California threatens legal action against Uber over self-driving cars without permit
Uber launched a pilot program of self-driving taxis in San Francisco without obtaining a required permit from the California DMV. Two of the vehicles were observed running red lights on the first day. The California attorney general threatened legal action unless Uber removes the cars from the road. Uber argued that its cars are not fully autonomous and therefore not subject to the permit requirement.
- Company involved
- Uber
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Motorcyclist sues General Motors after self-driving Chevrolet Bolt crash in San Francisco
On 7 December 2017, a self-driving Chevrolet Bolt operated by GM's Cruise subsidiary aborted a lane change and re-entered its lane on Oak Street in San Francisco, striking motorcyclist Oscar Nilsson and knocking him to the ground. Nilsson sued General Motors, claiming neck and shoulder injuries requiring lengthy treatment and resulting in disability leave. The San Francisco Police Department's report blamed Nilsson for passing on the right, but his lawyer disputed this, and GM denied responsibility while emphasising safety.
- Company involved
- General Motors
- AI system involved
- Chevrolet Bolt autonomous vehicle
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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
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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 →
California DMV suspends Cruise LLC driverless and deployment permits
The California Department of Motor Vehicles suspended Cruise LLC's autonomous vehicle deployment and driverless testing permits, saying the vehicles were not safe for public operation and that Cruise had misrepresented safety information. The suspension took effect immediately under California regulations. Cruise may apply to reinstate the permits once it satisfies the department's requirements. Its permit for testing with a safety driver was not affected.
- Company involved
- Cruise LLC
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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.
8 source articles · read the reporting →
Cruise alleged to rely on human operators for autonomous driving
A New York Times article alleged that Cruise's autonomous vehicles rely on human operators to achieve autonomous driving, with 1.5 workers per vehicle intervening every 2.5 to five miles. Cruise CEO Kyle Vogt responded on Hacker News, stating that remote assistance is used 2-4% of the time and that many sessions are resolved by the vehicle itself. The company declined an interview request from the NYT.
- Company involved
- Cruise
- AI system involved
- Cruise AV
9 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 →
AI-generated article misstates Roadzen's Q1 revenue expectations
An AI-generated article on The Motley Fool incorrectly stated that Roadzen's analyst expectations for Q1 revenue were over $21 million, implying a revenue miss of more than 50%. Roadzen clarified that these figures were never issued by its covering analysts and that its actual revenue of $10.9 million was in line with estimates. The Motley Fool later corrected the article and added an editor's note acknowledging the error.
- Company involved
- The Motley Fool
4 source articles · read the reporting →
Utah's online dispute resolution system leads to default judgments against defendants
Utah's online dispute resolution system for small claims cases automatically enters default judgments against defendants who fail to register within 14 days. Samantha Thompson missed the buried notice in her summons and was ordered to pay $995.42 plus wage garnishment. The system has increased default judgment rates, especially for payday lenders. Critics say the confusing paperwork disadvantages low-income litigants.
- Company involved
- Utah State Courts
- AI system involved
- Utah Online Dispute Resolution System
4 source articles · read the reporting →
Uber driver locked out of app after shaving head, facial recognition failure alleged
Neradi Srikanth, a 23-year-old Uber driver in Hyderabad, was locked out of the app on 27 February 2021 after shaving his head for a religious pilgrimage. He alleges that Uber's facial recognition system failed to recognise him, preventing him from working and causing him to miss a car loan payment. Uber denies this, stating the account was blocked for repeated community guideline violations, and says its system can handle appearance changes. The driver's union reports similar issues among other drivers, highlighting the lack of accountability for platform technology failures.
- Company involved
- Uber
- AI system involved
- Uber facial recognition system
3 source articles · read the reporting →
Uber and Lyft surge pricing after NYC subway shooting leads to refunds
After a shooting on a Brooklyn subway train, Uber and Lyft's automated surge pricing algorithms increased fares for riders in the area. Both companies later disabled surge pricing and stated they would refund customers who were overcharged. The incident highlights the risk of automated pricing systems that cannot account for emergency contexts.
- Company involved
- Uber and Lyft
6 source articles · read the reporting →
Zoox recalls 332 robotaxis after self-driving cars veer into oncoming traffic
Zoox, Amazon's self-driving car company, recalled 332 robotaxis after they were found veering into oncoming traffic near intersections. The issue was first noticed in August 2025 when a car took a wide right turn crossing the center line. Zoox said no crashes or injuries occurred and fixed the problem with a software update. The National Highway Traffic Safety Administration confirmed the recall and is in ongoing discussions with Zoox.
- Company involved
- Zoox
- AI system involved
- Zoox robotaxis
6 source articles · read the reporting →
Tesla Cybertruck owner sues over FSD crash in Houston overpass
Justine Saint Amour is suing Tesla after her Cybertruck, with Full Self-Driving engaged, crashed into a concrete barrier on a Houston overpass on August 18, 2025. The lawsuit alleges that Tesla was negligent in hiring and retaining Elon Musk as CEO, and that the FSD system was defective due to lack of LiDAR and ineffective automatic emergency braking. Saint Amour seeks over $1 million in damages.
- Company involved
- Tesla
- AI system involved
- Full Self-Driving (FSD)
3 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 →
Cruise Self-Driving Car Rear-Ended by Human-Driven Cruise Vehicle in San Francisco
On 11 June 2018, a self-driving Cruise Chevrolet Bolt was rear-ended by another Cruise vehicle driven by a human employee on Bryant Street in San Francisco. The collision caused only minor scuffs and no injuries. Cruise reported the incident to the California DMV as required. The incident highlights the challenges of autonomous vehicles interacting with human drivers.
- Company involved
- Cruise
2 source articles · 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 →
Grab's surge pricing algorithm always adds fees, investigation finds
An investigation by the Pulitzer Center found that Grab's ride-hailing app in the Philippines always includes surge fees in its fares, even when wait times are long. Customers like Rica Torres reported rising costs without explanation. A complaint filed with the LTFRB in 2022 remains unresolved, and the regulator has not determined how the algorithm sets surge rates.
- Company involved
- Grab
- AI system involved
- Grab app
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 →
Tesla Model S crash, 2 killed, Autopilot verified: Tesla hits parked tractor-trailer
The Tesla Autopilot system failed to detect a parked tractor-trailer, causing a collision that killed two occupants.
- Company involved
- Tesla
- AI system involved
- Autopilot
1 source article · read the reporting →
State Farm accused of algorithmic bias against Black homeowners
A class action lawsuit filed in Chicago alleges State Farm's automated claims processing system discriminates against Black policyholders. The suit claims Black customers are more likely to face additional paperwork and longer waits for claim approval than white customers, citing data from 800 homeowners. State Farm has stated it takes the filing seriously and is committed to fair treatment, while the plaintiffs seek to enjoin the current system and require audits.
- Company involved
- State Farm
- AI system involved
- automated claims processing system
2 source articles · read the reporting →
Apple Siri Settlement: How to Claim Up to $95 - Yahoo Finance
Apple Siri Settlement: How to Claim Up to $95 Yahoo Finance
- Company involved
- Apple
- AI system involved
- Siri
1 source article · read the reporting →
