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 →
Activision Blizzard uses generative AI, lays off artists
Activision Blizzard, the video game publisher behind Call of Duty, used generative AI tools like Midjourney and Stable Diffusion for concept art and marketing. In late January 2024, Microsoft laid off 1,900 Activision Blizzard and Xbox employees, including many 2D artists. Employees allege that remaining concept artists were forced to use AI, and that AI-generated cosmetics were sold in the game store. The company did not comment.
- Company involved
- Activision Blizzard
- AI system involved
- Midjourney, Stable Diffusion, GPT-3.5
4 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 →
Disney sends cease and desist to Character.AI over copyright
Walt Disney Company sent a cease and desist letter to Character.AI, alleging that the chatbot developer uses Disney's copyrighted characters without authorization. Disney expressed concern that the platform could damage its brand long term. The letter demands immediate action to stop using the characters.
- Company involved
- Character.AI
- AI system involved
- Character.AI
5 source articles · read the reporting →
Disney and Universal sue AI firm Midjourney over image generator copyright infringement
Disney and Universal have filed a lawsuit against AI firm Midjourney in federal district court in Los Angeles, alleging that its image generator produces 'innumerable' copies of copyrighted characters including Darth Vader, Elsa, and the Minions. The studios claim the system infringes their copyrights by generating images that are substantially similar to their characters. Midjourney has not responded to a request for comment. The case is ongoing.
- Company involved
- Midjourney
- AI system involved
- Midjourney image generator
5 source articles · read the reporting →
Content Giants Sue Unauthorized AI, Invest in Paid Partners - 조선일보
Generated images of copyrighted characters without authorization, affecting Disney and NBCUniversal's intellectual property rights.
- Company involved
- Midjourney
- AI system involved
- Midjourney
1 source article · read the reporting →
Docomo Pacific CEO's mother targeted in AI voice cloning scam
Docomo Pacific's CEO Christine Baleto revealed that her elderly mother received a scam call from someone impersonating a federal agent, using AI voice cloning to pressure her into revealing personal information. The caller threatened to send agents to her home if she did not comply. Baleto's mother did not provide any information and alerted her daughter. Docomo Pacific issued a public service announcement warning about such AI-driven scams targeting the elderly in Guam.
2 source articles · read the reporting →
CommNV vs Uprise (Nevada DC): AI-hallucinated content in court filing, Monetary Penalty OR Order to volunteer and teach about AI…
The AI system generated fabricated legal citations that were included in a court filing, misleading the court and opposing counsel.
- Company involved
- Christopher Day
1 source article · read the reporting →
OpenAI sued over alleged undisclosed human review of ChatGPT conversations - Top Class Actions
ChatGPT conversations were reviewed by third-party contractors without adequate disclosure to users.
- Company involved
- OpenAI OpCo LLC
- AI system involved
- ChatGPT
1 source article · read the reporting →
DOJ, Pinnacle reach settlement in RealPage case - Yahoo Finance
The system recommended rent prices to landlords, affecting renters' housing costs.
- Company involved
- Pinnacle Property Management Services
- AI system involved
- RealPage
1 source article · read the reporting →
New Meta smart glasses class action gives employers a reason to write the policy they've been puttin - hcamag.com
The smart glasses recorded bystanders without their consent and sent the footage to Meta for AI training.
- Company involved
- Meta Platforms
- AI system involved
- Meta AI-enabled Ray-Ban and Oakley smart glasses
1 source article · read the reporting →
Meta accused of exploiting content moderators in Ghana
Meta moved its Facebook content moderation operations to Ghana after laying off moderators in Kenya. Workers in Accra report poor working conditions, low pay, and psychological harm from reviewing traumatic content. Foxglove is investigating and planning a legal challenge.
- Company involved
- Meta
- AI system involved
- Facebook content moderation system
3 source articles · read the reporting →
Pearl Gardner v. Nationstar Mortgage LLC (D. Arizona): AI-hallucinated content in court filing, Bar Referral
Pro Se Litigant | D. Arizona | State(s): USA. AI tool: Clearpoint. Problem: Fabricated: Case Law. Consequence: Bar Referral.
1 source article · read the reporting →
Spinvox accused of using human transcribers for voice messages
Spinvox, a UK voice-to-text firm, is accused of using call centre staff in South Africa and the Philippines to transcribe the majority of user messages, contrary to claims of automated speech recognition. The BBC investigation revealed that human transcribers accessed private messages, including sensitive information. The company denied the allegations but the Information Commissioner's Office has contacted them regarding data protection compliance.
- Company involved
- Spinvox
- AI system involved
- D2 (the Brain)
4 source articles · read the reporting →
Capital Standard, LLC v. U.S. Bank National Association (CA Florida (2d)): AI-hallucinated content in court filing, Monetary Sanction; Adverse Costs…
The AI generated false legal citations that were included in a court filing, misleading the court.
1 source article · read the reporting →
Engineer.ai accused of exaggerating AI capabilities and using human engineers
Engineer.ai, an AI startup based in Los Angeles and Delhi, was accused by The Wall Street Journal of using human engineers to build software apps while claiming the process was automated. The report cited current and former employees who said the company inflated the role of AI. Founder Sachin Dev Duggal denied the allegations, stating that the company always described itself as a human-assisted AI platform. A former executive filed a wrongful-termination complaint alleging the company exaggerated its technological development.
- Company involved
- Engineer.ai
6 source articles · read the reporting →
Commonwealth Bank worker made redundant after unknowingly training AI chatbot to replace her
Kathryn Sullivan, a 63-year-old Commonwealth Bank teller, was made redundant in July 2025 after spending years training the bank's 'Bumblebee' chatbot to respond to customers. She was unaware that she was helping the AI replace her own role. Sullivan confronted CEO Matt Comyn at the bank's AGM in Brisbane, where chairman Paul O'Malley acknowledged the bank had made a mistake. The Finance Sector Union had brought a case before the Fair Work Commission, resulting in some jobs being offered back, but not all.
- Company involved
- Commonwealth Bank
- AI system involved
- Bumblebee
4 source articles · read the reporting →
Inflection background check errors lead to lawsuits from banned Airbnb users
Inflection, a background check company used by Airbnb, Uber, and other platforms, has been sued multiple times for providing inaccurate reports. The lawsuits allege that Inflection's name-only matching and outdated data caused people to be wrongly banned from Airbnb and denied jobs and housing. Some cases have been settled, while others remain ongoing. The company is accused of violating the Fair Credit Reporting Act.
- Company involved
- Inflection
- AI system involved
- Inflection background check
8 source articles · read the reporting →
Tenant screening software denies housing to disabled Latino man in Connecticut
In 2016, Carmen Arroyo requested to move her disabled son Mikhail into a larger apartment in the same complex. The landlord, WinnResidential, used CoreLogic's CrimSafe tenant screening software, which flagged a dropped retail theft charge against Mikhail as disqualifying. The landlord rejected the application without explanation. Arroyo sued CoreLogic and WinnResidential under the Fair Credit Reporting Act and the Fair Housing Act, alleging that the software disproportionately excludes people of colour. The case was scheduled for trial in August 2021.
- Company involved
- WinnResidential
- AI system involved
- CrimSafe
10 source articles · read the reporting →
Prisma Labs wins arbitration in Lensa biometric privacy lawsuit
Artificial intelligence company Prisma Labs is accused of violating Illinois' biometric privacy law by collecting facial geometry data from users of its Lensa app. A proposed class action was filed, but a California federal judge granted Prisma's motion to compel arbitration because users agreed to it during sign-up. The plaintiff alleges the app collected his facial data without consent.
- Company involved
- Prisma Labs Inc.
- AI system involved
- Lensa AI
8 source articles · read the reporting →
Civitai dropped by cloud provider OctoML over CSAM image generation
Civitai, an AI image generation platform, was dropped by its cloud computing provider OctoML after an investigation by 404 Media found it was being used to generate images that could be categorized as child sexual abuse material (CSAM). The platform also faced scrutiny for nonconsensual deepfakes of celebrities and private citizens, primarily women. Civitai added new moderation filters in response, but OctoML terminated the business relationship.
- Company involved
- Civitai
- AI system involved
- Civitai
8 source articles · read the reporting →
U.S. Federal Court Allows CIPA Class Action Against AI Customer Service Provider to Proceed - Wilson Sonsini
The AI system intercepted and recorded a customer's phone call and collected her personal and financial information without consent.
- Company involved
- ConverseNow Technologies, Inc.
1 source article · read the reporting →
Lawsuit: AI Illegally Recorded Doctor-Patient Encounters - BankInfoSecurity
The system recorded and transcribed patient-doctor conversations without patients' informed consent.
- Company involved
- Sutter Health and MemorialCare
- AI system involved
- Abridge AI platform
1 source article · read the reporting →
Patagonia Targeted by Privacy Class Action for Use of Customer Service AI Software - Law.com
The system intercepted, recorded, and mined data from customer service calls, affecting customers' privacy.
- Company involved
- Patagonia
- AI system involved
- Talkdesk
1 source article · read the reporting →
