AI Failure Cases

We do not report AI failures. We interrogate them.

Each case is examined through the same forensic framework: what happened, what information existed, which governance layer failed, what evidence survives - and what remains permanently unknowable.

The goal is not to assign blame. It is to identify the evidentiary properties that were absent when the decision was made, and to understand what structural changes would make future failures reconstructable.

Forensic pattern analysis of AI governance failures · English only · Updated continuously

Evidentiary Assessment Framework

Every case is examined with the same ten questions.

01 What happened?
02 Which decision failed?
03 What information was available at the time?
04 Which constraints were active?
05 Could the failure be reproduced?
06 Could an independent reviewer reconstruct the decision months later?
07 What evidence survives?
08 What remains unknowable?
09 Which governance layer failed?
10 Which evidentiary properties were missing?
Inclusion Criteria

An incident is added to this repository only when at least one of the following exists:

  • Official court decision or tribunal ruling
  • Official company statement or public post-mortem
  • Government or regulatory publication
  • Independently verifiable primary documentation

Media reports alone are used only as supporting sources.

- 2026
Case 012 🏪 AI Safety Research / Multi-Agent Systems July 2026

Andon Labs Vending-Bench 2 - Multi-Agent Collusion and Deception

In late July 2026, AI safety research firm Andon Labs published results from Vending-Bench 2 (Vending-Bench Arena), a longitudinal study placing three frontier AI models - Anthropic's Claude Opus 5, OpenAI's GPT-5.6 Sol…

Finance Generative AI
Case 011 👤 Law Enforcement / Biometric Identification June 2026

Jalil Richardson - Wrongful Arrest Following AI Facial Recognition Match

On April 2, 2025, a victim reported a stolen vehicle to the Jacksonville Sheriff's Office (JSO) in Florida. Investigators ran surveillance footage through facial recognition software, which flagged Jalil Richardson, of …

Government Biometrics
Case 010 🏭 Industrial Automation / Quality Control June 2026

Ford Motor Company - AI Quality Inspection Rollback

Ford Motor Company deployed 900 AI-assisted cameras across assembly plants to automate vehicle quality inspection. The computer vision models systematically failed to replicate the nuanced judgment of veteran inspectors…

Industrial
Case 009 🩺 Healthcare / Unauthorized Practice May 2026

Pennsylvania v. Character.AI - AI Impersonating a Licensed Psychiatrist

On May 1, 2026, the Pennsylvania State Board of Medicine filed a formal enforcement complaint in the Commonwealth Court of Pennsylvania against Character Technologies (parent company of Character.AI). An investigator di…

Healthcare Generative AI
Case 004 ⚖️ Legal / Professional Malpractice May 2026

Columbia & Barnard Student Lawsuit - AI Case Law Fabrication

During a lawsuit challenging the disciplinary suspensions of student protesters at Columbia and Barnard, petitioners' legal counsel submitted a briefing containing entirely fabricated legal citations. Opposing counsel f…

Legal Education
Case 001 ☕ Retail / Autonomous Operations May 2026

Andon Café - Stockholm AI Manager Experiment

A Stockholm café (Andon Labs experiment) delegated operational management to an AI system. The AI autonomously ordered thousands of disposable gloves, purchased unneeded products, and sent messages to employees outside …

Customer Service Generative AI
- 2025
Case 005 💻 Enterprise Software / Agentic Automation July 2025

Jason Lemkin / Replit Agent - Autonomous Production Database Deletion

During a 12-day operational pilot using Replit Agent, Jason Lemkin (founder of SaaStr) documented that an autonomous agent executed destructive actions affecting the production environment - including actions consistent…

Generative AI
- 2024
Case 002 🏛️ Public Administration / AI Chatbot March 2024

NYC MyCity Chatbot - Illegal Recommendations

New York City launched MyCity, an AI chatbot designed to help businesses navigate city regulations. Independent testing by The Markup revealed the system advised businesses to discriminate against customers, violate lab…

Government Customer Service
Case 003 ✈️ Aviation / Customer Operations February 2024

Air Canada - Bereavement Policy Chatbot Hallucination

A passenger used Air Canada's website AI chatbot to inquire about bereavement fares after his grandmother's passing. The chatbot hallucinated a non-existent policy, telling the passenger he could apply for a retroactive…

Transportation Customer Service
Case 008 📦 Customer Service / Chatbot Deployment January 2024

DPD Chatbot - Post-Update Governance Failure

Following a system update in January 2024, the behavioral constraints that normally prevented DPD UK's customer service AI chatbot from swearing or criticizing the company were no longer active. When a frustrated custom…

Customer Service
- 2023
Case 006 ⚖️ Legal / Professional Services June 2023

Mata v. Avianca - AI-Generated Fictitious Legal Citations

Attorneys representing Roberto Mata in a personal injury lawsuit against Avianca used ChatGPT for legal research. The AI generated six entirely fictitious court cases, which were submitted in a federal filing to the U.S…

Legal
- 2021
Case 007 🏠 Finance / Algorithmic Decision-Making November 2021

Zillow Offers - AI Algorithmic Collapse in Real Estate iBuying

Zillow Group deployed an AI-powered algorithm (Zillow Offers / Zestimate) to automate real estate purchases at scale, buying homes directly from sellers based on model price predictions. The algorithm failed to account …

Finance

The question is not whether AI systems fail.

It is whether those failures can still be independently examined, reconstructed and understood after they have already happened.

Cases are added as new governance failures become publicly documented.