Where automated decisions went wrong

DataOne asks court to toss noise lawsuit over Vineland data center - Courier-Post

The data center generated excessive and intrusive noise affecting neighbors in East Vineland.

Company involved

DataOne USA LLC

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DataOne Data Center in Vineland Sparks Protests, Microsoft Under Scrutiny

DataOne Data Center di Vineland Tuai Protes Warga, Microsoft Disorot - Telset.id

The DataOne data center in Vineland, New Jersey, is operating without permits, using gas turbines that cause air and noise pollution. It was built to supply computing power to Microsoft through a deal with Nebius, but residents were not informed until after construction began. Microsoft is facing criticism for its role in the project.

Company involved

DataOne

AI system involved

DataOne data center

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New Orleans Police Secretly Used Facial Recognition to Monitor Citizens

New Orleans police secretly used Project NOLA's facial recognition cameras to automatically alert officers to possible crime suspects, potentially violating a city ordinance requiring human review and disclosure. An investigation found the system played a role in dozens of arrests but its use was often not disclosed in police reports. The program was paused in April 2025 pending a review by the police superintendent. The ACLU has called for a permanent halt, warning of threats to privacy and civil rights.

Company involved

New Orleans Police Department

AI system involved

Project NOLA

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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

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NAACP sues xAI, alleging unlawful operation of gas turbines in Southaven

The NAACP, represented by the Southern Environmental Law Center and Earthjustice, sued xAI and its subsidiary MZX Tech, alleging it ran dozens of methane gas turbines in Southaven, Mississippi, without a Clean Air Act permit to power its Colossus 2 AI data centre. The groups say the plant may be the largest industrial source of smog-forming nitrogen oxides in the Memphis area and that nearby, largely Black neighbourhoods bear the pollution. The US Justice Department later moved to have the case dismissed, citing national security.

Company involved

xAI

AI system involved

Colossus 2 power plant

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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

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DPRK-Linked Fake AI Job Platform Targets U.S. Tech Workers with Malware

Validin researchers report that a DPRK-linked operation known as Contagious Interview is running a fake AI-powered job platform called Lenvny. The site mimics legitimate recruitment software and advertises fabricated roles at companies such as Anthropic and Yuga Labs to lure software developers, AI researchers and crypto professionals. Applicants who reach the video introduction step are prompted to 'fix' their webcam, which delivers ClickFix malware to their computer, compromising their system and personal data. The campaign is ongoing and is considered highly convincing.

Company involved

DPRK-linked threat actors (Contagious Interview campaign)

AI system involved

Lenvny (fake AI-powered interview tool)

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‘Tech Campus’ Revealed as Mega Data Center Devouring Water and Power—Residents Caught Off Guard

'기술 캠퍼스'라더니 물·전력 잡아먹는 초대형 데이터센터... 뒤늦게 안 주민들 - 한국일보

In Doña Ana County, New Mexico, a project initially described as a 'technology campus' turned out to be Project Jupiter, a massive AI data center that will use huge amounts of water and electricity. The development moved forward without public hearings, while the developer received a 30-year property tax exemption. Construction was suspended by the state Supreme Court after lawsuits over excessive water extraction and the alleged forgery of resident support letters.

AI system involved

Project Jupiter (Stargate)

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Severe flooding in Mason County relating to data center construction, residents to be reimbursed for damages

Runoff from construction of the Monarch Compute Campus, a data centre project of Fidelis New Energy with Nscale, flooded homes along University Lane in Mason County, West Virginia, after heavy rain when a section of silt fencing gave way. Residents reported water under their houses and fear mould. The site manager said the company would cover cleanup and repairs; the neighbourhood flooded again in July.

Company involved

Fidelis New Energy / Nscale

AI system involved

Monarch Compute Campus

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Acclarent's AI-Powered Surgery Tool Allegedly Injures Patients, Lawsuits Claim

Two patients allege that Acclarent's TruDi Navigation System, which uses AI to confirm device positioning during sinus surgery, misled surgeons and caused severe injuries including strokes. The FDA has received over 100 reports of malfunctions and at least ten injuries since AI was added. Lawsuits claim the company rushed the technology to market with only 80% accuracy, making the device less safe than before. Acclarent denies any causal connection, and the cases are ongoing.

Company involved

Acclarent

AI system involved

TruDi Navigation System

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Acclarent's AI-Powered Surgery Tool Allegedly Injures Patients, Lawsuits Claim

The TruDi Navigation System by Acclarent, which uses AI to confirm device positions during sinus surgery, has been linked to at least ten patient injuries including strokes, according to FDA reports and two lawsuits. Plaintiffs Erin Ralph and Donna Fernihough allege that the AI was inaccurate and misled surgeons, causing carotid artery damage and strokes in 2022. Acclarent denies the allegations, stating there is no credible evidence of a causal connection. The lawsuits are ongoing.

Company involved

Acclarent

AI system involved

TruDi Navigation System

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Attorneys in three lawsuits aimed at Nebius AI Factory work to consolidate parts of cases - WVTM

The Nebius AI Factory data center construction produced noise, dust, vibrations and raised concerns about power and water use affecting nearby residents and the Greater Birmingham Humane Society.

Company involved

Nebius AI Factory

AI system involved

Nebius AI Factory

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Nomani Investment Scam Uses AI Video Testimonials to Steal Money and Data

Cybersecurity firm ESET reported that an investment scam campaign named Nomani used AI-generated video testimonials of famous people in social media adverts to lure victims worldwide to phishing websites. The scammers harvested personal information, then telephoned victims and manipulated them into investing in non-existent products, with some taking out loans or installing remote access apps. When victims sought payouts, they were told to pay extra fees and provide ID and credit-card details, after which the fraudsters disappeared with their money and data. South Korean authorities separately said they dismantled a related fake trading platform network that defrauded victims of nearly $6.3 million.

Company involved

Nomani

AI system involved

Nomani

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Ahmedabad cyber police bust deepfake Aadhaar fraud racket, four arrested

Four men were arrested in Ahmedabad for allegedly using AI-generated deepfake videos to bypass Aadhaar's facial authentication system. They changed a victim's registered mobile number, accessed his DigiLocker, and applied for loans in his name. The accused, including Common Service Centre operators, used unauthorised Aadhaar update kits. Police are investigating whether more victims were targeted.

Company involved

Unique Identification Authority of India (UIDAI)

AI system involved

Aadhaar facial authentication system

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Supreme Court strikes down NCLT order based on AI-hallucinated judgments

The National Company Law Tribunal admitted an insolvency petition against Essel Infraprojects, relying on six AI-generated citations that were later found to be non-existent or misattributed. Essel Infraprojects appealed, and the Supreme Court set aside the order, calling the use of fake judgments catastrophic. The court directed the Bar Council of India to examine AI use in litigation and ordered a fresh decision.

Company involved

National Company Law Tribunal

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Lockport City School District's Facial Recognition System Misidentified Black Faces and Weapons

Lockport City School District deployed SN Technologies' AEGIS face and weapons detection system in January 2020. Parents and the New York Civil Liberties Union allege the system misidentifies Black people more often than white people and falsely detects weapons such as broom handles. A lawsuit was filed against the New York State Education Department seeking to ban facial recognition in schools. SN Technologies denied misleading the district.

Company involved

Lockport City School District

AI system involved

AEGIS

1 source article · read the reporting →

国内ベンチャー企業A社、AIなりすまし面談で実在エンジニアになりすまされる

A domestic Japanese logistics SaaS venture, referred to as Company A, conducted an online casual interview for an engineer role on 4 March 2026. An applicant used AI-generated video to impersonate a real engineer, Yoshii Kenbun, whose CV details had been submitted without his knowledge. The interviewer noticed discrepancies in language ability and unnatural video, and the company confirmed with Yoshii that he had not applied or attended. Company A and Yoshii publicised the incident on X the next day.

3 source articles · read the reporting →

Mumbai Cyber Police Bust Deepfake Share Trading Scam by Valueleaf

Mumbai Cyber Police arrested four individuals from Bengaluru-based advertising agency Valueleaf for allegedly circulating deepfake videos of stock market experts to deceive investors. The videos, created for Hong Kong-based First Bridge, were promoted despite knowledge of their falsity and potential financial harm. Meta flagged the content, but the accused evaded detection by increasing ad accounts and changing domain locations. The case, registered under the Bhartiya Nyaya Sanhita and Information Technology Act, is under investigation to determine the number of defrauded investors.

Company involved

Valueleaf

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Ningbo police AI falsely accuses woman in bus ad of jaywalking

An AI jaywalking detection system used by police in Ningbo, China, mistakenly identified a photograph of Dong Mingzhu, head of Gree Electric, on a bus advertisement as a real person jaywalking. Her image and name were briefly displayed on a public shaming billboard. Police acknowledged the error, deleted the photo, and stated they would update the system to distinguish advertisements from people. Gree Electric thanked the police for their response.

Company involved

Ningbo police

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Brooklyn landlord abandons facial recognition plan after tenant protests

Robert Nelson, president of Nelson Management Group, planned to install a facial recognition system at Atlantic Plaza Towers, a rent-stabilized building in Brownsville, Brooklyn. Tenants protested, citing privacy concerns and studies showing the technology disproportionately impacts people of color. After a town hall meeting, Nelson announced he was withdrawing the application with the state housing agency. The reversal was seen as a victory by tenants, who continue to push for legislation banning facial recognition in residential buildings.

Company involved

Nelson Management Group

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SenseNets silent after data leak exposes millions of people's records

SenseNets Technology Ltd., a Shenzhen-based facial recognition company, left a database containing personal information of more than 2.5 million people publicly accessible without password protection for months. Dutch security researcher Victor Gevers and the GDI Foundation discovered the exposure in July and warned the company, which did not respond. The database was secured in February after the leak was reported, and the company is reported to be conducting an internal investigation. SenseNets has declined to comment publicly.

Company involved

SenseNets Technology Ltd.

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Guangxi homeowners lose homes in facial recognition fraud

Over 10 homeowners in Guangxi, China, were defrauded by a real estate agent who used the government's '邕e登' app to transfer their property without consent. The agent tricked them into using facial recognition for what they thought was file checking, but instead the system processed property transfers. The agent has been arrested and the case is under investigation. The local government has restricted the properties and plans to upgrade the app's security.

Company involved

南宁市自然资源局

AI system involved

邕e登

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Finnish recruitment company Digital Minds used AI to analyze job applicants' messages, prompting data protection investigation

Digital Minds, a Finnish recruitment company founded by psychologists, used IBM Watson AI to analyze job applicants' social media and email messages for personality assessments. The company obtained written consent but the Finnish Data Protection Ombudsman launched an investigation, suspecting violations of data protection laws and the secrecy of correspondence. The service was used on fewer than ten applicants and has been paused pending the investigation.

Company involved

Digital Minds

AI system involved

IBM Watson

9 source articles · read the reporting →

AnyVision patents drone facial recognition technology

AnyVision, an Israeli private surveillance company, filed a US patent for drone technology that uses facial recognition to identify people on the ground. The patent describes adaptive positioning of drones to find optimal angles for accurate facial recognition. The technology is not yet in production, but the company's CEO stated it will become a reality soon. Potential privacy concerns have been raised.

Company involved

AnyVision

AI system involved

Adaptive positioning of drones for enhanced facial recognition

9 source articles · read the reporting →