← All AI Failure Cases
Governance Layer
Authority & Policy
Cases where the primary or secondary governance failure involved Authority & Policy - 2 documented cases in the AI Failure Cases repository.
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…
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 …