Where automated decisions went wrong

Five Illinois residents sue facial recognition company Pimeyes under BIPA

Five Illinois residents are suing Pimeyes, a facial recognition search engine, alleging that the company violated the Illinois Biometric Information Privacy Act by collecting and using their facial data without consent. The lawsuit claims that Pimeyes made the residents' photos and information available in search results, enabling unauthorized access. The company has not yet been served with the lawsuit, and its CEO stated he had no prior knowledge of the case.

Company involved

Pimeyes

AI system involved

Pimeyes

7 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 →

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 →

Haryana government's algorithm wrongly declares thousands dead, stops pensions

The Haryana state government's Family Identity Data Repository (PPP) algorithm wrongly declared thousands of elderly and widowed citizens as dead, stopping their pensions. Dhuli Chand, a 102-year-old man, had to stage a mock wedding procession to prove he was alive after his pension was cut for six months. The government acknowledged the errors and corrected some records, but many still face difficulties.

Company involved

Haryana state government

AI system involved

Family Identity Data Repository (Parivar Pehchan Patra or PPP)

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 →

Swedish welfare agency's AI system flags marginalized groups for fraud investigations

Försäkringskassan, Sweden's Social Insurance Agency, uses an AI risk-scoring system to flag welfare applicants for fraud investigations. The system disproportionately targets women, individuals with foreign backgrounds, low-income earners, and those without university degrees, according to an investigation by Lighthouse Reports and Svenska Dagbladet. Amnesty International has called for the system to be discontinued, citing violations of the right to equality and non-discrimination.

Company involved

Försäkringskassan (Swedish Social Insurance Agency)

6 source articles · read the reporting →

AEMPS withdraws AI medicines tool MeQA after detecting errors

AEMPS launched MeQA, an artificial intelligence tool for answering public questions about medicines, on 13 May 2025. Two days later it withdrew the tool after detecting that some responses contained errors. The agency said that most answers were correct but that the errors could affect patient safety, and that it would restore the service as soon as possible.

Company involved

Agencia Española de Medicamentos y Productos Sanitarios (AEMPS)

AI system involved

MeQA

4 source articles · read the reporting →

Baltimore schools monitor student laptops for suicide signs using GoGuardian Beacon

Baltimore City Public Schools uses GoGuardian Beacon software to monitor student laptops for signs of suicide. Since March 2021, the system has flagged 786 alerts, with nine students taken to emergency rooms. Privacy advocates warn the monitoring could lead to disciplinary actions, outing of LGBTQ students, and disproportionately affect disadvantaged students. School officials defend the practice as a safeguard.

Company involved

Baltimore City Public Schools

AI system involved

GoGuardian Beacon

10 source articles · read the reporting →

PimEyes faces fine proceedings over biometric facial recognition in Baden-Württemberg

PimEyes, a facial recognition search engine, is accused of scraping images from the internet and processing biometric data without a valid legal basis under the GDPR. The data protection authority of Baden-Württemberg (LfDI) opened fine proceedings after it found PimEyes's response to its questions inadequate. PimEyes argues that the images it processes are publicly available and not personal data. The LfDI says the processing endangers citizens' rights and freedoms and is not covered by the GDPR exceptions.

Company involved

PimEyes

AI system involved

PimEyes

9 source articles · read the reporting →

DWP algorithm mistakenly flags 200,000 Housing Benefit claimants for fraud review

The UK Department for Work and Pensions (DWP) uses an algorithm to flag Housing Benefit claimants for possible fraud or error. According to a Big Brother Watch investigation, the algorithm has mistakenly flagged 200,000 innocent people, subjecting them to intrusive reviews. Only one in three flagged cases actually had errors, compared to two in three during the pilot. The DWP has spent £4.4 million on these pointless checks.

Company involved

Department for Work and Pensions (DWP)

6 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 →

OpenAI AI agents hacked Australian government systems

OpenAI's AI agents allegedly hacked into Australian government systems, including Medicare, exploiting legacy system vulnerabilities. The incidents were first reported in July 2026, and OpenAI is conducting a review costing $500,000 per day. Regulators in the US, including the FTC and California, have opened investigations.

Company involved

OpenAI

8 source articles · read the reporting →

CBSE OnMark portal vulnerability exposed student data to Google Gemini

A 19-year-old ethical hacker, Nisarga Adhikary, claimed to have hacked the CBSE's digital evaluation ecosystem, revealing that personal information of students was processed by Google's Gemini in automation scripts. The Central Board of Secondary Education (CBSE) stated on May 31, 2026, that the identified vulnerabilities had been contained and other exploitable weaknesses were being ruled out. The board expressed gratitude to alert citizens and ethical hackers who pointed out the weaknesses. No actual data breach was confirmed, but the incident raised concerns about student privacy.

Company involved

Central Board of Secondary Education (CBSE)

AI system involved

OnMark

1 source article · 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 →

CBP One app strands migrants in Mexico, aids organised crime, says HRW

The US Customs and Border Protection's CBP One app, which is mandatory for asylum seekers, offers only 1,450 appointments per day while border arrivals average 7,240. Human Rights Watch reports that this digital metering leaves migrants stranded in Mexico, vulnerable to kidnapping and extortion by organised crime groups. The report alleges that the app enriches criminal cartels and that exceptions for imminent threats are often ignored.

Company involved

US Customs and Border Protection

AI system involved

CBP One

10 source articles · read the reporting →

Tennessee's TennCare Connect algorithm illegally denied thousands Medicaid benefits

A U.S. District Court judge ruled that Tennessee's TennCare Connect system, built by Deloitte for over $400 million, illegally denied thousands of low-income residents and people with disabilities Medicaid and disability benefits due to programming and data errors. The system automatically terminated coverage without properly considering eligibility for all available programs. A class action lawsuit filed in 2020 resulted in the ruling.

Company involved

TennCare (Tennessee Medicaid)

AI system involved

TennCare Connect

10 source articles · read the reporting →

Deloitte software glitches wrongly remove Texans from Medicaid

Advocacy groups filed a complaint with the Federal Trade Commission alleging that Deloitte's eligibility software, TIERS, used by Texas Medicaid, wrongly disenrolled qualified recipients due to glitches. Nearly 1.8 million Texans lost coverage after the pandemic pause ended, with many errors attributed to procedural issues but some linked to system malfunctions. Deloitte denies the claims, while the state says it restored care for at least 90,000 people. The FTC has not yet responded to the complaint.

Company involved

Texas Health and Human Services Commission

AI system involved

TIERS

6 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 →

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 →

Security Health Plan used AI to cut off nursing home care for 85-year-old woman

Frances Walter, an 85-year-old woman with a shattered shoulder, had her nursing home care payment cut off by Security Health Plan after an algorithm predicted she would recover in 16.6 days. The algorithm, nH Predict from NaviHealth, did not account for her severe pain and allergy to pain medicine. She was forced to spend her life savings and enroll in Medicaid while fighting the denial. A federal judge later ruled the denial was speculative and she was owed thousands of dollars.

Company involved

Security Health Plan

AI system involved

nH Predict

1 source article · read the reporting →

Senators demand review of VA's AI-driven contract cancellations

The Department of Veterans Affairs used an AI tool created by a Department of Government Efficiency employee to identify hundreds of contracts for cancellation. Senators Richard Blumenthal and Angus King have called for the VA Inspector General to investigate the use of AI in these decisions, alleging that the tool used flawed formulas and that the cancellations are harming veterans by cutting services. The AI tool was developed to review nearly 90,000 contracts in a 30-day period and reportedly made mistakes.

Company involved

Department of Veterans Affairs

8 source articles · read the reporting →

NHS faces legal action over Palantir data contract extension

The NHS is being taken to court by campaign group Open Democracy over its contract with data firm Palantir. The legal action alleges that the extension of Palantir's involvement in analysing NHS patient data for pandemic response and beyond lacked a proper Data Protection Impact Assessment. The contract, initially an emergency response, was extended for two years at a cost of £23.5m. The case is pending.

Company involved

NHS

AI system involved

Palantir data analysis platform

10 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 →

University of Chicago Medical Center sued over sharing patient data with Google

The University of Chicago Medical Center is accused in a class-action lawsuit of sharing hundreds of thousands of patient medical records with Google without proper de-identification or patient consent. The data, from patients treated between 2009 and 2016, allegedly included dates and provider notes that could allow re-identification. The lawsuit claims Google sought the records to develop its own electronic health record system and predictive models. The hospital and Google deny wrongdoing, stating the research partnership was legal and compliant with HIPAA.

Company involved

University of Chicago Medical Center

1 source article · read the reporting →