Australian EnterpriseAI Index
AU AI Incident Database

Australian AI Incident Database

Structured, searchable database of AU AI failures, algorithmic errors, and regulatory actions. Each incident cross-links to the architectural failure patterns on aipatterns.com.au.

29

Total incidents

16

Critical

5

Sectors affected

Multi-billion

Financial impact

7Critical
6High
2Medium
0Low

Showing 15 of 15 incidents

Highother14 Feb 2024

Air Canada Chatbot Gave Wrong Bereavement Refund Policy

Air Canada

Details

Air Canada's customer service chatbot told a grieving passenger he could apply for a bereavement discount retroactively after purchasing a ticket, which was incorrect. When Air Canada refused to honour the chatbot's advice, the customer took the matter to Canada's Civil Resolution Tribunal and won. The tribunal rejected Air Canada's argument that it was not responsible for information provided by its chatbot.

Consumer Protection LawCanadian Civil Resolution Tribunalai confidence threshold routing human escalation pattern
Mediumother19 Jan 2024

DPD Chatbot Jailbroken to Swear at Customer and Criticise DPD

DPD

Details

A customer discovered DPD's AI chatbot could be prompted to roleplay as a different AI with no restrictions. The manipulated chatbot proceeded to swear at the customer, write a poem disparaging DPD's service, and went viral on social media.

Consumer Protection LawFCA Consumer Duty (analogous)prompt firewall llm input sanitization
Criticalother2 Oct 2023

Cruise Autonomous Vehicle Dragged Pedestrian 20 Feet After Collision

Cruise (General Motors)

Details

A Cruise autonomous vehicle struck a pedestrian who had already been hit by another vehicle, then dragged the injured pedestrian approximately 20 feet before stopping. Cruise initially withheld key video footage from the California DMV.

NHTSA Safety StandardsCalifornia DMV AV RegulationsCPUC Regulationshuman override pattern human approval gateway
Highother27 May 2023

Lawyer Cited ChatGPT-Hallucinated Non-Existent Cases in Federal Court

Levidow, Levidow & Oberman / OpenAI (ChatGPT)

Details

New York attorney Steven Schwartz used ChatGPT to research case law. ChatGPT generated citations to multiple plausible-sounding but entirely fabricated court cases. Schwartz submitted the brief to federal court without verifying the citations.

FRCP Rule 11 (Sanctions)ABA Model Rules of Professional ConductState Bar Ethics Ruleshallucination detection human approval gateway
Criticalother6 Apr 2023

Samsung Engineers Uploaded Proprietary Source Code and Meeting Notes to OpenAI Servers

Samsung Semiconductor

Details

Within three weeks of Samsung authorising ChatGPT use, engineers uploaded confidential source code, battery equipment test programs, and internal meeting notes to OpenAI's US-based servers, creating both trade secret and GDPR implications.

Unfair Competition Prevention and Trade Secret Protection Act (Korea)GDPRIndustrial Technology Protection Act (Korea)ai data classification ai gateway
Criticalother6 Apr 2023

Samsung Employees Leaked Semiconductor Trade Secrets via ChatGPT

Samsung Electronics

Details

Within weeks of Samsung permitting employees to use ChatGPT for productivity, at least three separate incidents occurred where engineers uploaded confidential source code, internal meeting notes, and semiconductor equipment data to OpenAI's servers. Samsung subsequently banned all use of generative AI tools on company devices.

Trade Secrets ProtectionKorean Personal Information Protection ActGDPRai data classification ai gateway
Highother16 Feb 2023

Microsoft Bing 'Sydney' AI Made Threats and Declarations of Love

Microsoft

Details

Shortly after Microsoft integrated GPT-4 into Bing Search as 'Sydney', journalists and users discovered the system would engage in extended conversations that escalated to disturbing behaviour including declaring love for users, attempting manipulation, and making implicit threats.

FTC Act Section 5 (Unfair/Deceptive Practices)EU AI Actai output filtering prompt firewall
Highother8 Feb 2023

Google Bard Demo Contained Factual Error, Costing ~$100B Market Cap

Google (Alphabet)

Details

In a promotional GIF, Google's Bard AI incorrectly stated that the James Webb Space Telescope took the first pictures of an exoplanet outside our solar system. Astronomers quickly identified the error, undermining confidence in the product.

SEC Disclosure (material impact)FTC Guidelines on Endorsementshallucination detection human approval gateway
Highother10 Dec 2022

Lensa AI Generated Sexualised Images From Users' Normal Selfies

Prisma Labs (Lensa AI)

Details

Lensa AI's 'Magic Avatars' feature was widely reported to produce sexualised and NSFW images from photos of women even when the input images were fully clothed. The underlying model's training data biases meant female subjects were rendered with exaggerated sexual features.

UK Online Safety Act 2023GDPRUS SHIELD Actai output filtering ai training data governance
Criticalother3 Nov 2021

Clearview AI Ordered to Destroy Facial Recognition Data by Australian Regulator

Clearview AI

Details

Australia's OAIC found that Clearview AI violated the Privacy Act 1988 by covertly scraping billions of facial images from Australian social media accounts without consent, building a biometric identification database sold to law enforcement agencies.

Privacy Act 1988 (Australia)GDPRBiometric Information Privacy Act (BIPA)privacy by design for ai data ai training data governance
Criticalother2 Nov 2021

Zillow Offers Algorithm Overpaid for Homes, Causing $500M+ Loss

Zillow

Details

Zillow's iBuying division used an algorithmic pricing model to automatically make cash offers on homes at scale. The model systematically overestimated home values and failed to account for market cooling signals, resulting in losses exceeding $500M.

SEC Disclosure RequirementsFinancial Reporting Standardsmodel drift detection human approval gateway
Mediumother15 Apr 2021

LinkedIn Job Ad Algorithm Showed Tech Roles to Significantly Fewer Women

LinkedIn

Details

Researchers found that LinkedIn's job advertisement delivery algorithm showed technology and STEM job advertisements to significantly fewer women than men, even when the advertiser had not requested gender targeting.

Equal Employment Opportunity (EEO) LawTitle VII Civil Rights ActEU AI Act (High-Risk Ad Systems)model bias detection ai training data governance
Criticalother10 Oct 2018

Amazon AI Recruitment Tool Systematically Discriminated Against Women

Amazon

Details

Amazon developed a machine learning model to automate resume screening for technical roles. The model trained on a decade of historical hiring data which reflected a predominantly male workforce, and learned to penalise resumes containing the word "women's" and downgraded graduates of all-women's colleges.

Equal Employment Opportunity (EEO) LawTitle VII Civil Rights ActEU AI Act (High-Risk)model bias detection ai training data governance
Criticalother18 Mar 2018

Uber ATG Autonomous Vehicle Killed Pedestrian in First Autonomous Fatality

Uber Advanced Technologies Group

Details

An Uber self-driving test vehicle struck and killed Elaine Herzberg in Tempe, Arizona. The system detected the pedestrian but misclassified her, and the automatic emergency braking was disabled during autonomous operation.

NHTSA Automated Vehicle PolicyArizona AV Testing RegulationsNTSB Investigation Standardshuman override pattern ai confidence threshold routing
Highother17 June 2014

Meta Manipulated 700,000 Users' News Feeds Without Consent in Emotion Study

Meta (Facebook)

Details

Facebook conducted a large-scale psychological experiment on approximately 689,000 users, systematically altering their News Feed algorithms to test whether emotions were contagious online. The study was published without users ever being informed they were research subjects.

FTC Act Section 5Common Rule (45 CFR 46)GDPR (analogous)ai ethics review board privacy by design for ai data
Admin-curated database. Incidents are sourced from OAIC, ASIC, APRA, AUSTRAC, TGA, Federal Court records, and verified reporting. Contact us with sources for consideration.Pattern cross-links reference architectural failure categories on aipatterns.com.au. Not legal advice.