AI hallucinated case law in insurance company’s filings in L.A. County house fire dispute - Los Angeles Times
AI generated false legal citations that were submitted in court, affecting the plaintiff in an insurance dispute.
- Company involved
- State Farm
- AI system involved
- Irys
1 source article · read the reporting →
SpaceXAI offering to buy homes affected by noise in Southaven - DeSoto Times-Tribune
The power plant's operation generated constant noise that affected nearby residents' quality of life, health, and property values.
- Company involved
- SpaceXAI
1 source article · read the reporting →
Fired Teacher Says AI Tainted Review And Arbitration - law360.com
The AI-generated performance evaluation contributed to the teacher's termination.
- Company involved
- Concord Public Schools
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 →
Nate misrepresented AI shopping app, used human workers instead
Nate, a startup that claimed to use AI to auto-fill customer information for purchases, actually used human workers in the Philippines to manually complete transactions for 60-100% of orders throughout 2021, according to an investigation by The Information. The company denied the claims, calling them baseless. No harm to users was reported.
- Company involved
- Nate
- AI system involved
- Nate app
8 source articles · read the reporting →
SafeRent Settles Class Action Over Tenant Screening for Voucher Holders
Mary Louis and Monica Douglas filed a class action lawsuit in 2022 alleging that SafeRent Solutions' SafeRent Score product discriminated against rental applicants in Massachusetts who held public housing vouchers, violating fair housing and consumer protection laws. SafeRent denied wrongdoing. The court approved a settlement in November 2024, and payments were distributed to eligible class members in 2025 and 2026.
- Company involved
- SafeRent Solutions, LLC
- AI system involved
- SafeRent Score
5 source articles · read the reporting →
Bought apartment with data center in the backyard: 'Unlivable'
Kjøpte leilighet med datasenter i bakgården: – Ulevelig - E24
A couple bought a new apartment in Oslo and discovered a constant humming noise from a nearby data center after moving in. The developer Obos did not inform them about the noise, even though the data center had warned about it and neighbors had complained. The couple has hired a lawyer and wants to cancel the purchase or swap to another apartment.
- Company involved
- Vaultica
1 source article · read the reporting →
Lieff Cabraser and Greer Injury Lawyers Announce Federal Class Action Lawsuit Against X.AI Corp and MZX Tech LLC for Nuisance,…
The data centers and gas turbines emitted constant noise, vibrations, and particulate matter, affecting residents' ability to use and enjoy their properties.
- Company involved
- X.AI Corp and MZX Tech LLC
- AI system involved
- Colossus I, Colossus II, MACROHARDRR, Minihard data centers and gas turbines
1 source article · read the reporting →
AI-Generated Fake Investment Websites Target Australian Fraud Analyst
A fraud analyst, Leon, was targeted by scammers who used AI to create convincing fake websites for non-existent investment firms. The scammers posed as employees of Assent Advisory and directed him to elaborate sites for APPC Capital Singapore and Thackeray Mines and Minerals Inc., complete with AI-generated images and fake details. Leon recognised the scam, but the sophistication of the AI-generated content made him second-guess his own judgment. The incident highlights how AI is enabling more convincing investment scams.
1 source article · read the reporting →
How Your Shadow Credit Score Could Decide Whether You Get an Apartment - ProPublica
Tenant screening companies assign renters a score drawn from data far wider than credit history, an industry subject to less regulation than credit scoring agencies. ProPublica reports that experts warn these algorithms can decide who gets an apartment on the basis of information applicants cannot see or correct. Kim Fuller was denied a rental application on such a score.
- Company involved
- Habitat America
- AI system involved
- RentGrow
1 source article · read the reporting →
ICE’s Mobile Fortify Facial Recognition App Misidentified a Woman Twice
During an immigration raid in Oregon, ICE agents used the Mobile Fortify facial recognition app on a detained woman to determine her identity and immigration status. The app returned two different incorrect names, according to testimony from a CBP official. ICE has claimed the app provides a definitive determination of immigration status, but this incident raises concerns about its accuracy. The misidentification could have led to wrongful removal proceedings.
- Company involved
- U.S. Immigration and Customs Enforcement (ICE)
- AI system involved
- Mobile Fortify
1 source article · read the reporting →
Florida Title Company Stops AI Deepfake Property Fraud Attempt
A title company owner in Hallandale Beach, Florida, detected an attempted property fraud using a deepfake video. The scammer posed as the owner of a vacant lot, providing a fake driver's licence and a looped video during a video call. The title company owner noticed the video was not interactive and halted the sale. The true owner's property tax bills had been sent to the Bahamas, and the scammer used a photo of a missing woman from California.
- Company involved
- Florida Title and Trust
4 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 →
Deepfake of Miami Beach realtor used in UK romance scam
A woman in the United Kingdom was deceived by a scammer who used AI-generated deepfake videos of Miami Beach real estate agent Andrés Asion. The videos, which showed Asion's face and voice, led her to believe she was in a romantic relationship with him. After she contacted the real Asion, they met and confirmed the videos were fabricated. Asion warns that such misuse of AI could happen to anyone and calls for legislative protections.
2 source articles · read the reporting →
Portland Water Bureau AI pilot offers discount to billionaire CEO
The Portland Water Bureau used a machine learning system in a randomised control trial to identify customers for its financial assistance programme. The system selected Columbia Sportswear CEO Tim Boyle, a billionaire and one of the city's largest residential water consumers, for a 40% water bill discount. Boyle declined the discount, stating it should go to someone who needs it. The bureau is testing whether the SERVUS algorithm can accurately identify customers' ability to pay.
- Company involved
- Portland Water Bureau
- AI system involved
- Smart Discount Program
1 source article · read the reporting →
Canada Investigates Landlords' Use of AI Rent-Setting Software YieldStar
The Competition Bureau of Canada is investigating allegations that major corporate landlords, including Dream Unlimited, used AI-powered software YieldStar to coordinate rent increases. Tenant advocacy groups filed over 100 complaints, claiming the software recommended above-market rents, exacerbating housing affordability. Some landlords have since halted use of YieldStar amid public backlash, while the investigation continues.
- Company involved
- Dream Unlimited
- AI system involved
- YieldStar
7 source articles · read the reporting →
DC attorney general sues 14 landlords over RealPage rent collusion
The Attorney General of Washington DC filed a lawsuit against 14 large landlords, alleging they used RealPage's YieldStar software to form “a District-wide housing cartel” that artificially inflated rents. The complaint claims RealPage's pricing algorithm used data supplied by the landlords and pressurised them to follow its rate recommendations, with one firm's internal presentation stating at least 95% compliance was expected. This alleged scheme caused residents to pay millions of dollars above fair market prices during a housing affordability crisis.
- Company involved
- Greystar Management Services
- AI system involved
- YieldStar
10 source articles · read the reporting →
Airbnb apologises after host used AI-doctored photos to claim fake damages
A London-based woman booked a Manhattan Airbnb for a 2.5-month stay but left early due to safety concerns. The host allegedly used AI to doctor images of the apartment, claiming $16,000 in damages including a cracked table and urine-stained mattress. Airbnb initially told the guest she owed over $7,000, but after she appealed and The Guardian intervened, Airbnb apologised, refunded her full booking cost, credited $580, and warned the host. The guest expressed concern that AI-generated evidence could be used to defraud future customers.
- Company involved
- Airbnb
3 source articles · 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 →
Canary Islands court fines lawyer for AI-generated false case citations
The High Court of Justice of the Canary Islands fined a lawyer €420 for including 48 false case citations generated by a general-purpose AI tool in an appeal brief. The court found the lawyer failed to verify the citations against official databases, breaching the duty of veracity and good faith. The lawyer admitted the facts and expressed remorse, leading to a reduced fine. The court also referred the matter to the local bar association for possible disciplinary action.
- Company involved
- Tribunal Superior de Justicia de Canarias
4 source articles · read the reporting →
Zillow shuts down iBuying after algorithms cause $380 million loss
Zillow shut down its Zillow Offers iBuying business after its pricing algorithms, known as Zestimates, consistently overvalued homes. The company purchased thousands of homes at above-market prices and is now selling many at a loss, expecting to lose an estimated $380 million. Zillow attributed the failure to the algorithms' inability to accurately forecast home prices in a volatile market. The company will write off $569 million in home inventory and lay off 25% of its staff.
- Company involved
- Zillow
- AI system involved
- Zestimates
5 source articles · read the reporting →
Speedcam Anywhere developers face abuse from UK drivers after app launch
Speedcam Anywhere, an app that uses AI to estimate the speed of passing vehicles, was launched in March 2022. Its developers have received abusive emails from drivers and are now hiding their identities. Google and Apple have not approved the app for distribution, and the Home Office has not vetted it for speeding prosecutions.
- AI system involved
- Speedcam Anywhere
10 source articles · read the reporting →
West Virginia Couple Targeted in AI-Generated Real Estate Scam
Raegan Bartlo received an email on August 23, 2024, that appeared to be from her title company lawyer, instructing her to wire a $255,000 down payment for her new home. The email was part of a scam using generative AI to impersonate real estate professionals. Cybersecurity officials say such scams are occurring across the country, targeting homebuyers. The Bartlos were targets, but it is unclear if they lost any money.
1 source article · 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 →