Where automated decisions went wrong

Uber fined €825 million for suspending drivers through algorithms without human review - MediaNama

Uber fined €825 million for suspending drivers through algorithms without human review MediaNama

1 source article · read the reporting →

AI power users claim Anthropic duped them with subscriptions, and they’re taking it to court - theverge.com

Anthropic's Max plan subscription limits were less than advertised, affecting subscribers who paid $100-$200 per month.

Company involved

Anthropic

AI system involved

Claude

1 source article · read the reporting →

AI Hiring Platform Faces FCRA Class Action Over Data Use | Kistler et al. v. Eightfold AI Inc.

The AI platform screened job applicants, affecting their hiring prospects.

Company involved

Eightfold AI

AI system involved

Eightfold AI

1 source article · read the reporting →

Google AI Search Shows Product Prices 21.6% Higher

بحث غوغل بالذكاء الاصطناعي يعرض أسعارًا أعلى بـ 21.6% للمنتجات - وكالة عمون الاخبارية

A study found that Google's AI Mode shows the same products at prices 21.6% higher on average compared to traditional search. The primary seller for the same product differed nearly 50% of the time, suggesting AI Mode prioritizes different sellers and is less focused on low prices. Google stated that all shopping results, including AI Mode, use the same Shopping Graph data source.

Company involved

Google

AI system involved

AI Mode

1 source article · read the reporting →

Body Shop Owners Unhappy with Insurers' AI Repair Estimates

During the pandemic, insurers accelerated the use of AI and photo-based tools to estimate car repair costs. Body shop owners say the estimates are often inaccurate, missing hidden damage and leading to more time haggling over prices. The insurance industry acknowledges the technology is new and evolving, but repairers argue it cannot replace in-person inspections.

Company involved

Various insurance companies

AI system involved

AI-based photo estimation tools (e.g., CCC Smart Estimate, Tractable)

1 source article · read the reporting →

Uber's Secretive 'Upfront Fares' Algorithm Cuts Driver Pay in Many Cities

Uber introduced an opaque algorithm called 'Upfront Fares' to calculate driver pay in 24 U.S. cities, replacing the previous time-and-distance-based rate. Drivers report lower and unpredictable earnings, with Uber taking a larger cut of fares. The company claims the change gives drivers more control, but critics say the secrecy makes it impossible to verify fair pay. The algorithm may learn the lowest rate drivers will accept, potentially driving down wages.

Company involved

Uber

AI system involved

Upfront Fares

3 source articles · read the reporting →

Dutch city uses black-box algorithm for home valuation

In 2016, the municipality of Castricum, Netherlands, used an algorithm to set the WOZ value of a resident's home at €320,000, affecting their property tax. The resident challenged the valuation, arguing earthquake damage reduced the value, but the municipality could not explain how the algorithm arrived at the figure. On appeal, an Amsterdam court upheld the valuation, finding it reasonable based on comparable sales, but ordered the municipality to pay court costs for failing to provide an explanation as required by GDPR.

Company involved

Municipality of Castricum

1 source article · read the reporting →

Arity collected drivers' data via apps for insurance scores

Popular smartphone apps including Life360, MyRadar and GasBuddy reportedly shared users' location and motion data with Arity, an Allstate-owned company. Arity used the data to calculate driving scores that could be sold to car insurers to set rates. Users were said not to be clearly informed that their data would be used for insurance pricing. Life360 and Arity stated that users had to opt in and that no personally identifiable driving data was shared without consent.

Company involved

Arity

AI system involved

Arity IQ network

2 source articles · read the reporting →

Uber's pricing algorithm surged prices during London Bridge attack

On June 3, 2017, during a terrorist attack on London Bridge, Uber's dynamic pricing algorithm increased ride prices by over 200% for 43 minutes. Customers attempting to flee the area faced surge pricing. The algorithm automatically adjusted prices based on supply and demand without accounting for the emergency.

Company involved

Uber

7 source articles · read the reporting →

RealPage's YieldStar algorithm pushes rents higher for tenants

RealPage's YieldStar algorithm uses private competitor data to recommend rent increases for apartment units. Landlords adopt up to 90% of the suggestions, leading to higher rents for tenants. Critics allege the software may facilitate indirect price-fixing in violation of antitrust law. The company denies wrongdoing and says the software helps eliminate collusion.

Company involved

RealPage

AI system involved

YieldStar

10 source articles · read the reporting →

Air Canada Chatbot Fabricates Discount, Leading to Court Case

Air Canada's customer service chatbot allegedly fabricated a discount during a conversation with a customer last year. The incident resulted in a court case against the airline. Insurer Armilla stated that its new AI mishap policy would have covered the loss from selling tickets at the discounted price if the chatbot was found to have underperformed.

Company involved

Air Canada

AI system involved

chatbot

6 source articles · read the reporting →

UDR Sued Over Alleged Use of RealPage Algorithm to Set Rents in San Diego

A class action lawsuit alleges that UDR, Inc. used RealPage's YieldStar algorithmic pricing software to set rental rates and occupancy levels for its San Diego properties, in violation of a local ordinance. The suit claims the software relied on nonpublic competitor data, contributing to inflated rents and making housing less affordable. The lawsuit, filed in July 2026, seeks to represent all affected tenants. UDR has previously acknowledged using YieldStar as one tool among others in its decision-making.

Company involved

UDR, Inc.

AI system involved

RealPage YieldStar

1 source article · read the reporting →

UIUC researchers use OpenAI API to automate phone scams for under a dollar

Researchers at the University of Illinois Urbana-Champaign used OpenAI's Realtime API to create AI agents that can autonomously execute phone scams. The agents successfully performed bank account transfers and credential theft at an average cost of $0.75 per scam. OpenAI acknowledged the experiment and pointed to its safety policies.

Company involved

University of Illinois Urbana-Champaign

AI system involved

GPT-4o Realtime API

6 source articles · read the reporting →

Uber and Lyft pricing algorithms charge more in non-white areas

A study of over 100 million rides in Chicago between November 2018 and December 2019 found that Uber and Lyft's pricing algorithms charged higher fares per mile for trips to or from neighbourhoods with higher proportions of non-white residents. The researchers analysed trip data against census demographics and found no statistical link to higher demand in those areas. Both companies acknowledged the study and said they would review the findings, but no changes have been reported.

Company involved

Uber

AI system involved

Uber pricing algorithm

10 source articles · read the reporting →

Shipt's new V2 algorithm reduces pay for 41% of workers, study finds

A study by MIT Media Lab and Coworker.org found that Shipt's new V2 payment algorithm reduced pay for 41% of workers by an average of 11% per shop. The algorithm, rolled out in September 2020, replaced a transparent payment system with a black-box model. Workers pooled data to analyze the impact, revealing uneven distribution of earnings.

Company involved

Shipt

AI system involved

V2

10 source articles · read the reporting →

Allstate's proposed retention model charged big spenders more in Maryland

Allstate proposed an auto insurance rate adjustment plan in Maryland using a retention model algorithm that varied premium changes based on existing premiums. The algorithm would have increased rates up to 20% for customers already paying the highest premiums while capping increases at 5% for others, and would have denied meaningful discounts to thousands owed reductions. The Maryland Insurance Administration rejected the plan as discriminatory, but Allstate claims it was withdrawn and has continued proposing similar models elsewhere. The proposal never took effect in Maryland.

Company involved

Allstate Corporation

AI system involved

retention model

9 source articles · read the reporting →

Study finds Italian car insurers charge more based on birthplace

A study by the Universities of Padua, Udine and Carnegie Mellon found that Italian car insurers, including Genertel, Mps, Quixa and Con.Te, use birthplace and citizenship in pricing algorithms, charging some drivers over €1,000 more. The practice was ruled against in a 2018 decree involving Linear, but the study says it continues. The companies contacted denied or explained the findings.

Company involved

Genertel, Mps, Quixa, Con.Te

8 source articles · read the reporting →

Uber algorithm reinforced gender pay gap in compensation offers to new hires

Uber used an algorithm to determine compensation offers for new hires, allegedly paying women less than men for similar roles. The algorithm was designed to protect existing shareholders and save money, but it reinforced existing gender pay gaps. The system is now being altered, according to The Information.

Company involved

Uber

7 source articles · read the reporting →

Airbnb smart-pricing algorithm increased racial revenue gap, study finds

A study by Carnegie Mellon University found that Airbnb's smart-pricing algorithm increased the revenue gap between White and Black hosts, even though it narrowed the gap among hosts who adopted it. The algorithm, which sets daily prices automatically, was adopted by fewer Black hosts, so its suggested prices were closer to the optimum for White hosts. The researchers said the tool could reduce racial disparities only if more Black hosts adopted it.

Company involved

Airbnb

AI system involved

Airbnb smart-pricing algorithm

10 source articles · read the reporting →

Amazon sellers lose thousands after RepricerExpress pricing glitch

A software glitch in RepricerExpress's automated repricing system caused products sold by Amazon sellers to be priced at 1p, leading to significant financial losses for the sellers. RepricerExpress apologised but did not offer compensation, while Amazon said it had reached out to affected sellers but many reported no response. Some sellers have instructed lawyers to take legal action against RepricerExpress and Amazon.

Company involved

RepricerExpress

AI system involved

RepricerExpress

10 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 →

OpenAI's Operator AI spent $31 on a dozen eggs for a journalist

Geoffrey A. Fowler, a Washington Post columnist, asked OpenAI's Operator AI agent to find cheap eggs in his neighborhood. Instead, the AI autonomously ordered a dozen eggs for $31 and had them delivered. The incident highlights the AI's inability to follow cost-saving instructions, resulting in a financial loss for the user.

Company involved

OpenAI

AI system involved

Operator

3 source articles · read the reporting →

Uber and Amazon algorithms pay different wages for same work

A study by law professor Veena Dubal alleges that Uber and Amazon use AI algorithms to offer different pay rates to gig workers doing identical work. The algorithms are said to calculate the lowest wage a driver will accept based on personal data. Uber denies tailoring individual fares, and the California Labor Commission's lawsuit against Uber and Lyft is ongoing.

Company involved

Uber

10 source articles · read the reporting →

Uber surge pricing capped by NSW government after commuters overcharged during rail shutdown

During a city rail network shutdown in March 2023, Uber's surge pricing algorithm charged commuters hundreds of dollars above normal fares. One passenger was charged $500 for a trip from Sydney to Mount Annan that usually costs $40. Uber apologized and reimbursed affected customers. The NSW government then made an agreement with Uber to cap surge pricing during public transport disruptions.

Company involved

Uber

AI system involved

Uber surge pricing

6 source articles · read the reporting →