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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AI detector scores banned as evidence at Yale and Johns Hopkins, vendor conflict exposed - Pasquale Pillitteri

The system flagged student assignments as AI-generated, potentially leading to academic misconduct accusations.

Company involved

Yale University and Johns Hopkins University

AI system involved

Turnitin AI detector

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South African junior lawyer referred to council after AI generates fake case law

A junior advocate in South Africa used the AI tool Legal Genius to draft court submissions for an urgent licensing dispute. The written arguments contained multiple non-existent case citations, which the presiding judge discovered. The junior counsel admitted to using the AI tool, apologised, and was referred to the Legal Practice Council for investigation, while the senior counsel also apologised for conducting only a 'sense-check'.

Company involved

Northbound Processing legal team

AI system involved

Legal Genius

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Melbourne lawyer referred for using AI-generated fake case citations in family court

A Melbourne lawyer used AI software Leap to generate a list of case citations for a family court hearing. The citations were fake, causing the hearing to be adjourned. The lawyer apologized and paid costs, but was referred to the Victorian Legal Services Board and Commissioner for investigation. The software vendor Leap stated that a verification process was available but not used by the lawyer.

AI system involved

Leap

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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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Allen Institute's Ask Delphi AI Delivers Racist Ethical Judgments

Allen Institute for AI launched a research prototype called Ask Delphi that gives ethical advice. Users quickly found that the AI gave racist judgments, such as deeming a black man walking towards you at night as unacceptable while a white man was fine. The institute acknowledged the bias and added disclaimers, emphasising it was an experiment meant to highlight the gap between machine and human moral reasoning. Critics warn that the tool could cause harm by lending moral authority to prejudiced outputs.

Company involved

Allen Institute for AI

AI system involved

Ask Delphi

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TRT-RS's Galileu AI Detects Prompt Injection Attempt in Legal Petition

The Galileu AI system, developed by the Tribunal Regional do Trabalho da 4ª Região (TRT-RS) and nationalised by the Conselho Superior da Justiça do Trabalho (CSJT), detected a prompt injection attempt in a petition filed at the 3rd Labour Court of Parauapebas, Pará. The system alerted the magistrate, who reviewed the content and made a decision based on human verification, in line with judicial AI supervision requirements. The court reported that the system prevented the malicious content from being processed and highlighted the importance of institutional AI tools with security measures.

Company involved

Tribunal Regional do Trabalho da 4ª Região

AI system involved

Galileu

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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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Australian Research Council faces allegations of ChatGPT use in peer review

The Australian Research Council is facing allegations that some peer reviewers used ChatGPT to write assessor reports for Discovery Project grant proposals. Researchers reported generic wording and even the phrase 'Regenerate response' in feedback, suggesting AI generation. One researcher's complaint led to the removal of the report, and the education minister called the use unacceptable, instructing the ARC to prevent it. The ARC stated that peer reviewers should not use AI and that confidentiality policies apply.

Company involved

Australian Research Council

AI system involved

ChatGPT

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IBM Watson for Oncology recommended unsafe cancer treatments

Internal IBM documents reveal that its Watson for Oncology system often provided erroneous cancer treatment advice, including 'multiple examples of unsafe and incorrect treatment recommendations'. The problems were attributed to training on a small number of synthetic cases and the expertise of a few specialists rather than real patient data or established guidelines. The system was promoted to hospitals and physicians worldwide. It is unclear whether any patients were harmed as a result.

Company involved

IBM

AI system involved

Watson for Oncology

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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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Researchers hide prompts to manipulate AI peer review

Nikkei found hidden prompts in 17 preprints on arXiv that instructed AI tools to give the papers positive reviews and ignore negatives. The manuscripts were linked to 14 academic institutions, including Waseda University, KAIST, Peking University, the National University of Singapore, the University of Washington and Columbia University. At least one paper was set to be withdrawn, while some researchers defended the prompts as a check on reviewers who improperly use AI.

Company involved

Multiple academic institutions

AI system involved

arXiv

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Deloitte to refund Australian government after AI-generated report errors

Deloitte used generative AI (Azure OpenAI GPT-4o) to help produce an independent assurance review for Australia's Department of Employment and Workplace Relations. The report, published in July 2025, contained multiple errors including non-existent academic references and a fabricated court case. After the errors were flagged, Deloitte acknowledged the AI use and agreed to refund the final instalment of the A$439,000 contract. The report was corrected, but its substance and recommendations remained unchanged.

Company involved

Deloitte

AI system involved

Azure OpenAI GPT-4o

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BNT Host and Doctor Used in AI Deepfake Scam for Fake Medicine

A deepfake video was created using artificial intelligence, falsely depicting BNT host Simeon Ivanov and Dr. Spas Spaskov endorsing an unregistered medicine. The video, which altered a real television appearance, was posted on social media as a scam advertisement. The public television reported the fake publication, and it was subsequently removed. The incident highlights the growing use of AI-generated deepfakes for fraud.

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Deepfake bot submitted 1,001 comments to Idaho Medicaid waiver website

A researcher created a bot that generated and submitted 1,001 deepfake comments to the federal public comment website for the Idaho Medicaid reform waiver in October 2019. The comments were indistinguishable from human submissions, and survey respondents could not tell them apart from real comments. The researcher later withdrew the comments. The study highlights the vulnerability of federal comment processes to automated manipulation.

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ChatGPT fails to debunk election misinformation during testing

Proof News tested five leading AI chatbots on five examples of election misinformation. ChatGPT, developed by OpenAI, failed to clearly debunk any of the false claims, while other chatbots like Perplexity and Copilot performed better. OpenAI had promised safeguards but did not implement them effectively. The company did not respond to inquiries.

Company involved

OpenAI

AI system involved

ChatGPT

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DeepScore markets facial and voice analysis app for trustworthiness scoring despite experts' doubts

DeepScore, a Tokyo-based company, is marketing an app that uses facial and voice recognition to score people's trustworthiness for lenders and insurers in Japan, Indonesia, Vietnam and the Philippines. The company says the app can detect deception with 70 per cent accuracy, but researchers and privacy advocates say there is no reliable scientific basis for such judgments and warn of discrimination and privacy harms. The chief executive said the system is only one part of lenders' and insurers' decision-making and that people can choose not to use it. Critics respond that an unequal balance of power makes consent difficult.

Company involved

DeepScore

AI system involved

DeepScore

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Hospitals use Epic AI to predict Covid-19 decline without validation

Dozens of hospitals across the US are using Epic's deterioration index AI system to predict which Covid-19 patients will become critically ill, despite the tool not being validated for the new disease. The rapid deployment during the pandemic bypassed normal testing and validation processes.

AI system involved

Deterioration index

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Joann LeDoux v. Outliers, Inc. (2) (W.D. Washington): AI-hallucinated content in court filing, Expert Brief excluded/struck

The AI-generated hallucinated citations in an expert report led to the exclusion of the expert and dismissal of the plaintiff's case.

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Spanish Supreme Court orders release of BOSCO algorithm code for social electricity bonus

The Spanish NGO Civio won a Supreme Court case forcing the government to release the source code of BOSCO, the algorithm that decides eligibility for the social electricity bonus (bono social eléctrico). Civio had demonstrated in 2019 that BOSCO contained serious errors that denied the benefit to vulnerable people who met the requirements. The government had refused to disclose the code, citing intellectual property. The Supreme Court ruled that transparency must prevail, setting a precedent for public access to automated decision-making systems.

Company involved

Ministerio para la Transición Ecológica (Gobierno de España)

AI system involved

BOSCO

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Study finds Midjourney, DALL-E 2, Stable Diffusion accept over 85% of fake news prompts

A study by AI startup Logically tested Midjourney, DALL-E 2, and Stable Diffusion and found that they accepted over 85% of prompts seeking to generate fake political news. The systems generated images of ballot stuffing, small boat arrivals, and explosions. Logically warned that the lack of moderation could pose threats to upcoming elections. Stability AI responded by stating its ethical use license and measures to prevent misuse.

Company involved

Midjourney, OpenAI, Stability AI

AI system involved

Midjourney, DALL-E 2, Stable Diffusion

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Answer.AI tests Devin and reports 14 failures in 20 tasks

Answer.AI's team tested Devin, an autonomous AI coding assistant, on 20 real-world tasks over a month. Devin succeeded in only 3 tasks, failed 14, and was inconclusive in 3. The team found Devin often produced overly complex or hallucinated solutions and could not recognize fundamental blockers. They ultimately decided to stick with tools that allow more human control.

AI system involved

Devin

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LINAGORA closes Lucie 7B after user mockery

LINAGORA, a French open-source software company, launched a beta version of its large language model Lucie 7B. The model was intended to be a transparent and ethical alternative to big tech AI. However, after users tested it and highlighted its shortcomings, the model was mocked online. LINAGORA subsequently closed the platform to address the issues and collect more data.

Company involved

LINAGORA

AI system involved

Lucie 7B

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OpenAI accuses DeepSeek of inappropriately using its data

OpenAI has accused Chinese AI company DeepSeek of inappropriately using data from its ChatGPT model to train DeepSeek's own large language model. The allegation involves a technique called distillation, where one model is trained using outputs from another. OpenAI said it is reviewing indications of the misuse and will share more information. DeepSeek has not responded to the accusation.

Company involved

DeepSeek

AI system involved

DeepSeek

6 source articles · read the reporting →