← All AI Failure Cases
Governance Layer

Safety & Boundary Controls

Cases where the primary or secondary governance failure involved Safety & Boundary Controls - 4 documented cases in the AI Failure Cases repository.

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 …

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…

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 …