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AI Incident Reports

Real-world AI incident reports

What actually happened to real organizations, from deepfake fraud to privacy fines and chatbots that ended up in court. Every report cites public sources and draws lessons for your organization.

15documented incidents

Deloitte Australia

October 2025 · Australia

HighGenerative AI

Deloitte Australia: fabricated references in a government report and a partial refund

A A$440,000 Deloitte report for an Australian department contained nonexistent references and a fabricated court quote. Deloitte agreed to a partial refund.

Partial refund of a A$440,000 contract and serious reputational damage

Air Canada

February 2024 · Canada

MediumCustomer chatbot

Air Canada: a tribunal holds the airline liable for its chatbot

Air Canada's website chatbot gave wrong bereavement-fare advice. The airline argued the bot was a "separate entity"; the tribunal disagreed.

About CA$812 in damages, interest and fees, and an important legal precedent

Arup

January 2024 · Hong Kong SAR China

CriticalDeepfake

Arup: a deepfake CFO on a video call and a $25M transfer

A finance employee at Arup's Hong Kong office made 15 transfers worth about HK$200M after a video meeting in which every other participant was a deepfake.

About HK$200M (roughly US$25M)

OpenAI

December 2024 · Italy

HighGenerative AI

Italy fines OpenAI €15 million over ChatGPT data processing

Italy's Garante found OpenAI processed personal data to train ChatGPT without an adequate legal basis, failed to notify a breach and lacked age verification.

€15M fine plus a six-month public awareness campaign

Clearview AI

September 2024 · Netherlands

HighFacial recognition

Clearview AI: €30.5M Dutch fine for its facial recognition database

The Dutch DPA fined Clearview AI €30.5M for building a biometric database from 30+ billion photos scraped from the internet.

€30.5M fine and a cease order backed by further penalties

iTutorGroup

September 2023 · United States

HighAutomated decision

iTutorGroup: hiring software that automatically rejected older applicants

The US EEOC said iTutorGroup's application software automatically rejected women 55+ and men 60+. The company paid $365,000 to settle.

$365,000 plus mandatory anti-discrimination policies and training

Alphabet (Google)

February 2023 · United States

HighGenerative AI

Google Bard: one wrong answer in a demo and $100B off market value

In Bard's launch ad the chatbot wrongly said JWST took the first exoplanet pictures. Alphabet shares fell about 7.7% in a day.

About $100B of market value lost in a day

Zillow

November 2021 · United States

CriticalAutomated decision

Zillow Offers: algorithmic home pricing, a $304M write-down and a shutdown

Zillow bought homes based on price forecasts. In Q3 2021 it overpaid, recorded a $304M inventory write-down and wound the business down.

$304.4M inventory write-down, business wind-down and ~25% workforce reduction

Our method: we only publish incidents recorded in credible public sources (court rulings, official filings, established media). The text is our own and every report links to its original sources. Spotted an error? Let us know.

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