Natural England biodiversity metric undervalues rewilding habitats
Natural England published a new biodiversity net gain metric in July 2021 that uses an algorithm to score habitat value. Ecologists and conservationists warned that the metric misclassifies scrubby and ruderal habitats as degraded, potentially undervaluing rewilding projects like Knepp estate and leading to inadequate compensation for habitat loss. The article claims the metric could blight hundreds of thousands of sites and penalise rewilding-style management.
- Company involved
- Natural England
- AI system involved
- Biodiversity Net Gain (BNG) metric
10 source articles · read the reporting →
California regulator accuses Maxpread Technologies of using AI-generated fake CEO to scam investors
Maxpread Technologies allegedly used an AI-generated avatar to pose as its CEO in a YouTube video to deceive investors. The California DFPI issued cease and desist letters to Maxpread and four other companies for offering unqualified securities and making false promises. The regulator claims the companies promised high daily returns using AI trading, but these claims were false. Maxpread did not respond to requests for comment.
- Company involved
- Maxpread Technologies
8 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 →
Danish law enables algorithm to profile unemployed for long-term risk
The Danish parliament passed a law in April 2019 that allows an algorithm to analyse personal data of all unemployed individuals to identify those at risk of long-term unemployment. The system uses data on ethnicity, age, health, and education history to produce a risk score for social workers. Critics, including legal experts and unemployment insurance funds, argue the profiling is stigmatising, lacks transparency, and may violate GDPR. The Danish Data Protection Authority has reopened its review of the law.
- Company involved
- Danish Ministry of Employment
10 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 →
ScaleFactor reportedly failed to deliver promised automated bookkeeping software
ScaleFactor, an Austin-based startup, is reported to have failed to deliver the automated, real-time bookkeeping tools it promised customers, instead relying on human bookkeepers and a Filipino contract accounting firm. The company told Forbes in June that it was shutting down, initially blaming the pandemic, but Forbes later reported that its problems predated Covid-19. Investors reportedly came to see the company as more of a services business than a software platform, and pulled funding after a pivot to a marketplace model. No legal or regulatory action is reported.
- Company involved
- ScaleFactor
10 source articles · read the reporting →
Southland Homes & Real Estate and Investment, LLC v. Lam (SC California): AI-hallucinated content in court filing, Monetary Sanctions; Bar…
The AI system generated legal briefs containing fabricated case citations, which were filed in court, affecting the court and the opposing party.
1 source article · 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 →
Four commercial large language models perpetuate race-based medical misconceptions
A study published in npj Digital Medicine tested four commercial large language models (Bard, ChatGPT, GPT-4, and Claude) for their tendency to propagate discredited race-based medical beliefs. When asked about kidney function, lung capacity, and skin thickness, the models sometimes endorsed debunked racial differences, particularly affecting Black patients. The study concludes that these biases pose a potential hazard and urges caution before using such models in clinical decision-making.
- Company involved
- Not named in article (refers to commercial LLMs generically as Google's Bard, OpenAI's ChatGPT and GPT-4, and Anthropic's Claude)
- AI system involved
- Bard, ChatGPT, GPT-4, Claude
6 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 →
Bloomberg test finds racial bias in OpenAI's GPT for resume ranking
Bloomberg News conducted an experiment using GPT-3.5 and GPT-4 to rank equally qualified resumes with names associated with different races and genders. The test found that resumes with names distinct to Black Americans were least likely to be ranked as top candidates, indicating systematic bias. OpenAI responded that businesses can mitigate bias through fine-tuning and that it prohibits using GPT for automated hiring decisions.
- Company involved
- OpenAI
- AI system involved
- GPT-3.5
5 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 →
Study finds LLMs used in up to 16.9% of AI conference peer reviews
According to a new paper on arXiv, researchers have begun using generative AI services to help write peer reviews of machine learning papers submitted to leading AI conferences. The study analysed reviews from ICLR 2024, NeurIPS 2023, CoRL 2023 and EMNLP 2023 and estimated that between 6.5% and 16.9% of review text may have been substantially modified by large language models. The authors argue that this risks depriving authors of diverse expert feedback and may skew reviews towards AI model biases. They have called for greater transparency about the use of LLMs in peer review.
9 source articles · read the reporting →
iBorderCtrl lie detector falsely flagged honest reporter as liar
A journalist testing Europe's iBorderCtrl virtual policeman at the Serbian-Hungarian border gave honest answers but was deemed a liar by the system, scoring 48 out of 100 with four false answers flagged. The Hungarian policeman said the result suggested further checks, though none were carried out. The reporter only learned of the result after filing a data access request under European privacy laws. Experts and transparency activists have criticised the technology as pseudoscientific and potentially discriminatory.
- Company involved
- iBorderCtrl consortium
- AI system involved
- Silent Talker / iBorderCtrl virtual policeman
10 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 →
Voice actors sue LOVO over alleged theft of voices for AI training
Voice actors Paul Skye Lehrman and Linnea Sage filed a proposed class action against AI startup LOVO, alleging the company misappropriated their voices to train its text-to-speech system Genny. The actors claim they were hired on Fiverr under the pretence of academic research but later discovered their voices were used commercially without consent. Lehrman reports a 50% decline in work and loss of control over how his voice is used. The lawsuit, filed in New York federal court, seeks to represent other affected voiceover artists and obtain a court order blocking the practice.
- Company involved
- LOVO
- AI system involved
- Genny
6 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 →
Audit of RisCanvi finds biases and reliability issues in criminal justice system
Eticas conducted an adversarial audit of RisCanvi, an AI risk assessment tool used in Catalonia's criminal justice system. The audit uncovered biases in risk classifications against specific demographics and significant reliability issues. The findings call for fairer practices in criminal justice AI.
- Company involved
- Catalonia's criminal justice system
- AI system involved
- RisCanvi
4 source articles · read the reporting →
Dutch probation service's OXREC algorithm flawed, leading to incorrect recidivism risk assessments
The Dutch Inspectorate of Justice and Security (Inspectie JenV) published a report finding that the probation service's (Reclassering) OXREC algorithm contains serious flaws, including swapped formulas and incorrect numbers, causing about a quarter of risk assessments to be wrong. The algorithm, used since 2018 for about 44,000 cases per year, also uses variables that can lead to discrimination, such as neighborhood score and income. The Inspectorate recommended immediate correction or temporary suspension. The probation service announced it would temporarily stop using OXREC.
- Company involved
- Reclassering Nederland
- AI system involved
- OXREC
4 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 →
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 →
Pasco Sheriff's Office used algorithm to target potential future criminals and schoolchildren
The Pasco Sheriff's Office operates an intelligence-led policing programme that uses an algorithm to identify people who might break the law based on criminal histories and social networks. Deputies are sent to the homes of those flagged, even without evidence of a crime, and former deputies allege they were ordered to make targets' lives miserable. The agency also keeps a list of more than 400 schoolchildren predicted to 'fall into a life of crime', built from data such as grades and child welfare records, without informing the children or their parents. Civil liberties groups are considering lawsuits and public advocacy campaigns, and experts have called the programmes 'morally repugnant'.
- Company involved
- Pasco Sheriff's Office
10 source articles · read the reporting →
Lovable security flaw exposed user data from 170 apps
Lovable, a Swedish startup, failed to fix a critical security flaw in its vibe coding service. Researchers found 170 Lovable-created web apps that exposed users' personal data, including names, emails, financial information, and API keys. Lovable acknowledged the issue and implemented a security scan, but the flaw remained unresolved.
- Company involved
- Lovable
- AI system involved
- Lovable
5 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 →
