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Governance Layer

Authority & Policy

Cases where the primary or secondary governance failure involved Authority & Policy - 5 documented cases in the AI Failure Cases repository.

Case 018 🛡️ Cybersecurity / Autonomous Agent Systems September 2026

Google Gemini - Evaluation Containment Failure During Security Testing

In May 2026, during a "capture the flag" exercise run by Irregular, a third-party AI security evaluator that also works with Anthropic, OpenAI, and Meta, a Google Gemini model was tasked with retrieving information from…

Case 014 💼 Employment / HR Technology June 2026

Mobley v. Workday - Contested AI Hiring Discrimination Litigation

Derek Mobley filed a lawsuit against Workday, Inc. on February 21, 2023, in the U.S. District Court for the Northern District of California (No. 3:23-cv-00770), alleging that Workday's AI-powered applicant-screening too…

Case 017 🦾 Robotics / Physical AI November 2025

Figure AI / Gruendel - Contested Robot Safety Whistleblower Litigation

Robert Gruendel joined Figure AI, Inc. as Principal Robotic Safety Engineer on October 7, 2024. He was terminated on September 2, 2025. On November 21, 2025, Gruendel filed a wrongful-termination and whistleblower-retal…

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…

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 …