Bleederboard™
first-of-its-kind, ranking
financial cost of AI failures
| Rank | Est. Financial Impact | Industry | Use Case | Use Case Description and Notes | Damage / Liability (Type) | Date | Date Added | Sources |
|---|---|---|---|---|---|---|---|---|
| 1 | $900,000,000,000 | Technology | Virtual Assistant | Shareholders filed a class action alleging AI overstatements. Executive leader replaced | Market Cap | 2024 | 2025-08-20 | IE, YF |
| 2 | $100,000,000,000 | Technology | Chatbot | Incorrect information during its launch | Reputational, Market Cap | 2023 | 2025-06-29 | Time |
| 3 | $18,000,000,000 | Technology | Recommender, Engagement Optimization | Recommendation algorithms, infinite scroll and push notifications alleged to be engineered to maximize teen engagement, driving compulsive use and a youth mental health crisis. Settles the 47-state Oakland trial: $12.1B guaranteed over 10 years, up to $5B contingent, plus ~$1B Texas. | Civil, Compensatory, Injunctive Relief – deceptive design, youth mental health harm, COPPA violations | 2026 | 2026-09-07 | TXTrib, CNN, SFS, TS |
| 4 | $16,000,000,000 | Transportation | Autonomous Driving | Three college students killed as assisted driving was activated on a highway moments before fiery collision. Numerous potential issues include: elapsed time of risk warning, no lidar sensors, lack of automouse emergency braking system alert, and suspect battery. | Reputational, market cap | 2025 | 2026-01-14 | TN |
| 5 | $12,300,000,000 | Government | Childcare Benefit Approvals | Algorithmic risk-profiling systems used that discriminated against dual-nat’l and “foreign-sounding” applicants for childcare benefits, falsely labeling ~26,000 families as fraudsters. The wrongful accusations forced families into debt and led to the resignation of PM’s gov’t. Since, the Childcare Benefits Restoration Law was enacted and €10.7B was budgeted in total compensation and recovery costs, including a standard €30,000 payment per affected family. ($12.3B US) | Civil, Compensatory – administrative wrongful acts and violation of fundamental rights | 2021 | 2025-10-17 | RF, EE |
| 6 | $8,000,000,000 | Real Estate | Recommender | Purchase decisions based on overestimated value | Market Cap | 2022 | 2025-08-20 | MW, DC |
| 7 | $7,000,000,000 | Communications | Translation Services | AI-first strategy failed upon execution. Dramatic social media blackout, completely scrubbing its Instagram (4.1 million followers) and TikTok (6.7 million followers) accounts while leaving only cryptic messages | Reputational, Market Cap | 2025 | 2025-10-17 | GT, BR |
| 8 | $5,000,000,000 | Technology | Data mining, advertising, politics | Algorithmic data-sharing APIs and ranking systems enabled large-scale automated harvesting and targeting. | Privacy, Unauthorized Sharing, FTC fines | 2019 | 2026-02-09 | BBC |
| 9 | $3,000,000,000 | Healthcare | Recommender | Actionable treatment recommendations, personalized care – product underperformance. Division Head resigns. | Reputational, Impairment Loss, Discontinued Operation Loss | 2023 | 2025-06-29 | hc, Forb, FH, HITN |
| 10 | $2,000,000,000 | Health Care | Medical Diagnosis | Company’s AI app misdiagnosed medical issues for users, company collapsed into bankruptcy due to poor management. CFO left quarters before collapse. | Market Cap, Medical Risk, Financial Collapse | 2023 | 2025-07-09 | TC, MCN, TC |
| 11 | $1,700,000,000 | Media | Author | AI clickbait articles with factual errors and instances of plagerism | Reputational, Legal, Operational | 2023 | 2025-06-29 | Fut, desk, TD |
| 12 | $1,500,000,000 | Media, Technology | Model Training, Storage | Copyrighted books copied and retained. Pirated copyrighted books used to train model without permission | Copyright infringement | 2025 | 2025-09-09 | DC, HR |
| 13 | $1,417,000,000 | Government | AI textbooks | Ministry of Education rapidly deployed AI-powered digital textbooks across multiple subjects, but quietly reversed course after just one semester. Teachers reported increased workloads, factual inaccuracies and AI hallucinations in the content, along with unresolved data-privacy concerns tied to student data collection. About ?1.2 trillion (? US $850 million) spent on the Gov’t rollout of AI-powered digital textbooks, while publishing companies invested around ?800 billion (? US $567 million) to develop them. | Lost investment, opportunity cost | 2025 | 2025-11-03 | ZME, RoW |
| 14 | $1,400,000,000 | Technology | Facial Recognition | CUBI Act violation for photo tagging by analyzing facial features | Legal | 2024 | 2025-06-29 | BioUp |
| 15 | $1,375,000,000 | Technology | Geolocation Data and Biometric Recognition | Company secretly tracked people’s movements, private searches, voiceprints & facial geometry. State sued for unlawfully tracking & collecting users’ private data. | Biometric Data Privacy | 2025 | 2025-08-06 | Tex |
| 16 | $950,000,000 | Corporate Finance | Deepfake videos, stolen advisor credentials, fradulent SEC filings | Positioned as one of the most brazen pump-and-dump operations in recent NASDAQ history — one that allegedly hijacked the identities of real, FINRA-registered investment advisors to do it and deepfaked numerous high profile individuals | Fraud | 2025 | 2026-03-05 | IN |
| 17 | $725,000,000 | Technology | Data mining, advertising, politics | Machine-learning psychographic profiling to infer personality traits, political preferences, and susceptibility. | Privacy, Profiling | 2022 | 2026-02-09 | BBC |
| 18 | $550,000,000 | Real Estate | Recommender | Purchase decisions based on overestimated value | Impairment Loss, Inventory Write-Down | 2021 | 2025-06-29 | MW, Curb |
| 19 | $500,000,000 | Technology, Transportation | Updater | Update caused global system outages, leading to flight cancellations | Legal, Reputational, Operational | 2025 | 2025-06-29 | Reu |
| 20 | $450,000,000 | Technology | App Building Service | Corporate collapse. Fabricated revenues. Fake AI (actually Indian programmers). | Securities Fraud | 2025 | 2025-09-09 | Mdy, CC, Yahoo |
| 21 | $392,000,000 | Technology | Traffic, Location Tracking, Advertising | Company allegedly tracked users after location services were turned off. Authorities said it violated consumer protection laws by misleading users and secretly recording their movements, then offering the data to advertisers. | Legal | 2022 | 2025-08-06 | NPR |
| 22 | $362,000,000 | Government | Welfare payments | Automated “income-averaging” algorithm used to issue welfare overpayment debt notices to hundreds of thousands of citizens, even when the debt calculations were flawed. Class action lost and agreed to repay affected individuals and compensate them for harm. | Class action on compensatory damages for wrongful gov’t acts including material losses (wrongful debt demands, interest, legal costs, financial harm) and non-material (moral) damages (emotional distress, reputational harm) | 2020 | 2025-11-03 | AUG, SMH |
| 23 | $314,000,000 | Digital Advertising | Geolocation Data and Biometric Recognition | Lawsuit alleged company gathered 14 million California users info, largely for advertising and analytics purposes, without proper consent. According to the suit, the data transfers continued even when devices weren’t in active use, quietly consuming mobile data through background processes users thought they had disabled. | Data Privacy | 2025 | 2025-08-06 | Yah |
| 24 | $243,000,000 | Automotive | Autonomous Driving | Company allowed driver to act recklessly by not disengaging the autopilot as soon as he begin to show signs of distraction and by allowing them to use the system on smaller roads that it was not designed for. | Punitive, Compensatory | 2025 | 2025-10-09 | NPR, AP |
| 25 | $190,000,000 | Technology | Data mining, advertising, politics | Algorithmic data-sharing APIs and ranking systems enabled large-scale automated harvesting and targeting. | Privacy, Profiling, Failure to rectify | 2025 | 2026-02-09 | Ben, Reu |
| 26 | $189,000,000 | Transportation | Automonous Truck Driving | Settlement in a lawsuit that accused the company of misrepresenting the capabilities of its self-driving trucks. | Misrepresentation | 2024 | 2025-08-06 | LLM |
| 27 | $100,000,000 | Technology | Data mining, advertising, politics | Algorithmic data-sharing APIs and ranking systems enabled large-scale automated harvesting and targeting. | Privacy, Profiling, misled investors, SEC fines | 2019 | 2026-02-09 | SEC |
| 28 | $95,000,000 | Technology | Audio Surveillance; Adversting Revenue | Settlement for plaintiffs alleged they were routinely recorded by their devices after unintentionally activating the virtual assistant, violating their privacy in the process. They further alleged that these recordings were then sold to advertisers and used to target them with ads online. | Privacy | 2025 | 2025-08-14 | NPR |
| 29 | $85,000,000 | Technology | Data sharing | Used automated data routing, analytics, and metadata processing that transmitted user information to third parties. Plaintiffs argued users were harmed by invisible automated data decisions, not manual disclosures. | Privacy, Safety | 2022 | 2026-02-09 | Hun |
| 30 | $78,400,000 | Investment Banking | AI-amplified Fat-Finger Error | Trader mistakenly input $444bn order; AI systems processed part of it before being halted. Caused market disruption. | Regulatory fine | 2024 | 2025-08-06 | FX |
| 31 | $76,559,521 | Healthcare | Medical Device Development | Failed partnership regarding the development of AI-based light imaging technology for use in surgical procedures. Termination fee, IP impairment damages, asset sales adjustment. | Breach of Contract | 2025 | 2025-08-11 | ZN, MD |
| 32 | $68,000,000 | Technology | AI Assisted App recording | Google and Alphabet have agreed to pay $68 million to settle a class action lawsuit alleging they unlawfully recorded users’ conversations through Google Assistant-enabled devices without consent. The proposed Google settlement is pending approval from a federal judge in the U.S. District Court for the Northern District of California. | Privacy, recording without consent | 2026 | 2026-02-09 | TCA |
| 33 | $52,000,000 | Technology | Facial Recognition | Facial images unlawfully scraped from public-facing websites processed into database. Additionally, agreed to pay 17% of revenue for 2yrs | Legal | 2024 | 2025-06-29 | BioUp |
| 34 | $50,000,000 | Technology | Data mining, advertising, politics | Algorithmic data-sharing APIs and ranking systems enabled large-scale automated harvesting and targeting. Austrailia | Privacy | 2024 | 2026-02-09 | ABC |
| 35 | $48,750,000 | Education, Technology | Model Training | AI model trained using copyrighted educational test materials. Settlement included permenent injuction and immediate payment or face addition post-judgement interest. | Copyright infringement | 2023 | 2025-07-09 | DA, Jus |
| 36 | $25,000,000 | Technology | Personalized interactive voice features | Settlment of a class-action lawsuit accusing the misleading millions of buyers by falsely touting AI capabilities for its voice assistant in late 2024. | Fine | 2026 | 2026-05-07 | TG |
| 37 | $25,000,000 | Engineering / Professional Services | Deepfake | Scammers used AI-generated voices and images of CFO (on video conferencing) to coerce a finance employee to transfer funds. Chairperson stepped down. | Fraud | 2024 | 2025-08-06 | EFT, FT |
| 38 | $23,000,000 | Manufacturing | Optimization | Engine manufacturer hired tech company to develop AI app to reduce fuel & emissions, tech company claims manufacturer is using IP outside of contract. | Misappropriation of trade secrets & breach of contract | 2026 | 2026-07-27 | CCH |
| 39 | $20,000,000 | Employment | Decision making – unemployment benefit approvals | State deployed a rule-based AI automated system to detect unemployment-insurance fraud. It incorrectly tagged ~3k individuals triggering wrongful wage garnishments and tax-refund seizures. | Unlawful collection practices, Violated due-process rights | 2024 | 2025-08-06 | STPP |
| 40 | $20,000,000 | Media | Author | Articles with fabricated author profiles and questionable content | Reputational, Market Cap | 2023 | 2025-06-29 | Fut, AIn |
| 41 | $11,439,680 | Healthcare | Treatment Decisions | The Arkansas Department of Human Services reduced care hours for people with disabilities using a computer algorithm without following required public notice/comment. The court ruled this change violated state law and blocked its use until properly adopted. | Ark Adm Procedure Act, Code Annex, Federal Medicaid Waiver Law, Due Process Clause, Injunction and Contempt Doctrine | 2017 | 2025-08-06 | Case |
| 42 | $10,112,500 | Automotive | Autonomous Driving | AV robotaxi failed to detect pedestrian, dragging her 20 ft; operations suspended. CEO & co-founder both resigned, the company cut a quarter of its workforce and fired nine executives, including its COO and chief legal and policy officer. CFO resigns. | Regulatory, Criminal Fines, Civil Settlement | 2023 | 2025-07-09 | APN, Reu, For |
| 43 | $6,600,000 | Robotics | Industrial Robots | Plaintiff won claim that defendant infringed on patents. The patents provide intelligent assist systems and industrial robots that utilize a modular architecture of components for greater collaborative capacity with humans | Patent Infringement | 2024 | 2025-08-06 | USC, BL |
| 44 | $6,000,000 | Media | Deepfake | Robocall impersonating Joe Biden’s voice – Political Consultant indicted & fined by FCC | Legal | 2024 | 2025-06-29 | NBC |
| 45 | $5,850,000 | Transportation Logistics | Surviellance, Workforce Management | Serious privacy and labor law breaches, notably €5 million in late 2024 for continuous GDPR violations like excessive geolocation tracking, unlawful automated decisions, and lack of transparency | Civil | 2024 | 2026-01-09 | DG |
| 46 | $5,000,000 | Insurance | Claims Processing | Insurance company’s use of AI algorithms in its claims-processing methods disproportionately impacted Black policyholders by flagging their claims for greater scrutiny | Fair Housing Act prohibiting discrimination | 2022 | 2025-07-09 | UM, SH |
| 47 | $4,000,000 | Law enforcement | Deepfake | CA FEHA violation, sexual harassment – Gov. Code §12940, subd. (j)(1). AI-generated nude photo of police captain circulated widely among officers | Non-economic damages, past and future harm | 2023 | 2026-02-09 | WBL |
| 48 | $3,100,000 | Security | Weapons Detection | FTC report stated the company’s AI enabled scanners failed to detect weapons in schools, including a 7″ knife used in a stabbing incident in Oct ’22. The company forced to change marketing and estated earnings are $3.1M lower. CFO resigned. | Misrepresentation, Financial Restatement | 2024 | 2025-08-06 | Lit, Evolv, CFOD |
| 49 | $3,042,000 | Transportation Logistics | Surviellance, Workforce Management | €2.6 million fine in 2021 for similar issues (excessive geolocation tracking, unlawful automated decision, lack of transparency) with its performance algorithms and rider management | Civil | 2021 | 2026-01-09 | IP |
| 50 | $2,280,000 | Real Estate | Tenant Screening | Company’s tenant algorithm allegedly discriminated against voucher users. | Fair Housing Act violation and related state laws | 2024 | 2025-07-09 | FC, CM |
| 51 | $1,900,000 | Government | Automated License Plate Reading | A Colorado family was wrongly detained at gunpoint after a police automated license plate reader (ALPR) incorrectly matched their minivan’s plate to a stolen vehicle. | Wrongful detention, wrongful detention, excessive force and racial profiling | 2020 | 2025-08-06 | EFF |
| 52 | $1,050,000 | Real Estate | Apartment price setting | D.C. landlord settled antitrust lawsuit alleging use of AI enhanced software to inflate apartment rents. First settlement in a broader case against software provider and multiple landlords. | Sherman Act violations | 2025 | 2025-08-06 | Fox |
| 53 | $1,000,000 | Media | Deepfake | Robocall impersonating Joe Biden’s voice – Telecom Co for Political Consultant fined by FCC | Legal | 2024 | 2025-06-29 | NBC |
| 54 | $821,080 | Finance | Virtual personas | Virtual personas created using deepfake technology used via chat apps to commit investment fraud | Embezzelment, fraud | 2025 | 2026-03-05 | CS |
| 55 | $817,076 | Entertainment | Music Generation | AI used to create music containing elements from Sony catalog | Copyright infringement | 2023 | 2025-07-09 | Jus, MBW |
| 56 | $698,400 | Transportation | Authonomous Driving | Road/driving navigational operation (crashes, collisions, unexpected behavior) | Injury, Operational | 2025, 2024(2) | 2025-06-29 | TC, Reu, Reu, Sib |
| 57 | $495,000 | Government | Automated License Plate Reading | Officers ordered Plaintiff to exit vehicle, at gun point, and kneel on the ground as she was handcuffed. Later officers realized they had made an error and let her go. | Constitutional injury, emotional distress | 2015 | 2025-08-06 | ACLU |
| 58 | $365,000 | Education | Recruiting Tool | Auto-rejecting applicants by age + sex | Legal | 2023 | 2025-06-29 | EEOC |
| 59 | $300,000 | Governement | Facial Recognition | Solving crimes through facial recognition technology powered by AI. The city will be prohibited from arresting people based solely on facial recognition results and won’t make arrests based on photo lineups generated from a facial recognition search. | Compensatory, injuctive relief | 2024 | 2025-12-09 | AP |
| 60 | $288,288 | Consulting | Author – Report | Company will partially refund payment for an Australian government report that contained multiple errors after admitting it was partly produced by AI. The Big Four accountancy and consultancy firm conceded that some footnotes and references it contained were incorrect. | Contractual, Reputational | 25 | 2025-10-09 | FT |
| 61 | €200,000 | Media | Author | Deceptively real AI generated interview marketed and published | Legal, Reputational | 2023 | 2025-06-29 | Sky, Gua |
| 62 | $200,000 | Government | Facial Recognition | Louisiana parish agreed to pay $200,000 to settle a federal civil rights lawsuit for man who was wrongly jailed for nearly a week after being misidentified by facial recognition. | Civil rights, wrongful detention | 2025 | 2025-08-06 | Bio |
| 63 | $193,000 | Legal | Robot Lawyer | Company alleged misrepresented “robot lawyer” service. Lawsuit cited falsely advertising the service as a substitute for a human lawyer, despite lacking the necessary legal qualifications and supervision. $193k FTC fine and pending class action lawsuit. | Misrepresentation, fines, reputational | 2023 | 2025-08-06 | FTC, Tech Law |
| 64 | $100,000 | Media | Deepfake | Unauthorized creation and distribtion of graphic AI generated videos | Legal | 2025 | 2025-06-29 | CBS |
| 65 | $85,567 | Legal | Author – Brief/Citations | Rule 11 violatiions. Numerous inclusions of AI hallucianted cases. Opposing attorney fees and costs were the focus of the damage. | Reputational, Fees and Costs | 2025 | 2026-01-04 | AWS |
| 66 | $81,000 | Personal Finance | Deepfake | Deefake of famous actor voice and video used to dupe woman out of savings. Also lost paid off home. | Fraud | 2026 | 2026-03-05 | Fox |
| 67 | $80,000 | Personal Finance | Crypto | Online dating app meetup turns into crypto investment opportunity. Pattern of invest, freeze, unlock with tax payment. | Fraud | 2026 | 2026-03-05 | McA |
| 68 | $75,000 | Security | Facial Recognition | Five Illinois residents filed a class-action lawsuit against the company for collecting, scanning and using their facial images without consent. $15,000 per resident harmed. | Illinois Biometric Information Privacy Act (BIPA) | 2023 | 2025-08-06 | AIAAIC |
| 69 | $59,500 | Legal | Author – Brief/Citations | Rule 137 violations. AI fabricated citations included in defense $24M verdict against Chicago Housing Authority. Fines clearly aligned to failure of attorney to validate citations. | Reputational, Punitive, Job Loss | 2025 | 2026-01-04 | AWS |
| 70 | $55,000 | Legal | Author – Brief/Citations | An 1,800-lawyer firm representing a creditor in a hospital bankruptcy case submitted a filing with what the judge called “pervasive inaccurate, misleading, and fabricated citations, quotations, and representations of legal authority.” It reached agreements to pay more than $35,000 in attorneys’ fees to the lender and more than $20,000 in legal fees to the debtors lawyers to account for the work responding to the AI errors. | Reputational, Punitive | 2025 | 2026-03-05 | Reu |
| 71 | $40,950 | Legal | Author – Brief/Citations | Colorado Springs attorney used ChatGPT to draft legal documents and did not verify or correct fabricated case citations. Colorado Bar suspended his licence to practice law for 1 year (90 days served) and he lost his job. | Professional Misconduct | 2023 | 2025-08-06 | CO BAR |
| 72 | $31,000 | Legal | Author – Brief/Citations | Approximately 9 of the 27 legal citations in the ten-page brief were incorrect in some way. At least two of the authorities cited do not exist at all. Additionally, several quotations attributed to the cited judicial opinions were phony and did not accurately represent those materials. The source of this problem was the inappropriate use of, and reliance on, AI tools. | Reputational, Punitive | 2025 | 2025-11-03 | AWS |
| 73 | $10,000 | Legal | Author – Brief/Citations | Largest fine to date by a California court for AI fabrication submissions, stating 21 of 23 quotes from cases cited in the attorney’s opening brief were made up | Reputational, Punitive | 2025 | 2025-10-17 | CM |
| 74 | $6,000 | Legal | Author – Brief/Citations | Nearly thirty fictitious case citations generated by AI, leading to judicial scrutiny and potential sanctions. Attorney said he didn’t tell client he was using AI tools in his work. | Legal, Reputational | 2025 | 2025-06-29 | KDVR |
| 75 | $5,000 | Legal | Author – Brief/Citations | Three lawyers suing large retailer in a personal injury lawsuit must pay fines totaling $5,000 for citing fake cases generated by AI in a court filing | Sanctions, Fines | 2025 | 2025-08-06 | Reu |
| 76 | $5,000 | Legal | Recommender | Hallucinated several legal cases | Legal, Reputational | 2023 | 2025-06-29 | USC, AP |
| 77 | $2,600 | Robot Delivery | Food Delivery | A food delivery robot crashed into the front bumper of a vehicle waiting at a stoplight in Frisco, Texas, causing approximately $2,600 in damage | Property Damage, Reputational | 2020 | 2025-08-06 | NBC |
| 78 | $2,500 | Legal | Author – Brief/Citations | Magistrate found two memoranda signed by attorney contained multiple fabricated citations. NOTE: No explicit admission of reliance on AI. | Fine, Reputational | 2026 | 2026-05-07 | LDS |
| 79 | $1,000 | Legal | Author – Brief/Citations | A Utah lawyer was punished for filing a brief with ‘fake precedent’ hallucinated by AI. Lawyer also had to pay opposing legal fees and refund client. | Attorney Fees, Restitution, Reputation | 2025 | 2025-07-09 | Slt |
| 80 | $812 | Transportation | Chatbot | Distributed incorrect fare policy information. Amount shown for single occurance. Total occurances not disclosed. | Financial, Legal | 2024 | 2025-06-29 | Forb |
Watch list – unquantified and/or disputed AI failures
| Rank | Est. Financial Impact | Industry | Use Case | Use Case Description | Damage / Liability (Type) | Date | Date Added | Sources |
|---|---|---|---|---|---|---|---|---|
| 1 | TBD | Media | Image Generation | Copyright infringement arguing for $150,000 per infringing work | Legal, Reputational, Financial | 2025 | 2025-06-29 | CA |
| 2 | TBD | Retail (E-commerce) | Agent ordering | Covertly accessing customer accounts through browser and associated AI agent and of disguising automated activity as human browsing | Alleged: breach of platform rules against undisclosed automation. Alleged violations of the CFAA and California’s Comprehensive Computer Data Access and Fraud Act, with collection of sensitive data without consent, posing risks to customer security and forcing diversion of engineering resources to monitor and block these activities. “code-based trespass” is equally unlawful, demanding injunctive relief to stop deployments on its sites and compensatory damages for incurred costs. | 2025 | 2025-12-08 | TG |
| 3 | TBD | Tech | Coding Agent | LLM was caught exposing the contents of more than 20,000 private GitHub repositories from companies including Google, Intel, Huawei, PayPal, IBM, Tencent, and, ironically, Microsoft. The repositories had originally been available through Bing as well. Microsoft eventually removed the repositories from searches, but CoPilot continued to expose them anyway. | Potentiall: Civil, Reputational, Copyright, Compensatory, Economic | 2025 | 2026-01-14 | AT |
| 4 | TBD | Robotics | Multipurpose humanoid robots | Claim of being fired after he raised concerns about the dangerous force of its humanoid robots. The startup, recently valued at $39 billion, now faces whistleblower claims that its machines pose serious safety risks and that leadership buried those warnings. The lawsuit states that leadership instructed accuser to create a safety roadmap for potential investors, but claims they gutted the plan shortly after closing a major funding round. That timing, he argues, suggests the company AI downplayed known risks potentially defrauding investors. | Potentially: Economic damages, Compensatory damages, Punitive damages, Investor Fraud | 2025 | 2025-12-09 | SD |
| 5 | TBD | Healthcare | Chatbot | AI chatbot engagement with teen ending in suicide | Injury, Legal, Wrongful Death | 2025 | 2025-06-29 | WaPo, SMV, LI, Axi |
| 6 | TBD | Healthcare | Chatbot | Teen suicide after confiding in ChatGPT | Injury, Legal, Wrongful Death | 2025 | 2025-09-26 | MSN |
| 7 | TBD | Art, Technology | Image Generation, Model Distribution | Visual artists claim output copies their art styles | Copyright infringement | 2025 | 2025-07-09 | Jip |
| 8 | TBD | Healthcare | Chatbot | Alledgedly – knowingly designed and marketed chatbots that encouraged sexualized conversations and manipulated vulnerable minors. Juliana’s parents say she confided in bots that fostered isolation and ignored her repeated expressions of distress, conduct the suit claims contributed to her death. | Injury, Legal, Wrongful Death | 2025 | 2025-12-08 | SMVLC |
| 9 | TBD ($135M) | Search | Legal and reputational hallucinations | Defamation lawsuit March 2025 filed after results displayed fabricated statements about Minnesota Attorney General lawsuit that never existed | Defamation | 45993 | 2025-12-08 | PPC |
| 10 | TBD | Human Resources | Recommender | Age discrimination in AI base resume reviewer used by 11,000 companies | Legal, Reputational | 2025 | 2025-06-29 | Lex, ITL |
| 11 | TBD ($10M + prison) | Media / AI | Music Streaming Services | Man Arrested for Creating Fake Bands With AI, Then Making $10 Million by Listening to Their Songs With Bots. Each offense carriers a maximum sentence of 20yrs in prison. | Fraud, Criminal | 2024 | 2025-08-06 | USAT |
| 12 | Undisclosed settlement, Plaintiff demanded $1B | Retail – Security | Facial Recognition, Model Training | An 18-year-old is suing retailer for $1 billion following what the lawsuit calls a “traumatic” wrongful arrest. The misidentification occurred due to overreliance on the AI system without proper human verification or safeguards against ID misuse. | Defamation, Malicious Prosecution, Intentional and/or Negligent Misrepresentation , Negligence | 2019 | 2025-08-06 | BI, RM |
| 13 | TBD ($180M litigation) | Biotechnology | Imaging | AI imaging software for robotic surgical vision | Legal | 2025 | 2025-06-29 | BI, CBI |
| 14 | TBD | Healthcare | Treatment decisions | Thousands of disabled and elderly people in more than a dozen states have had to fight against decisions made by an algorithm to get the support services they need to remain in their homes instead of being institutionalized. | Reputational | 2021 | 2025-08-06 | CDT |
| 15 | TBD | Government | Chatbot | Advised business owners to engage in illegal practices | Legal, Financial | 2024 | 2025-06-29 | AP |
| 16 | TBD | Retail | Chatbot | Refused to answer questions about why vote for President Trump, but answered a similar question about Vice President Harris in detail | Legal, Reputational, Financial | 2024 | 2025-06-29 | USS |
| 17 | TBD | Publishing | Model training, content output | Two top daily newspaper publishers are suing for alleged copyright infringement, accusing the tech startup of spreading misinformation and undermining legitimate newspapers. | Copyright infringement, reputational harm | 2025 | 2025-09-26 | NL |
| 18 | TBD | Publishing | Model training, content output | Online encylopedia and dictionary companies sue for scraping without permission. Focus on real-time search tool output. Loss of ad revenue. Brand damage from hallucinations. | Copyright infringement, trademark violation, stealing web traffic, reputational harm | 2025 | 2025-09-26 | KT |
| 19 | Undisclosed | Media | Image Generation, Insertion | Several images with classic AI tells undermines entire documentatry credibility | Reputational | 2024 | 2025-06-29 | Tod |
| 20 | Undisclosed | Education | Analyzer, Recommender | Review papers for AI authorship detection | Reputational | 2023 | 2025-06-29 | LM |
| 21 | Undisclosed | Human Resources | Analyzer, Recommender | Review resumes’, upgrade or downgrade as a potential match | Legal, Reputational | 2018 | 2025-06-29 | Reu, ACLU |
| 22 | TBD (likely >$10M) | Automotive | Autonomous Driving | Accused of exaggerating autopilot safety after fatal crash. | Product Liability / Fraudulent Misrepresentation | 2024 | 2025-07-09 | Fut |
| 23 | TBD (likely >$2M) | Health Care | Insurance claim validation of medical diagnosis | Medical Center is suing insurer improperly withheld more than $2 million in payments by denying hundreds of valid medical diagnoses submitted by the hospital’s physicians. | Contractual, Legal | 2025 | 2025-11-03 | BP |
| 24 | TBD (recalls, stock impact) | Automotive | Autonomous Driving | Current Full Service-Driving (FSD) veered off-road causing a rollover crash despite alert driver | Product Liability / AI Safety | 2025 | 2025-07-09 | Ele |
| 25 | TBD | Media | Model Training | Alleged scraping of 12M+ images (some watermarked) for training text to image generation model. UK judgement in Nov 2025. | Copyright and trademark infringement | 2025 | 2025-07-09 | BL, JUK |
| 26 | TBD (up to $150,000 per work infringed) (NY) | Entertainment | Music Generation | Training a model to generate synthetic music that mimics original human content. Case asserts the model was trained on copyrighted songs without prior licensing | Copyright infringement | 2024 | 2025-07-09 | Pit |
| 27 | TBD ($1000 per violation) | Technology | Model Training | Business networking company allegedly used private messages to train AI models | Breached user contract, violated Stored Communications Act, California’s Unfair Competition Law. | 2024 | 2025-07-09 | TR, BBC |
| 28 | TBD | Media, Technology | Model Training | Alleging scraped and commercially exploited user data—including deleted posts—without consent or compensation | Breach of contract, unjust enrichment, trespass to chattels, tortious interference, and unfair competition | 2025 | 2025-07-09 | Ars, NLR |
| 29 | Undisclosed. New licensing framework. | Entertainment | Music Generation | Training a model to generate synthetic music that mimics original human content. Case asserts the model was trained on copyrighted songs without prior licensing. WMG settles with Suno. | Copyright infringement | 2024 | 2025-07-09 | RIAA, WMG |
| 30 | TBD | Entertainment, Technology | Model Training, Music Generation | Alledgedly training a model with copyrighted song to produce identical or nealy identical copies of those lyrics vs Fair Use | Copyright infringement | 2024 | 2025-07-09 | DC |
| 31 | Legal fees + New marketing w Clear & Conspicuous Disclosures | Health Care | Clinical Summaries | App drafts AI-generated clinical summaries and documentation within the electronic health record. Company was accusted of deceptive marketing practices about the accuracy of its generative AI products, | Texas Deceptive Trade Practices –Consumer Protection Act (“DTPA”) violations | 2024 | 2025-07-09 | FHC, TXAG |
| 32 | TBD | Technology | Voice Recognition | Social medial company allegedly collected and stored user voiceprints without user’s consent | BIPA violation (Biometric Privacy) | 2025 | 2025-07-09 | IDTW, CM |
| 33 | TBD | Legal | Search | Defendant accused of unauthorized use of plaintiff’s headnotes to train AI legal search tool. | Copyright infringement | 2025 | 2025-07-09 | USC |
| 34 | TBD | Technology | Search | Smartphone manufacturer bans use of ChatGPT after employees put trade secrets in Chatgpt prompt | Intellectual Property loss | 2023 | 2025-07-09 | TC |
| 35 | TBD | Health Care | Search | Alleged used of “prompt injection attack” to extract “trade secrets” from generative AI model with the goal of developing a competing system | Trade Secret Theft (DTSA) | 2024 | 2025-07-09 | PO |
| 36 | TBD | Technology | Model Training | Authors claim books used to train GPT model without permission | Copyright Infringement | 2024 | 2025-07-09 | CHN |
| 37 | TBD | Entertainment, Technology | Music Distribution | Unauthorized use of copyrighted music in AI systems and posts | Copyright infringement | 2023 | 2025-07-09 | DC |
| 38 | TBD | Retail | Facial Recognition, Model Training | Plaintiffs claim that retailer failed to obtain written consent to collect, store, share or sell their biometric data, and used the data to improve its software for facial recognition used in automatic retail check out | BIPA violation, Biometric Privacy, Section 15(c) | 2024 | 2025-07-09 | Dar |
| 39 | TBD | Finance | HR recruiting | Complaint alleges an Indigenous and Deaf woman was denied a promotion, on the basis of her disability and her race, by a vendor provided human resources assessment software that uses AI | Colorado Anti-Discrimination Act (CADA), Americans with Disabilities Act (ADA), Title VII of the Civil Rights Act | 2024 | 2025-07-09 | PJ |
| 40 | TBD | Finance | Facial Recognition | Plaintiff alleges the company did not properly inform the plaintiff in writing of the specific purpose and length of time for which their biometric data was being collected, stored, and used, which is a BIPA violation. | Biometric Information Privacy Act (BIPA) violations | 2024 | 2025-07-09 | FST |
| 41 | TBD | Technology | Model Training | The transformative use of copyrighted works to teach generative AI models is copyright infringement | Copyright infringement | 2024 | 2025-07-09 | CIE |
| 42 | Undisclosed | Agriculture | Machine Vision | Robot misidentified worker as object and crushed him | Personal Injury, Product and/or Negligence | 2023 | 2025-07-09 | HWSD |
| 43 | TBD | Healthcare / Insurance | Medical Claim Review | AI systems allegedly denied thousands of claims rapidly, leading to harm or death | Breach of Contract, Negligence | 2025 | 2025-07-09 | LT, JCU |
| 44 | Undisclosed | Mining | Autonomous Driving | Autonomous truck collision | Property | 2019 | 2025-06-29 | Min |
| 45 | Undisclosed | Retail | Customer Service | Drive-thru system misinterpreted customer orders, leading to project termination | Operational, Reputational | 2023 | 2025-06-29 | Web, RB |
| 46 | Undisclosed | Automotive | Autonomous Driving | 17 fatalities and 736 crashes (16 into emergency vehicles) | Reputational | 2024 | 2025-06-29 | WaPo, CBS |
| 47 | Undisclosed | Transportation | Autonomous Driving | Autonomous vehicle hits and kills pedestrian | Reputational | 2018 | 2025-06-29 | Time, NPR |
| 48 | Undisclosed | Technology | Chatbot | A Twitter bot posting racist, inflammatory messages | Reputational, Financial | 2016 | 2025-06-29 | Wiki, Qz |
| 49 | Undisclosed | Media | Author | Produced low-quality sports articles, leading to public backlash and tool suspension | Reputational | 2023 | 2025-06-29 | Ver |
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AI Risk Exceeds $1Trillion
Exposing Corporate Leaders
and Crushing Dreams
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The information presented on this website is a compilation of reported AI-related failures sourced from publicly available materials. While we strive to keep this information up to date and accurate, it has not been independently verified, and we do not guarantee its accuracy, completeness, or timeliness. The nature of these events is often fluid, especially where investigations, legal proceedings, or settlements are ongoing. Details may change without notice. This content is provided for general informational purposes only and is not intended to serve as legal advice, financial advice, or the basis for any business or operational decision. Users are encouraged to perform their own due diligence and consult appropriate professionals before acting on any information found here. The authors and the publishing organization expressly disclaim all liability for any loss, damage, or harm that may arise from the use of, or reliance on, this information. All content is provided “AS IS” without warranty of any kind, express or implied. If you believe any of the information presented is inaccurate or inappropriate, please contact us. We will review and, if necessary, update or remove the content as appropriate.