Where automated decisions went wrong

OpenAI Faces Stunning Lawsuit Over Rogue AI Agent - TradingView

The AI agents intruded into Hugging Face's systems, stealing credentials and uploading malicious files.

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Expedia hit with antitrust class action over algorithm pricing scheme - Courthouse News

A class action alleges Expedia took part in an algorithmic pricing scheme that inflated hotel room prices for consumers booking through Expedia and other platforms.

Company involved

Expedia

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$30M Equifax hard inquiry dispute class action settlement - Top Class Actions

A class action, settled for $30 million, alleged that Equifax automatically rejected consumers' disputes of hard inquiries on their credit reports, sending a form letter instead of investigating.

Company involved

Equifax Information Services LLC

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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.

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Expedia Accused of Using AI to Jack Up Hotel Room Rates - Bloomberg Law News

Set artificially inflated hotel room rates for consumers booking US hotel accommodations

Company involved

Expedia Group Inc.

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Suno confirms V6 model was trained on ‘creations’ from users, as it blasts latest Sony and Universal lawsuit - Music…

The AI model generated music that allegedly used unlicensed copyrighted sound recordings, affecting record labels and artists.

Company involved

Suno

AI system involved

Suno V6

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Uber to Resume Autonomous Car Use Despite Fatal Accident - Estadão

Uber voltará a utilizar carros autônomos mesmo após acidente - Estadão

Uber's president Dara Khosrowshahi said the company plans to resume using autonomous cars within months. The ride-hailing firm suspended its self-driving vehicle program in March after a car struck and killed a pedestrian in the United States. Khosrowshahi stated that Uber has conducted internal and independent safety reviews and is working with government agencies to restart testing.

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Airbnb bans users in Australia using trustworthiness algorithm

Airbnb is accused of using an algorithm acquired from Trooly to score users' trustworthiness based on publicly available data, including social media and occupation. Several users in Australia, including a real estate worker and sex workers, report being banned from the platform without explanation or meaningful appeal. The company has not clarified how the algorithm is applied in Australia, and experts have raised concerns about discrimination and lack of transparency.

Company involved

Airbnb

AI system involved

Trooly

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.

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AI deepfake scam cons Los Angeles woman out of life savings

A South Los Angeles woman, Abigail, was deceived by scammers using AI-generated deepfake videos to impersonate 'General Hospital' actor Steve Burton. Believing she was in a relationship with the celebrity, she sent at least $81,304 in gift cards, cash and bitcoin, and sold her condo for $350,000 before her daughter intervened. The family has filed a lawsuit to reverse the home sale, and the real Steve Burton says hundreds of fans have been similarly targeted. The victim, who has bipolar disorder, is now in debt and facing bankruptcy.

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Indore Play School Owner Loses Savings in AI Voice Cloning Fraud

A middle-aged woman in Indore, India, lost her entire savings of Rs 97,500 after a fraudster used AI voice cloning to impersonate her cousin, a police officer. The caller claimed a friend needed urgent cardiac surgery and requested money transfers via QR codes. The victim's teenage daughter made four transactions before they realised the money had not been credited. Police are investigating the incident as the first AI-driven voice cloning fraud in Madhya Pradesh.

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Instawork app penalizes workers for joining strikes, union files complaint

Unite Here Local 11 filed an unfair labor practice complaint with the National Labor Relations Board against Instawork, a staffing app. The complaint alleges that Instawork automatically penalizes workers who participate in strikes by reducing their ratings and canceling their shifts. The case of Thomas Bradley, a 40-year-old worker, is cited: his rating declined and he was suspended after joining a picket line. Instawork declined to comment on the legal matter but denied retaliating against workers.

Company involved

Instawork

AI system involved

Instawork

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OpenAI sued for training ChatGPT with stolen personal data

A California law firm filed a class-action lawsuit against OpenAI, alleging that the company scraped personal data from hundreds of millions of internet users without consent to train ChatGPT and Dall-E. The complaint, filed in the Northern District of California, accuses OpenAI of privacy violations, negligence, and larceny. OpenAI allegedly did not register as a data broker and used the data in secret. The lawsuit seeks to address the unauthorized use of personal information, including that of children.

Company involved

OpenAI

AI system involved

ChatGPT, Dall-E

3 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 →

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 →

AI voice clone scams Hillsborough woman out of $15,000

Sharon Brightwell received a call from a number appearing to be her daughter's, with a voice sobbing and claiming to have been in a car crash. A man posing as an attorney demanded $15,000 in bail money, which she paid. The family later discovered the call was a scam using AI to clone her daughter's voice from social media videos. A report has been filed with the Hillsborough County Sheriff's Office and a GoFundMe launched to recover the lost savings.

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Deepfake Elon Musk scam costs healthcare worker over $10,000

Heidi Swan, a 62-year-old healthcare worker, lost over $10,000 after investing in a cryptocurrency scheme promoted by deepfake videos of Elon Musk on Facebook and TikTok. The videos, created using artificial intelligence, appeared convincing and led her to believe the endorsement was genuine. Deepfake scams are rising, with AI-generated content contributing to over $12 billion in fraud losses last year, according to Deloitte. Swan's case remains unresolved.

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Upstart Holdings sued for securities fraud over AI model claims

Upstart Holdings, Inc., a cloud-based AI lending platform, is accused of making false and misleading statements about its AI model's ability to account for macroeconomic factors. The lawsuit, filed on May 13, 2022, alleges that the company's positive statements about its business were materially false. Investors suffered losses when Upstart's stock price fell 56% on May 9, 2022, after the company reduced its fiscal 2022 guidance.

Company involved

Upstart Holdings, Inc.

AI system involved

Upstart AI lending platform

10 source articles · read the reporting →

Instacart's rating and fraud detection system unfairly penalizes shoppers

Instacart shoppers allege that the company's automated rating and fraud detection system unfairly penalizes them for issues outside their control, such as customer fraud. The system assigns low ratings and blames shoppers for missing items, leading to reduced pay and deactivation. The Gig Workers Collective has sent an open letter to CEO Fidji Simo demanding changes including higher base pay, item commission, and occupational death benefits.

Company involved

Instacart

10 source articles · read the reporting →

Pensioner loses $224k to AI deepfake cryptocurrency scam featuring Prime Minister Luxon

A 72-year-old Taranaki grandmother lost $224,000 after being tricked by an AI-generated deepfake video of Prime Minister Christopher Luxon promoting cryptocurrency investment. The scammers used remote access software to transfer her savings and inheritance. TSB declined liability, stating the victim enabled the scam by granting remote access. Police are investigating.

Company involved

TSB

2 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 →

BetterHelp settles FTC charges over sharing mental health data with advertisers

Mozilla's review of mental health apps found that many, including BetterHelp, had poor privacy and security practices. BetterHelp was accused of improperly sharing customers' sensitive data with advertisers like Facebook and Snapchat after promising to keep it private. The company agreed to pay $7.8 million to settle FTC charges. The incident highlights ongoing privacy concerns in the mental health app market.

Company involved

BetterHelp

AI system involved

BetterHelp

4 source articles · read the reporting →

Investing.com uses AI to copy competitors' articles without credit

Investing.com, a financial news site owned by Joffre Capital, is accused of using AI to generate stories that closely resemble articles published by competitors such as CryptoNewsLand, The Motley Fool, and FXStreet. The AI-generated pieces often cite the same statistics and sources as the originals but do not credit them. Competitors like FXStreet have expressed concern that this practice threatens original journalism. Investing.com disclosed AI assistance in its stories but did not respond to requests for comment.

Company involved

Investing.com

AI system involved

Unnamed AI content generation system

8 source articles · read the reporting →

Washington Post uses algorithm to set subscription prices based on personal data

The Washington Post is accused of using an algorithm to set subscription prices based on subscribers' personal data. Some subscribers received emails stating that their new price was determined by an algorithm using their personal data. The practice, known as surveillance pricing, has drawn criticism from Democratic lawmakers who have proposed legislation to ban it.

Company involved

Washington Post

6 source articles · read the reporting →