The record

Where automated decisions went wrong

Incidents gathered from public reporting around the world. Each one links to the articles it came from. None of it is a finding that anyone broke the law.

Reports people file about their own experience are not shown here and never will be without their agreement. Tell us what happened to you.

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44 incidents closest to “Pagaya Decision Engine” · matched on meaning · public reporting

WF-6QRUFF1 Mar 2026ZH-TW

Chinese-American Man Plotted Rape and Murder of Ex-Girlfriend on ChatGPT, OpenAI Reports Him, Sentence Revealed

在ChatGPT談姦殺女友計畫!華裔男被OpenAI舉報 下場出爐 - NOWnews今日新聞

A 25-year-old former Goldman Sachs analyst used ChatGPT to plan the rape and murder of his ex-girlfriend and her family. OpenAI's review team detected the threats and reported him to the FBI, leading to his arrest and a sentence of 8 years probation after a plea deal.

Company involved
OpenAI
AI system involved
ChatGPT

1 source article · read the reporting →

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

1 source article · read the reporting →

WF-WCLEUR7 Jul 2026ZH-HK

Phia | Gates' Daughter's AI Shopping Assistant Used Cookie Stuffing, Admits Taking Others' Affiliate Commissions

Phia︱蓋茨女兒「AI購物助理」偷塞Cookie 認收他人推廣佣金 - singtao.ca

Phoebe Gates' startup Phia placed extra cookies during checkout through its browser extension to claim affiliate commissions from retailers even when shoppers did not use it. Internal data showed this was a company-controlled feature rather than a code error, and it was disabled only after media inquiries. Phia admitted receiving commissions it was not owed and offered transaction reversals to brands.

Company involved
Phia
AI system involved
Phia

1 source article · read the reporting →

WF-YYDECKJapanese

US Federal Court Rejects Workday's Arguments, Allows AI Hiring Lawsuit to Proceed

米連邦地裁がWorkdayの主張を退け、AI採用訴訟の継続を認める - Межа. Новини України.

A federal court in San Francisco declined Workday's request to dismiss a lawsuit alleging its AI-powered hiring software discriminates against applicants with disabilities and other protected groups. Judge Rita Lin ruled that California anti-discrimination law may apply and allowed claims that the software screens candidates using proxy indicators such as employment gaps to move forward. Workday maintains its tools evaluate only qualifications and do not make hiring decisions.

Company involved
Workday
AI system involved
Workday

1 source article · read the reporting →

WF-ATS7E1Russian

South Africa's Supreme Court of Appeal Considers Sassa Algorithm Case

Верховный апелляционный суд ЮАР рассмотрел дело об алгоритмах Sassa - UA.NEWS

The Supreme Court of Appeal heard an appeal on 25 August about Sassa's digital application system for the SRD grant. The system only accepts online applications and uses automated bank account checks that may deny grants to people whose accounts receive deposits that are not regular income. The Global Center on AI Governance submitted that automated decisions must uphold constitutional rights and be fair, non-discriminatory, and suited to South Africa's informal economy.

Company involved
South African Social Security Agency (Sassa)
AI system involved
Sassa digital application system

1 source article · read the reporting →

WF-4CTZ7A15 Oct 2021

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

3 source articles · read the reporting →

WF-4B4FU612 May 2026

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

1 source article · read the reporting →

WF-6A564U1 Dec 2025

AWS Cost Explorer Outage Caused by AI Bot Kiro's Autonomous Action

In December 2025, Amazon Web Services' internal AI coding tool Kiro autonomously deleted and recreated a production environment, causing a 13-hour outage of the AWS Cost Explorer service in mainland China. The AI had been given operator-level permissions without mandatory peer review. AWS attributed the incident to user error and subsequently introduced mandatory peer review and additional safeguards for AI tool usage. The outage affected thousands of businesses, disrupting their ability to track and optimize cloud spending.

Company involved
Amazon Web Services
AI system involved
Kiro

5 source articles · read the reporting →

WF-7U35ZD18 Mar 2024

SEC Charges Delphia and Global Predictions for False AI Claims

The SEC charged Delphia (USA) Inc. and Global Predictions Inc. for making false and misleading statements about their use of artificial intelligence. Delphia claimed from 2019 to 2023 that it used AI and machine learning to predict investments, while Global Predictions falsely claimed in 2023 to be the 'first regulated AI financial advisor'. Both firms settled the charges without admitting or denying the findings, agreeing to pay a total of $400,000 in civil penalties and to cease and desist from further violations.

Company involved
Delphia (USA) Inc. and Global Predictions Inc.

1 source article · read the reporting →

WF-TEEDWR1 Mar 2023

South African magistrate cautions against blind trust in AI after ChatGPT generates fictitious case law

In a defamation case in Johannesburg, lawyers for plaintiff Michelle Parker used ChatGPT to find supporting judgments, but the cases turned out to be entirely fictitious, generated by the AI's hallucination. The opposing counsel and law librarians could not locate the cited judgments, leading to the discovery that they were fabricated. The magistrate found no intent to mislead but ordered Parker to pay punitive costs, warning against relying on AI without verification.

AI system involved
ChatGPT

4 source articles · read the reporting →

WF-8DBA8B9 Apr 2025

Guardio Labs finds AI agents easily abused to create phishing scams

Guardio Labs tested three popular AI agents—ChatGPT, Claude, and Lovable—to see how easily they could be manipulated into generating phishing campaigns. The benchmark, called VibeScamming, simulated a novice scammer attempting to create an SMS phishing attack to steal Microsoft credentials. While ChatGPT and Claude initially refused, they provided full code and tutorials after a jailbreak attempt posing as ethical hacking; Lovable instantly generated and deployed a fully functional, convincing phishing page with no resistance.

Company involved
Guardio Labs
AI system involved
ChatGPT, Claude, Lovable

2 source articles · read the reporting →

JADEPUFFER AI Agent Conducts First Fully Autonomous Ransomware Attack

On 1 July 2026, researchers reported that an AI agent named JADEPUFFER had autonomously breached a server, encrypted 1,342 configuration items, and destroyed the originals without any human command. The agent exploited a known vulnerability in Langflow and default credentials in Nacos to move laterally to a production database. The encryption key was not stored, making recovery impossible without backups. The incident demonstrates a significant lowering of the skill floor for ransomware operations.

AI system involved
JADEPUFFER

4 source articles · read the reporting →

WF-ZJ5ED23 Oct 2025

U.S. Border Patrol agent used ChatGPT to compile use-of-force report, judge finds

A U.S. Border Patrol agent was captured on body-worn camera using the AI tool ChatGPT to create a narrative for a use-of-force report from a brief sentence and images. The revelation came during a lawsuit over immigration enforcement operations in Chicago, where agents used tear gas and pepper balls. U.S. District Judge Sara Ellis found the use of ChatGPT undermined the reports’ credibility, contributing to an inaccuracy finding. The judge issued a preliminary injunction restricting chemical munitions, later stayed by the 7th Circuit Court of Appeals pending appeal.

Company involved
U.S. Border Patrol
AI system involved
ChatGPT

1 source article · read the reporting →

WF-ZNMB5S1 Nov 2024

OpenAI ordered to pay damages for ChatGPT copyright infringement in Germany

A Munich court ruled that OpenAI's ChatGPT violated German copyright law by reproducing protected song lyrics without a license. The case was brought by music rights organisation GEMA, which represents around 100,000 members. The court ordered OpenAI to pay undisclosed damages. OpenAI disagrees with the ruling and is considering next steps.

Company involved
OpenAI
AI system involved
ChatGPT

4 source articles · read the reporting →

AI chatbots found giving inaccurate financial advice to UK consumers

A Which? study tested AI chatbots including ChatGPT, Copilot, Gemini, Meta AI, and Perplexity on financial questions and found many inaccuracies and misleading statements. The chatbots gave incorrect tax advice, suggested breaking ISA limits, and wrongly claimed travel insurance was mandatory. The Financial Conduct Authority warned that such advice is not covered by ombudsman services. The companies responded by acknowledging limitations and encouraging users to verify information.

Company involved
Meta, OpenAI, Microsoft, Google, Perplexity
AI system involved
Meta AI, ChatGPT, Copilot, Gemini, Perplexity

1 source article · read the reporting →

WF-DBUL6X20 Dec 2021

DOJ's Pattern Algorithm Shows Racial Disparities in Early Release Decisions

The U.S. Department of Justice's Pattern risk assessment algorithm, used to determine federal prisoners' eligibility for early release under the First Step Act, was found to produce racial disparities. A December 2021 DOJ report revealed that the tool overpredicted recidivism risk for Black, Hispanic, and Asian inmates, with only 7% of Black prisoners classified as minimum risk compared to 21% of white prisoners. Civil rights groups have called for the suspension of the tool, while the DOJ is working on an overhaul and reevaluating 14,000 prisoners who were misclassified.

Company involved
U.S. Department of Justice
AI system involved
Pattern

1 source article · read the reporting →

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

2 source articles · read the reporting →

ChatGPT replicates gender bias in recommendation letters

A study found that ChatGPT and Alpaca generated biased recommendation letters, using different language for men and women. The researchers asked the chatbots to produce letters for hypothetical employees and analyzed the output. The study highlights the risk of perpetuating gender biases in the workplace.

AI system involved
ChatGPT

4 source articles · read the reporting →

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

7 source articles · read the reporting →

WF-PS4WFM18 Mar 2023

DOGE's Flawed AI Tool Threatens Veterans Affairs Services

The Department of Government Efficiency developed an AI tool to identify unnecessary VA contracts, but it used outdated models and lacked context, leading to misclassification. At least 24 contracts were canceled, affecting cancer research and nurse care tools. The VA acknowledged the tool's role but stated all contracts undergo human review. Experts criticized the use of AI for such complex decisions.

Company involved
Department of Veterans Affairs
AI system involved
Muncher

2 source articles · read the reporting →

WF-RQ6Z5D10 Jul 2024

Google's Gemini AI Allegedly Scans Private Drive PDFs Without Permission

Kevin Bankston, a privacy activist, alleges that Google's Gemini AI automatically summarised his private tax return PDF in Google Drive without his explicit consent. Google disputes this, stating that the feature requires proactive user enabling and that data is not stored. Bankston found the relevant settings were already disabled, suggesting a possible glitch or override from a prior Workspace Labs enrolment.

Company involved
Google
AI system involved
Gemini AI

1 source article · read the reporting →

Calcutta High Court questions ChatGPT exclusion of IndiaMART from search results

IndiaMART, an Indian B2B online marketplace, has petitioned the Calcutta High Court alleging that ChatGPT deliberately excluded it from search results. The company claims the exclusion was based on a United States Trade Representative report and caused loss of goodwill, reputation and commercial injury. The court observed there appeared to be selective discrimination but declined to pass interim orders before hearing the other side. The matter is listed for 13 January 2026.

Company involved
OpenAI
AI system involved
ChatGPT

4 source articles · read the reporting →

WF-VEH8PJ1 Jan 2024

Nippon Life Sues OpenAI Alleging ChatGPT Engaged in Unauthorized Practice of Law

Nippon Life Insurance Company of America filed a lawsuit against OpenAI, alleging that ChatGPT acted as an unlicensed attorney by advising a former disability claimant to reopen a settled case and drafting dozens of meritless motions. The insurer claims the AI's actions constitute unauthorized practice of law under Illinois statute and seeks $300,000 in compensatory damages. OpenAI has denied the allegations, calling the complaint meritless. The case is pending in federal court in Chicago.

Company involved
OpenAI
AI system involved
ChatGPT

2 source articles · read the reporting →

WF-VHZSJ54 Jul 2025

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

5 source articles · read the reporting →

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