Where automated decisions went wrong

In-house counsel group accuses rival of training AI on its materials - Reuters

In-house counsel group accuses rival of training AI on its materials Reuters

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"Sony Music" and "Warner" Sue "Anthropic" for Alleged Copyrighted Works Theft

"سوني ميوزيك" و"وارنر" تقاضيان "أنثروبيك" بتهمة سرقة الأعمال المحمية بحقوق الملكية الفكرية - العربية

Sony Music, Warner, and a number of music publishers filed a lawsuit against AI company Anthropic and its co-founders, Dario Amodei and Benjamin Mann. They accuse the company of conducting a blatant campaign to pirate copyrighted works through torrenting, scraping, and illegal downloading to train its Claude AI model.

Company involved

Anthropic

AI system involved

Claude

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Job seeker asks First Circuit to revive class action over AI interviewing tool

Massachusetts financial consultant Mozart Saint Cyr leads a proposed class of job applicants who say JPMorgan Chase's use of HireVue one-way video interviews amounted to a lie detector test banned by state law. After a federal judge dismissed the case, they asked the First Circuit to revive it.

Company involved

JPMorgan Chase

AI system involved

HireVue one-way video interview

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Hachette withdraws Shy Girl novel amid AI writing allegations

Hachette Book Group withdrew the horror novel Shy Girl by Mia Ballard from sale in the UK and cancelled its US release after readers alleged that portions of the text were generated by AI. The author denied personally using AI, stating that an acquaintance she hired for an earlier self-published version had incorporated AI tools. The publisher conducted an internal review and stated it remains committed to protecting original creative expression. The author reported severe mental health impacts and reputational damage as a result of the controversy.

Company involved

Hachette Book Group

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California newsroom replaces dozens of laid-off reporters with AI writers - New York Post

AI-generated articles replaced human-written stories, leading to layoffs of dozens of reporters and reduced local news coverage.

Company involved

McClatchy Media

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Meazure Learning Agrees $1.35m California Bar Exam Class-Action Settlement - Lawyer Monthly

The exam software experienced technical failures that prevented candidates from logging in or completing the California bar exam.

Company involved

Meazure Learning

AI system involved

ProctorU

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Shaun Rein's voice cloned by AI for unauthorised audiobook deepfake

Author Shaun Rein discovered deepfake YouTube videos of himself reading chapters of his book, published by John Murray Business. The videos used AI to clone his voice without permission, raising concerns about copyright breaches. Rein suggested that such video content represents a new challenge for publishers in combating AI-driven copyright infringement.

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Round Hill Sues Anthropic and Suno for Alleged Use of Songs to Train AI Models

Round Hill demanda a Anthropic y Suno por presunto uso de canciones para entrenar sus modelos de IA - La…

Round Hill Music sued Anthropic and Suno in a California federal court, alleging the AI companies misused hundreds of its copyrighted songs to train their systems. Anthropic allegedly used lyrics from at least 500 songs—including works by James Brown, The Kinks, and the Goo Goo Dolls—to train its Claude chatbot, while Suno used the same songs for its music generation AI. The publisher says it may add thousands more compositions and claims damages could exceed one billion dollars.

AI system involved

Claude,Suno music generation AI

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KPMG Australia partner fined over $10,000 for AI cheating on internal exams

More than two dozen KPMG Australia staff, including a partner, used artificial intelligence to cheat on internal exams since July. The partner will be fined more than $10,000 for using AI in a training course about AI. KPMG has upgraded its detection processes after previously tackling widespread cheating on internal tests between 2016 and 2020.

Company involved

KPMG Australia

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Deloitte report for N.L. healthcare contains likely AI-generated false citations

Newfoundland and Labrador's $1.6 million Health Human Resources Plan, authored by Deloitte, contains at least four citations to research papers that do not exist, likely generated by artificial intelligence. The errors were discovered after the report was published by the Department of Health and Community Services in May. Researchers named in the false citations confirmed their work was misattributed and the papers are nonexistent. The provincial government and Deloitte have not responded to questions about the report.

Company involved

Deloitte

AI system involved

Azure OpenAI

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Algorithmic Pricing Glitch Causes $24 Million Book Listing on Amazon

Two booksellers on Amazon, profnath and bordeebook, used algorithmic pricing to automatically adjust their prices relative to each other. Due to a lack of upper price limits, their algorithms entered a feedback loop, driving the price of a used copy of 'The Making of a Fly' to over $23 million. The error was discovered by a researcher and the price was later manually corrected by one of the sellers. No purchase was made at the inflated price.

Company involved

profnath and bordeebook

AI system involved

Amazon algorithmic pricing

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ChatGPT replica of author's book appears on Amazon before release

Chris Cowell, a software developer, spent over a year writing a technical book. Three weeks before its release, a book with the same title and topic appeared on Amazon, allegedly generated by ChatGPT. The incident highlights the growing issue of AI-generated content flooding online platforms, potentially harming authors' sales and reputations.

AI system involved

ChatGPT

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McKinsey's Lilli AI Platform Hacked, Exposing 46 Million Chat Messages

Security researchers at CodeWall used an autonomous offensive agent to discover a SQL injection vulnerability in McKinsey's internal AI platform, Lilli. The vulnerability allowed unauthenticated access to the production database, exposing 46.5 million chat messages, 728,000 files, and 57,000 user accounts. The researchers responsibly disclosed the issue to McKinsey, who patched the endpoints within days. No data was exfiltrated or misused, and no disruption occurred.

Company involved

McKinsey & Company

AI system involved

Lilli

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Elsevier Scopus ranking gamed by fake journals with cross-citations

Three journals from Addleton Academic Publishers appeared in the top 10 of Elsevier's Scopus CiteScore philosophy ranking due to extensive cross-citation and automatically generated papers with fake authors and affiliations. The ranking is used by Jagiellonian University and other institutions for hiring, awards and promotions, meaning three legitimate journals were pushed into a lower tier. The publisher later moved the journals to an Indian entity and Scopus removed four Addleton titles for 'Publication Concerns'.

Company involved

Jagiellonian University

AI system involved

Scopus CiteScore

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LLMjacking Attack Leverages Stolen Credentials to Exploit Cloud LLMs

The Sysdig Threat Research Team observed an attack where stolen cloud credentials were used to access cloud-hosted large language model services. The attackers targeted a vulnerable Laravel system to obtain credentials, then used them to invoke models like Anthropic Claude on AWS Bedrock. They intended to sell LLM access to other cybercriminals, potentially costing victims over $46,000 per day. The attack involved checking credentials against ten AI services and using a reverse proxy to manage access.

AI system involved

Claude (v2/v3) on AWS Bedrock

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Parents sue Hingham Public Schools over AI project D grade

The parents of a Hingham High School senior allege the school unfairly punished him for using AI on a social studies project, giving him a D and Saturday detention despite no handbook rule against AI. They say the grade kept him out of the National Honor Society and threatens his applications to top-tier colleges. The family sued Hingham High School administration and the school district in Plymouth County District Court, seeking a grade change and NHS admission. Hingham Public Schools has declined to comment, citing ongoing litigation.

Company involved

Hingham Public Schools

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Gamma AI Presentation Tool Exploited in Multi-Stage Phishing Campaign

Threat actors used Gamma, an AI-powered presentation builder, to host a page that redirected recipients to a fake Microsoft SharePoint login portal. Emails sent from compromised legitimate accounts passed authentication checks, while a Cloudflare Turnstile blocked automated security scanners. An adversary-in-the-middle framework validated credentials in real time and captured session cookies, enabling multi-factor authentication bypass on Microsoft accounts. Abnormal reported the campaign on 15 April 2025.

AI system involved

Gamma

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Houston teachers sue over secret EVAAS evaluation algorithm

Houston Independent School District used the SAS Institute's EVAAS system, a proprietary algorithm, to evaluate teacher performance based on student test scores. The Houston Federation of Teachers and several teachers sued in 2014, alleging the system violated their Fourteenth Amendment procedural due process rights because the algorithm is a trade secret and teachers cannot verify the accuracy of their scores. A federal magistrate judge refused to dismiss the procedural due process claims in May 2017, ruling that teachers must have an opportunity to test the accuracy of the scores that could cost them their jobs.

Company involved

Houston Independent School District

AI system involved

Educational Value-Added Assessment System (EVAAS)

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Chicago Tribune sues Perplexity AI for copyright infringement

Chicago Tribune Company, LLC filed a lawsuit against Perplexity AI, Inc. in the Southern District of New York on December 4, 2025. The complaint alleges copyright infringement under 17 U.S.C. § 501. The case is assigned to Judge Loretta A. Preska.

Company involved

Perplexity AI, Inc.

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Perplexity sued by Dow Jones for alleged copyright infringement

Perplexity, an AI search engine, was sued by Dow Jones, the publisher of the Wall Street Journal and New York Post, on October 21, 2024. The lawsuit alleges that Perplexity's AI reproduces copyrighted articles without permission. Perplexity denies the allegations and states it responded to outreach from News Corp before the lawsuit was filed.

Company involved

Perplexity

AI system involved

Perplexity

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Springer Nature book on machine learning contains fabricated citations

A book titled 'Mastering Machine Learning: From Basics to Advanced' published by Springer Nature in April 2026 was found to contain numerous citations that either did not exist or had substantial errors. Retraction Watch checked 18 of the 46 citations and found two-thirds were problematic, with three researchers confirming the cited works were fake or erroneous. The citations appear to have been generated by a large language model, and the book contains no declaration of AI use. Springer Nature is investigating the matter.

Company involved

Springer Nature

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McDonald’s AI Hiring Platform Exposes 64 Million Applicants’ Data Due to Default Password

In late June 2025, security researchers discovered that McDonald’s AI-powered hiring platform, McHire, had a critical security flaw. A default admin password of '123456' allowed access to a live dashboard containing sensitive data of nearly 64 million job applicants. The researchers also found an insecure direct object reference vulnerability that could expose full applicant profiles and chat logs. McDonald’s and the platform’s vendor, Paradox.ai, quickly fixed the issues and stated that only five records were viewed by the researchers, with no public data leak.

Company involved

McDonald's

AI system involved

McHire

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Authors including Mike Huckabee sue Meta, Microsoft over AI training data

Former Arkansas Governor Mike Huckabee and other authors have filed a lawsuit against Meta, Microsoft, EleutherAI, and Bloomberg, alleging that their copyrighted books were used without permission to train AI models. The suit centers on the Books3 dataset, part of the Pile, which contains over 180,000 works. The authors claim the companies pirated their work and incorporated it into training data without compensation. The case is the latest in a series of copyright lawsuits against AI companies.

Company involved

Meta, Microsoft, EleutherAI, Bloomberg

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KPMG drops AI report after false case studies exposed

KPMG removed a global report on AI after multiple case studies were found to be inaccurate and apparently generated from AI hallucinations. The report falsely claimed that UBS, NHS Greater Manchester, Swiss Federal Railways and Transport for London used AI agents in various ways. The companies denied the claims, and KPMG took the report down while reviewing its production.

Company involved

KPMG

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