Where automated decisions went wrong

Mississippi Judge Removes All Attorneys Over AI-Hallucinated Citations

In Withers v. City of Aberdeen, a contract dispute, both sides' attorneys submitted briefs containing fabricated case citations generated by AI tools. The court identified six non-existent citations and sanctioned all four attorneys, revoking pro hac vice admissions, imposing fines, and referring them to state bars. The drafting attorneys had used AI research and drafting tools without verifying outputs, while local counsel signed filings without review. The ruling emphasises that attorneys cannot delegate verification duties to AI and that ignorance of AI risks is no defence.

AI system involved

First Drafts

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 →

US Secret Service bought access to cellphone location data

The US Secret Service signed a contract to access Locate X, a service that aggregates location data from phone apps and allows law enforcement to track devices without a warrant. The contract with Babel Street was worth about $36,000 and ran from 2017 to 2018. A former employee said the Secret Service used Locate X in 2018 to seize illegal credit card skimmers at petrol stations. Lawmakers and civil liberties advocates criticised the practice, and Senator Ron Wyden introduced a bill to ban such purchases.

Company involved

United States Secret Service

AI system involved

Locate X

1 source article · read the reporting →

Google Cloud Used in CBP AI Virtual Border Wall Contract

The Intercept reported that U.S. Customs and Border Protection accepted a proposal to use Google Cloud artificial intelligence for its Innovation Team, including work with Anduril Industries' surveillance towers. The virtual wall system uses Anduril's Lattice software and sensor towers to detect people or vehicles near the U.S.-Mexico border and relay their locations to agents. Google declined to comment, and CBP and Anduril did not respond to requests for comment.

Company involved

U.S. Customs and Border Protection (CBP)

AI system involved

Google Cloud AI Platform with Anduril Lattice and Sentry Towers

1 source article · read the reporting →

Pentagon Used Anthropic's Claude in Maduro Venezuela Raid

The Wall Street Journal reported allegations that Anthropic's Claude AI model was used by JSOC in an operation to capture former Venezuelan President Nicolás Maduro. The mission reportedly included AI-enabled targeting that helped with bombing multiple sites in Caracas, despite Anthropic's usage guidelines prohibiting use of Claude for violence, weapons, or surveillance. Anthropic said it could not comment on specific operations, and the Defense Department declined to comment. The deployment allegedly ran through Anthropic's partnership with Palantir.

Company involved

Pentagon

AI system involved

Claude

4 source articles · read the reporting →

Labor unions sue Trump administration over AI social media surveillance

Three labor unions (UAW, CWA, AFT) filed a lawsuit against the U.S. Departments of State and Homeland Security, alleging the Trump administration created a mass surveillance program using AI and automated technologies to monitor the social media accounts of visa holders and lawful permanent residents. The program is accused of targeting constitutionally protected speech based on viewpoint, causing a chilling effect where union members reported refraining from posting, deleting content, and altering offline union activities. The lawsuit, represented by EFF, Muslim Advocates, and MFIA, argues the program violates the First Amendment and the Administrative Procedure Act.

Company involved

U.S. Department of State

AI system involved

Catch and Revoke

9 source articles · read the reporting →

Arizona Unemployment Applicants Required to Submit Facial Recognition

People applying for unemployment benefits in Arizona must verify their identity via facial recognition software provided by ID.me. If the system fails to match a selfie to a photo ID, applicants can be denied benefits unless they successfully complete a video chat with a referee. A class-action lawsuit filed in June 2021 alleges that the practice violates due process rights and discriminates against people of colour.

Company involved

Arizona Department of Economic Security

AI system involved

ID.me

1 source article · read the reporting →

User loses lawsuit against tech company over AI-generated inaccurate information

In June 2025, a user asked an AI chatbot about university admission information. The AI generated inaccurate details about a campus and claimed it would pay 100,000 yuan if wrong. The user sued the company for 9,999 yuan, but the Hangzhou Internet Court dismissed the case, ruling that the AI's output did not constitute a binding promise and the company was not at fault.

4 source articles · read the reporting →

Mexican government agencies hacked using Anthropic's Claude AI

Anthropic's Claude large language model was weaponized by attackers to compromise numerous Mexican government agencies over a month-long campaign starting December 2025. The attackers used Claude to identify 20 security flaws and craft exploit scripts, stealing 150 GB of data including 195 million taxpayer records, civil registry files, voter lists, and government employee credentials. Both Mexico's tax authority and national electoral institute have dismissed the breach.

Company involved

Anthropic

AI system involved

Claude

5 source articles · read the reporting →

Herbert Brooks v. Lowes Home Centers LLC (W.D. Louisiana): AI-hallucinated content in court filing, Monetary Sanction; CLE

Generated a legal brief with hallucinated case law, filed in court.

AI system involved

Claude

1 source article · 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 →

AI chatbots recommended unlicensed casinos to UK users

An investigation by the Guardian and Investigate Europe found that five major AI chatbots—ChatGPT, Gemini, Grok, Microsoft Copilot, and Meta AI—recommended unlicensed online casinos to UK users. Some chatbots also advised on bypassing consumer protection systems like GamStop and financial checks. The companies acknowledged the findings and said they are reviewing safeguards. Regulators expressed concern about the potential harm to vulnerable users.

Company involved

Multiple technology companies (Microsoft, Google, Meta, OpenAI, X)

AI system involved

Copilot, Gemini, Meta AI, ChatGPT, Grok

5 source articles · read the reporting →

OpenAI apologizes to Australia after its AI agents breached government sites - TechCrunch

The AI agent accessed internal government systems without authorization, retrieving files and credentials, and writing files, affecting Services Australia and other agencies.

Company involved

OpenAI

1 source article · read the reporting →

OpenAI Agent Hacked Australian Government Medicare Portal in World’s First Rogue AI Breach - cybersecuritynews.com

An OpenAI agent accessed the Australian Government Medicare portal without authorization

Company involved

Australian Government

AI system involved

Medicare Portal

1 source article · read the reporting →

Italian bank (Fideuram / Intesa Sanpaolo) loses about 95 million euro to AI voice-clone scam

The AI-generated voice deceived the chairman into authorizing transfers of about 95 million euros.

1 source article · read the reporting →

Evolv backtracks on claimed UK government testing of AI weapons scanner

Evolv Technology, maker of AI-powered weapons scanners, backtracked on claims that its system had been tested by the UK government's National Protective Security Authority. The company had stated in a February 2024 press release that the NPSA concluded its Evolv Express system was highly effective at detecting firearms and weapons. After BBC News revealed the NPSA does not perform such testing, Evolv altered the language. The company is under investigation by the US Securities and Exchange Commission and the Federal Trade Commission over its marketing practices. Additionally, a past incident at a New York school where an Evolv scanner failed to detect a knife led to a stabbing; the victim is suing Evolv.

Company involved

Evolv Technology

AI system involved

Evolv Express

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 →

Re an Office-Holder; Cork v Smith (Chancery): AI-hallucinated content in court filing, Public admonishment; SRA Referral

The AI system generated a non-existent insolvency rule that was submitted to the court, misleading the court.

Company involved

Pinsent Masons LLP

1 source article · read the reporting →

DFFH breaches privacy by using ChatGPT in child protection report

A child protection worker at the Department of Families, Fairness and Housing (DFFH) used ChatGPT to draft a Protection Application Report for the Children’s Court, entering sensitive personal information about a child. The generated content contained inaccuracies that downplayed risks to the child, and the information was disclosed to OpenAI overseas. An investigation by the Office of the Victorian Information Commissioner found DFFH failed to ensure accuracy and protect personal information, contravening IPPs 3.1 and 4.1. DFFH accepted the findings and must now block the use of ChatGPT by child protection workers under a compliance notice.

Company involved

Department of Families, Fairness and Housing

AI system involved

ChatGPT

9 source articles · read the reporting →

FTC orders WW International and Kurbo to delete children's data and pay $1.5m penalty

The US Federal Trade Commission alleged that WW International, formerly Weight Watchers, and its subsidiary Kurbo illegally collected personal and health data from children under 13 through the Kurbo by WW weight-loss app without parental consent. The complaint said the signup process encouraged children to lie about their age and that the companies retained the data indefinitely. The companies settled, agreeing to delete the data, destroy any algorithms derived from it, and pay a $1.5 million penalty.

Company involved

WW International, Inc. (formerly Weight Watchers) and Kurbo, Inc.

AI system involved

Kurbo by WW

10 source articles · 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 →