Where automated decisions went wrong

AI Selects Layoff Targets, Sparking Gender Discrimination Lawsuit in the U.S.

AIが解雇対象を選別…米国で「女性差別」訴訟に発展 - BigGo ファイナンス

A Brookings Institution report found that 86% of 6.1 million U.S. workers at high risk of AI-driven job loss are women. Meta is facing a lawsuit from 26 employees who allege the company used AI to select layoff targets, discriminating against those on parental or medical leave by using metrics like AI usage history and keystroke counts.

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ACLU Says in FTC Complaint That Aon’s AI Tools Discriminatory

The system screened out job applicants based on personality tests, video interviews, and cognitive assessments, affecting autistic, neurodivergent, and people of color.

AI system involved

ADEPT-15, gridChallenge

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Apple, Amazon, Meta, Microsoft, Nvidia, and Samsung face class action suits over AI voice training - cryptobriefing.com

The AI voice models were trained on the plaintiffs' voice recordings without their consent.

Company involved

Apple, Amazon, Meta, Microsoft, Nvidia, Samsung, Alphabet, Adobe, ElevenLabs

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Intuit, HireVue Accused of AI Job Bias Against Deaf Woman

The ACLU filed complaints with state and federal agencies on behalf of a deaf, Indigenous employee of Intuit who was denied a promotion after an automated HireVue video interview. The tool did not caption all audible questions and could not accurately transcribe her speech, which the complaint says disadvantaged her because of her disability and race.

Company involved

Intuit

AI system involved

HireVue video interview

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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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AI Scammers Clone Exante Broker, Use JPMorgan Account to Defraud US Victim

Scammers used generative AI to create a fake clone of the brokerage firm Exante, including a replicated trading platform and AI-generated passports. They opened a real JPMorgan Chase bank account using a US address and tricked at least one US victim into transferring funds. Exante, which does not serve US clients, discovered the scam when the victim was registered on its real platform and reported the incident to the FBI, SEC, CFTC, and other authorities. The scammers remain unidentified, and the victim's funds have not been recovered.

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AI Hiring Platform Faces FCRA Class Action Over Data Use | Kistler et al. v. Eightfold AI Inc.

The AI platform screened job applicants, affecting their hiring prospects.

Company involved

Eightfold AI

AI system involved

Eightfold AI

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AI Lawsuit Pushes the Boundaries of AI Litigation—and May Signal a New Wave

Ranked job applicants' likelihood of success, affecting their hiring prospects.

Company involved

Eightfold AI Inc.

AI system involved

Eightfold AI Hiring Platform

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Resume prompt injection tricks AI hiring - moneywise.com

AI screening system determined which job applicants to advance to the next stage of recruitment.

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Another Legal Challenge to an AI Interviewing Tool

The system scored the employee's video interview and recommended rejection for a promotion.

Company involved

Intuit

AI system involved

HireVue

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"AI trained on child sexual abuse material?"... Musk's xAI hit with class action lawsuit

"아동 성착취물로 AI 훈련?"...머스크 xAI, 집단 소송 휘말려 - YTN

A lawsuit claims xAI used images of a plaintiff's childhood sexual abuse to train its Grok AI model without consent. The victim says AI-generated child sexual abuse material depicting them was created and spread through Grok. The suit seeks damages per violation and demands xAI block tools that generate sexual images.

Company involved

xAI

AI system involved

Grok

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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

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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.

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Goldman Sachs Apple Card Algorithm Accused of Gender Bias in Credit Limits

In late 2019, David Heinemeier Hansson alleged on Twitter that the Apple Card underwriting algorithm, operated by Goldman Sachs, gave him a higher credit limit than his wife despite similar financial profiles. The New York Department of Financial Services investigated and found no violation of fair lending laws, but critics argue the audit methodology was outdated and failed to detect proxy discrimination. Apple later updated its credit policy to allow spouses to combine credit files, acknowledging a lack of fairness in industry credit scoring.

Company involved

Goldman Sachs

AI system involved

Apple Card

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Scammers use AI-generated identities to steal $5.6 million in FTX debt claims fraud

In June 2024, a scam group posing as FTX debt claimants allegedly used AI-generated identities and manipulated facial appearances to defraud two companies of more than $5.6 million. The perpetrators accessed FTX customer data through public bankruptcy filings or a 2023 data breach at Kroll. Blockchain analysis traced the stolen funds through Binance, CoinEx, and Gate.io. The incident remains unresolved.

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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

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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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FinTech and traditional lenders discriminate against minority borrowers in mortgage pricing

A study of mortgage lending from 2012-2018 found that Latinx and African-American borrowers were charged higher interest rates than white borrowers with similar credit risk. FinTech algorithms reduced the disparity by 40% but did not eliminate it. The discrimination costs minority borrowers an estimated $765 million per year in extra interest.

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Google sues Chinese gang over AI-powered fraud targeting Americans

Google has filed a lawsuit against a Chinese cybercrime group called Outsider Enterprise, alleging it used Google's Gemini AI to create hundreds of fake websites impersonating companies and government services. The group allegedly sent millions of phishing messages to Android users, defrauding hundreds of thousands of Americans of millions of dollars. Google is coordinating with the FBI and wireless carriers to dismantle the network. The lawsuit, filed in the Southern District of New York, seeks an injunction to take down the operation.

Company involved

Outsider Enterprise

AI system involved

Gemini

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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

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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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Facebook Allowed Age-Targeted Credit Card Ads Violating Its Policy

The Markup found that four companies—Aspiration, Hometap, Chime, and Varo Bank—ran Facebook ads for credit cards and home equity loans that were targeted by age, excluding users under 25 or 35. This practice violates Facebook's own anti-discrimination policy and may violate the Equal Credit Opportunity Act and California's Unruh Civil Rights Act. Facebook did not respond to requests for comment, and some advertisers said they would review their ad targeting.

Company involved

Facebook

AI system involved

Facebook Ad Platform

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Lemonade backtracks on tweet claiming AI scans customer faces for fraud

Lemonade, an insurance firm, posted a tweet claiming it uses AI to detect non-verbal cues in customer videos to deny claims. After backlash comparing the practice to phrenology, the company deleted the tweet and denied using AI to deny claims based on facial characteristics. Lemonade stated it uses facial recognition only to flag claims submitted under different identities, which are then reviewed by human investigators.

Company involved

Lemonade

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California regulator accuses Maxpread Technologies of using AI-generated fake CEO to scam investors

Maxpread Technologies allegedly used an AI-generated avatar to pose as its CEO in a YouTube video to deceive investors. The California DFPI issued cease and desist letters to Maxpread and four other companies for offering unqualified securities and making false promises. The regulator claims the companies promised high daily returns using AI trading, but these claims were false. Maxpread did not respond to requests for comment.

Company involved

Maxpread Technologies

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