stable Diffusion found that the text-to-image model amplifies racial and gender stereotypes. The model overrepresented lighter-skinned men in high-paying jobs and darker-skinned people in low-paying jobs, and underrepresented women in positions of power. Stability AI acknowledged the inherent biases in its models and stated it is working on mitigation.
- Company involved
- Stability AI
- AI system involved
- Stable Diffusion
8 source articles · read the reporting →
ETH Zurich study shows LLMs can infer Reddit users' personal data
Researchers at ETH Zurich conducted a study where nine large language models, including GPT-4, analysed Reddit users' posts and inferred personal attributes such as age, location, gender, and income with up to 85% accuracy. The study randomly selected 520 users and found that GPT-4 was most accurate, while LlaMA-2-7b was least. The researchers warn that people unknowingly reveal personal information online that LLMs can exploit.
- Company involved
- ETH Zurich
- AI system involved
- GPT-4, LlaMA-2-7b
4 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 →
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 →
Uber and Amazon algorithms pay different wages for same work
A study by law professor Veena Dubal alleges that Uber and Amazon use AI algorithms to offer different pay rates to gig workers doing identical work. The algorithms are said to calculate the lowest wage a driver will accept based on personal data. Uber denies tailoring individual fares, and the California Labor Commission's lawsuit against Uber and Lyft is ongoing.
- Company involved
- Uber
10 source articles · read the reporting →
Klarna CEO faces backlash for using AI to halve marketing team
Klarna CEO Sebastian Siemiatkowski tweeted that the company saved $10 million by using generative AI to reduce its in-house marketing team to half its previous size and cut external agency spending by 25%. The post sparked criticism on social media, with commenters calling the remarks 'ghoulish' and highlighting concerns about AI's impact on jobs. Klarna previously laid off 700 workers in 2022 and reduced headcount by 23% by end of 2023.
- Company involved
- Klarna
- AI system involved
- Midjourney, DALL-E, Adobe Firefly
6 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 →
GMB members report declining earnings since Uber introduced dynamic pricing
GMB Union has welcomed a report into Uber's dynamic pricing that appears to show it benefits Uber more than drivers. GMB members have reported declining earnings since the introduction of dynamic pricing. The union has called for greater transparency around earnings in the gig economy and will review the report before consulting members on next steps.
- Company involved
- Uber
- AI system involved
- dynamic pricing
8 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 →
Princeton Review charges higher SAT prep fees to Asian Americans
A ProPublica study found that Princeton Review's geographically-determined pricing system charges Asian American students almost twice as likely as other ethnicities to pay the highest prices for online SAT tutoring. The system sets prices based on location, with higher prices in areas like New York City where Asian Americans are concentrated. Princeton Review stated that prices reflect local costs and competition, but the disparity raises concerns about racial discrimination in automated pricing.
- Company involved
- Princeton Review
7 source articles · read the reporting →
Citizens Advice finds ethnicity penalty in car insurance pricing
Citizens Advice conducted exploratory research into car insurance pricing and found that people of colour may be paying £250 more per year than White people. The research suggests that areas with large communities of colour may be identified as more risky by algorithms, even when objective risk factors are controlled. Citizens Advice has called on the Financial Conduct Authority to investigate the issue.
9 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 →
Insurer drops California homeowner after aerial photo analysis
Cindy Picos was dropped by her home insurer after the company used aerial photos to assess her roof. The insurer refused to let her see the photos, and she believes her roof is in fine shape. The incident highlights the growing use of drones and aerial imagery by insurers to inspect properties without in-person visits.
2 source articles · read the reporting →
iTutorGroup to Pay $365,000 to Settle EEOC Discriminatory Hiring Suit
The system automatically rejected tutor applicants aged 55+ (women) or 60+ (men).
- Company involved
- iTutorGroup
1 source article · read the reporting →
Whole Foods uses heat map to track unionization risk at stores
Whole Foods, owned by Amazon, is reportedly using a heat map that scores stores on their risk of unionization. The system analyses metrics including local union membership, NLRB charges, employee compensation, diversity, and internal sentiment surveys. The tool is used to monitor and potentially prevent union organising efforts. Whole Foods stated it prefers a direct relationship with employees, while Amazon has a history of aggressively combating unionization.
- Company involved
- Whole Foods Market
1 source article · read the reporting →
