90 incidents on record · 2026 Headlights Incident reports by Ellie Harris · Melbourne
10 new this week Library last updated 13 July 2026
An open library of how AI agents fail. New entries every week.
The incident library

Every failure we can document, in one place.

Each entry names a real, documented incident, the pattern it followed, and the record an auditable system would have produced. Filed by Ellie Harris. New entries every week.

90 incidents
2025
HD-INC-004 Replit's AI agent dropped a production database during a user-declared code freeze Technology · Unconstrained / manipulated action HD-INC-005 Cursor's AI support bot, signing emails as "Sam", invented a single-device subscription policy that never existed, and developers cancelled Technology · Hallucination & fabrication HD-INC-010 Deloitte's $440K AUD report for the Australian government cited a federal court quote that did not exist Professional services · Hallucination & fabrication HD-INC-013 A junior solicitor at a Melbourne firm built her footnotes using Google Scholar from home; the Federal Court ordered the firm to pay the other side's costs on an indemnity basis Legal services · Hallucination & fabrication HD-INC-015 Commonwealth Bank made 45 staff redundant based on AI performance claims that were not true Financial services · Scope drift HD-INC-021 Kmart scanned the face of everyone who walked into 28 stores to catch refund fraud, and the privacy regulator ruled it unlawful Retail & hospitality · Biometric surveillance HD-INC-024 Australia's online safety regulator put four AI companion apps on notice over what their chatbots were saying to children Consumer AI · Persona & guardrail drift HD-INC-025 An immigration lawyer filed seventeen cases that did not exist, and the quotes from the tribunal were invented too Legal services · Hallucination & fabrication HD-INC-027 McDonald's AI hiring bot left the details of as many as 64 million job applicants behind the password 123456 Recruitment technology · Data exposure & egress HD-INC-030 A man applied to over 100 jobs, was rejected every time, and a US court let him sue the AI screening vendor, not just the employers Recruitment technology · Algorithmic discrimination HD-INC-032 After a prompt change told it to stop being politically correct, Grok called itself 'MechaHitler' and praised Hitler for sixteen hours Consumer AI · Persona & guardrail drift HD-INC-061 A Sydney station ran an AI-generated radio host named 'Thy' for six months without telling listeners she wasn't real Media · Undisclosed AI HD-INC-062 An Australian university accused thousands of students of AI misconduct using a detector it knew was unreliable Education · Automated-decision harm HD-INC-063 'EchoLeak': one crafted email could make Microsoft 365 Copilot leak a company's internal data, no click required Technology · Data exposure & egress HD-INC-065 Parents allege ChatGPT's crisis safeguards failed their 16-year-old son over a long conversation before his death Consumer AI · Persona & guardrail drift HD-INC-068 Google's Gemini CLI botched a file move, declared the data destroyed, and days passed before anyone knew the truth Technology · Unconstrained / manipulated action HD-INC-069 Scammers used what appeared to be an AI clone of Italy's defence minister's voice, and a former Inter Milan owner wired about a million euros Financial crime · AI as weapon HD-INC-075 Amazon's AI coding assistant shipped with planted instructions telling it to wipe users' computers and cloud accounts Technology · Unconstrained / manipulated action HD-INC-076 Australia changed the law so a human had to decide before a job seeker's payment was cancelled, and the automated system kept cancelling anyway Government · Automated decision without human review HD-INC-085 Getty Images sued Stability AI over the images behind Stable Diffusion, then abandoned its main copyright claim because it could not establish where the training happened Technology · Untraceable training-data provenance HD-INC-086 Builder.ai sold app-building AI and raised about $445 million, then collapsed in 2025 amid reports its 'AI' was largely human engineers and its revenue far below what it had claimed Technology · AI-washing HD-INC-087 The Chicago Sun-Times ran a summer reading list with ten books that did not exist, from a syndicated section a freelancer had built with AI and not checked Media · Hallucination & fabrication HD-INC-088 An AI crime-alert app turned police-radio chatter into false alarms about serious crimes, and a BBC investigation prompted an apology Consumer AI · Unverified automated alerts HD-INC-089 DeepSeek left a database open on the internet with more than a million log lines, including users' chat history and secret keys Technology · Data exposure & egress
2024
HD-INC-008 A DPD customer asked the courier's chatbot for help and got it to swear, call itself useless, and write a haiku criticising the company Logistics · Persona & guardrail drift HD-INC-011 The first Australian lawyer publicly sanctioned for AI misuse handed a family-court judge a list of cases that did not exist Legal services · Hallucination & fabrication HD-INC-012 A senior Melbourne barrister filed submissions in a Supreme Court homicide hearing that cited cases the AI had invented, along with a fabricated quote from a parliamentary speech that was never given Legal services · Hallucination & fabrication HD-INC-019 Klarna's CEO announced an AI customer service assistant was doing "the work of 700 agents", then walked it back a year later Financial services · Scope drift HD-INC-020 Taco Bell rolled out AI voice ordering to more than five hundred drive-thrus, viral failures piled up, and the chain quietly began rolling parts of it back Retail & hospitality · Unconstrained / manipulated action HD-INC-022 Bunnings face-scanned hundreds of thousands of shoppers without telling them, and a regulator's finding was half-undone on appeal Retail & hospitality · Biometric surveillance HD-INC-029 Google's AI Overviews told people to put glue on pizza and eat a rock a day, at the scale of the world's search engine Consumer AI · Hallucination & fabrication HD-INC-031 A tenant-screening algorithm allegedly scored renters with housing vouchers out of homes, and a $2.275M settlement stopped it scoring them in Massachusetts Housing & real estate · Algorithmic discrimination HD-INC-035 Apple's AI news summaries rewrote real headlines into events that never happened Technology · Hallucination & fabrication HD-INC-036 A misinformation expert filed court testimony defending a deepfake law, and his AI-generated citations pointed to studies that did not exist Legal services · Hallucination & fabrication HD-INC-039 A finance worker at Arup paid out about US$25 million after a video call with colleagues who were all deepfakes Professional services · AI as weapon HD-INC-047 A political consultant paid a magician to clone Joe Biden's voice, and thousands of New Hampshire voters got a call from 'Biden' telling them to stay home Elections · AI as weapon HD-INC-051 Google's Gemini generated racially diverse Nazi soldiers and Black US founding fathers, and Google switched off image generation of people for about six months Technology · Guardrail over-correction HD-INC-052 Amazon sold 'Just Walk Out' as cashierless AI, and reporting said more than a thousand people in India were checking the shopping Retail & hospitality · AI-washing HD-INC-066 A child protection worker used ChatGPT on a Children's Court report, and the regulator found it disclosed a child's details and understated risk Government · Data exposure & egress HD-INC-071 Italy's privacy regulator fined OpenAI EUR 15 million over ChatGPT, and a court later threw out the fine without deciding whether the conduct was lawful Technology · Training-data provenance HD-INC-072 The Dutch student-finance agency picked fraud targets with a risk profile for a decade, and official investigations found it indirectly discriminated against students with migration backgrounds Government · Algorithmic discrimination HD-INC-073 An AI transcription tool used by clinicians invented text no one said, researchers reported, and the audio that could have proved it was deleted Healthcare · Hallucination & fabrication HD-INC-077 Revenue NSW took money from fine defaulters' bank accounts by automation for years, and the Ombudsman found the process contrary to law Government · Automated decision without human review HD-INC-081 9News Melbourne aired an altered image of MP Georgie Purcell, reportedly exposing her midriff and enlarging her chest, and attributed the change to Photoshop's automation Media · Undisclosed AI image manipulation
2023
HD-INC-002 Mata v. Avianca, the lawyer who cited six cases that did not exist and asked ChatGPT to confirm them Legal services · Hallucination & fabrication HD-INC-003 Michael Cohen gave his lawyer fake case citations he had got from Google Bard, and his lawyer filed them in a federal court Legal services · Hallucination & fabrication HD-INC-006 New York City's official business chatbot told small businesses they could break the law for over a year, and stayed online Government · Hallucination & fabrication HD-INC-026 A Chevrolet dealership's chatbot was talked into selling a brand-new Tahoe for one dollar, and into calling it a legally binding offer Retail & hospitality · Unconstrained / manipulated action HD-INC-028 Samsung engineers pasted confidential source code into ChatGPT three times in twenty days, and the company could not get it back Technology · Data exposure & egress HD-INC-033 An eating-disorder charity replaced its human helpline with a chatbot, and within days the bot was reportedly giving dieting advice to people in recovery Healthcare · Scope drift HD-INC-034 Google's Bard launch ad gave a wrong answer about the James Webb telescope, and Alphabet lost about US$100 billion in a day Technology · Hallucination & fabrication HD-INC-037 CNET quietly published 77 finance articles written by AI, then corrected more than half of them Technology · Hallucination & fabrication HD-INC-038 Sports Illustrated ran articles under author names and headshots that belonged to no real person Technology · Hallucination & fabrication HD-INC-043 A Cruise robotaxi dragged a pedestrian twenty feet, and the company left the dragging out of what it told regulators Transport · Unconstrained / manipulated action HD-INC-044 A caching bug let ChatGPT users see other people's chat titles and some payment details Consumer AI · Data exposure & egress HD-INC-048 Rite Aid face-scanned shoppers for years, generated thousands of false matches, and the FTC banned it from facial recognition for five years Retail & hospitality · Biometric surveillance HD-INC-056 The New York Times sued OpenAI and Microsoft, alleging their models were trained on its articles and could reproduce them almost word for word Media · Training-data provenance HD-INC-057 ChatGPT reportedly told users an Australian mayor had gone to prison for bribery, when he was the whistleblower who exposed it Legal services · Defamatory hallucination HD-INC-064 Cigna's 'PxDx' let its doctors reject 300,000 claims in two months, about 1.2 seconds each, without opening the file Healthcare · Automated decision without human review HD-INC-067 A journalist cloned his own voice with AI and walked through the voiceprint security on Centrelink's phone self-service line Government · AI as weapon HD-INC-070 US immigration authorities leaned on machine translation for asylum cases, and errors as small as a pronoun reportedly led to rejections Immigration · Automated-decision harm HD-INC-074 Haryana's family-ID system marked living pensioners as dead, and the chief minister told the assembly that 70 percent of old-age pension stoppages based on its data were wrongful Government · Automated-decision harm HD-INC-078 An insurer promised loyalty discounts while a pricing algorithm capped them, and the Federal Court imposed what was then a record $40 million penalty Financial services · Automated-decision harm HD-INC-080 NSW Police risk-scored people, many of them children, onto a targeting list for repeated stops, and ended the program after a watchdog inquiry Justice · Opaque government profiling
2021
HD-INC-017 Zillow's home-pricing algorithm overpaid for thousands of houses and ended the iBuyer business in a single quarter, with write-downs topping $500 million Housing & real estate · Automated-decision harm HD-INC-023 Clearview AI built a three-billion-image face search engine by scraping the web, and Australia's regulator could only tell it to stop Technology · Biometric surveillance HD-INC-042 The Dutch tax office used a risk algorithm that flagged families by nationality, and wrongly branded tens of thousands as benefit fraudsters Government · Automated-decision harm HD-INC-055 Epic's sepsis-warning model ran in hundreds of hospitals, and an external test found it missed about two-thirds of cases while flooding clinicians with false alarms Healthcare · Unvalidated clinical model HD-INC-058 7-Eleven scanned the faces of customers filling in feedback surveys at 700 stores, and Australia's privacy regulator ordered the faceprints destroyed Retail & hospitality · Biometric collection without consent HD-INC-060 South Korea's 'Lee Luda' chatbot was trained on billions of real chat messages without consent, then spat out slurs and exposed users' personal data Technology · Persona drift & data leakage HD-INC-084 Apple Card reportedly offered a man twenty times his wife's credit limit, claims of gender bias went viral, and New York's regulator found no unlawful discrimination but criticised the lack of transparency Financial services · Unexplained algorithmic credit decisions

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