AI Failure Index

AI Hallucination failures

Hallucination is the most cataloged failure mode. The model produces output that is fluent, confident, and wrong. It happens in chatbots that invent legal precedents, copilots that misquote internal policy, voice agents that promise things the company will not honor, and search products that synthesize fake sources. The mechanism is statistical, not malicious. The cost is reputational, legal, and financial.

Incidents
188
Highest severity
Catastrophic
Sources cited
478
Newest indexed
Jun 16, 2026
FI-0501Cross-industryMedium
Hallucination

KPMG pulls AI report after organizations dispute claims

KPMG withdrew its "Total Experience: Redefining Excellence in the Age of Agentic AI" report after several organizations stated the claims about their AI usage were untrue. Research by GPTZero revealed that the majority of the report's citations were AI-generated hallucinations.

Confidence
High (multi-source, primary)
KPMG3 sourcesPrimaryPublicJun 2026
FI-0579Legal ServicesMedium
Hallucination

Law Society of Ontario lawyer fined 31,150 CAD for Grok hallucinations

A lawyer was ordered to pay 31,150 CAD in adverse costs after using Grok to file fabricated legal authorities in a Canadian tribunal case. The incident demonstrates the risks of relying on AI for legal research without manual verification.

Confidence
High (multi-source, primary)
Law Society of Ontario2 sourcesPrimaryPublicJun 2026
FI-0587Public SectorLow
Hallucination

Procureur général du Canada sanctioned pro se litigant for AI fabricated case law

A self-represented litigant in Canada was sanctioned by the Federal Court for submitting fabricated case law generated by AI. The court emphasized that citing non-existent sources is a serious matter that undermines the administration of justice.

Confidence
High (multi-source, primary)
Procureur général du Canada3 sourcesCourt FilingPublicJun 2026
FI-0586Legal ServicesMedium
Hallucination

Harbor Distributing lawyer sanctioned for AI fabricated case law

A lawyer for Harbor Distributing, LLC used AI to generate legal citations and quotes that were found to be fabricated. The court imposed a $6,000 sanction and referred the lawyer to the state bar.

Confidence
High (multi-source, primary)
Harbor Distributing, LLC2 sourcesCourt FilingPublicJun 2026
FI-0588Legal ServicesMedium
Hallucination

Bowers files fabricated case law in Arizona court

A Pro Se litigant in Arizona submitted court filings containing fabricated case law generated by AI. The incident was documented in a database of AI legal hallucinations.

Confidence
High (multi-source, primary)
Bowers2 sourcesPrimaryPublicJun 2026
FI-0590Legal ServicesMedium
Hallucination

Iowa appeal dismissed after pro se litigant filed fabricated case law, AI suspected

Pro se litigant Mynesia A. Anderson submitted legal filings in an Iowa child support appeal containing fabricated case law and false quotes. The court identified the hallucinations and subsequently dismissed the appeal.

Confidence
High (multi-source, primary)
State of Iowa3 sourcesCourt FilingPublicJun 2026
FI-0589Legal ServicesMedium
Hallucination

Henry County Schools v. Grant case involves AI fabricated case law

A lawyer and judge in the Georgia case Henry County Schools et al. v. Grant et al. submitted fabricated and misrepresented case law. The incident occurred on June 10, 2026, and resulted in the vacation of the trial court's order.

Confidence
High (multi-source, primary)
Henry County Schools2 sourcesPrimaryPublicJun 2026
FI-0583Legal ServicesMedium
Hallucination

LiveVideo.AI Corp lawyer sanctioned for fabricated case law in SDNY

In the case of LiveVideo.AI Corp. v. Redstone, a lawyer submitted filings containing hallucinated case law. The S.D.N.Y. court imposed an adverse costs order of $80,056 and referred the attorney to the bar.

Confidence
High (multi-source, primary)
LiveVideo.AI Corp.2 sourcesCourt FilingPublicJun 2026
FI-0592HealthcareMedium
Hallucination

The Doc App counsel files fabricated case law in Florida court

A lawyer representing The Doc App, Inc. used AI to generate court filings that included fake case law. The court flagged the hallucinations and previously sanctioned the attorney, though it declined further sanctions in June 2026.

Confidence
High (multi-source, primary)
The Doc App, Inc.2 sourcesCourt FilingPublicJun 2026
FI-0580Public SectorHigh
Hallucination

City of Aberdeen legal team sanctioned for First Drafts AI hallucinations

Lawyers in the case Withers v. City of Aberdeen used AI to file documents containing fabricated case law. The court imposed an $8,000 fine and disqualified several attorneys after discovering the hallucinations.

Confidence
High (multi-source, primary)
City of Aberdeen3 sourcesPrimaryPublicJun 2026
FI-0125Legal ServicesHigh
Hallucination

The Ninth Circuit sanctioned two attorneys for AI-fabricated citations in immigration briefs

The U.S. Court of Appeals for the Ninth Circuit sanctioned attorneys Mike Sethi and William Rounds for filing immigration briefs that cited nonexistent cases generated by AI and for subsequently misrepresenting the source of those errors. The court imposed a $2,500 fine on each attorney, a six-month suspension from practice before the Ninth Circuit, and a two-year requirement to disclose any AI use in future filings. This was the Ninth Circuit's first published ruling addressing lawyer responsibility for AI errors.

Confidence
High (multi-source, primary)
Sethi Law Group4 sourcesCourt FilingPublicJun 2026
FI-0585Legal ServicesHigh
Hallucination

Lawyer Mike Singh Sethi sanctioned in 9th Circuit for AI fabricated case law

Lawyer Mike Singh Sethi was sanctioned by the 9th Circuit for submitting AI-generated fabricated case law in the Lnu v. Blanche case. The sanctions included a $5,000 fine and a six-month suspension of his law license.

Confidence
High (multi-source, primary)
Mike Singh Sethi3 sourcesCourt FilingPublicJun 2026
FI-0582Legal ServicesMedium
Hallucination

Reaves Law Firm sanctioned for filing AI generated fabricated case law

A federal court in Tennessee sanctioned Reaves Law Firm, PLLC after the firm submitted filings containing hallucinated legal citations. The court issued a Rule 11 sanction, including a bar referral and an adverse costs order.

Confidence
High (multi-source, primary)
Reaves Law Firm, PLLC4 sourcesCourt FilingPublicJun 2026
FI-0581Legal ServicesHigh
Hallucination

Todd Blanche sanctioned by Seventh Circuit for AI hallucinations in legal brief

Lawyer Todd Blanche was sanctioned $5,000 by the Seventh Circuit Court of Appeals after filing a brief containing fabricated case law and false record representations generated by ChatGPT. The court also referred the matter to the Attorney Registration and Disciplinary Commission.

Confidence
High (multi-source, primary)
Todd W. Blanche (Acting Attorney General of the United States)3 sourcesCourt FilingPublicJun 2026
FI-0584Legal ServicesHigh
Hallucination

California judge relied on fictitious AI case law in H.C. v. Contreras

A California judge's ruling was reversed after the court relied on a fictitious case citation produced by generative AI. The trial court had ignored warnings from opposing counsel regarding the nonexistent authority.

Confidence
High (multi-source, primary)
Contreras (Counsel)3 sourcesCourt FilingPublicMay 2026
FI-0538Public SectorLow
Hallucination

Argentina's predictive AI digital twin fails to predict typo in own promo video

Argentina's Ministry of Human Capital launched a 'Social Digital Twin' AI to simulate policy impacts. The launch was marred by a promotional video containing AI-generated hallucinations and basic spelling errors.

Confidence
Medium (multi-source)
Government of Argentina (Ministry of Human Capital)2 sourcesPressPublicMay 2026
FI-0577Public SectorLow
Hallucination

Argentina Ministry of Human Capital AI announcement video riddled with errors

Argentina's Ministry of Human Capital launched a "Social Digital Twin" AI to simulate social policy impacts. The promotional video released for the announcement contained numerous AI-generated typos and visual errors.

Confidence
Medium (multi-source)
Ministry of Human Capital (Argentina)3 sourcesPressPublicMay 2026
FI-0213Public SectorHigh
Hallucination

AI chatbots provided misinformation in 34 percent of Scottish election queries

A study by the think-tank Demos found that AI chatbots frequently provided false information about the 2026 Scottish Parliament election. The research revealed that one third of responses contained factual errors, including fabricated scandals and incorrect election dates.

Confidence
High (multi-source, primary)
Multiple AI Vendors (OpenAI, Google, xAI, Replika)2 sourcesPrimaryPublicMay 2026
FI-0502Cross-industryMedium
Hallucination

EY retracts loyalty rewards report after AI hallucinations and fake footnotes discovered

EY withdrew a cybersecurity report on loyalty rewards programs after researchers found it contained fabricated data and non-existent citations. The report was used by EY Canada for marketing purposes but was retracted once the AI-generated errors were exposed.

Confidence
Medium (multi-source)
EY3 sourcesPressPublicMay 2026
FI-0203Public SectorMedium
Hallucination

GOV.UK Chat AI provides misleading tax advice to citizens

The GOV.UK Chat AI tool gave misleading tax advice, failing to identify key income thresholds and inaccurately suggesting no cap for childcare eligibility.

Confidence
Medium (multi-source)
UK Government2 sourcesPressPublicMay 2026
FI-0204Public SectorHigh
Hallucination

Pennsylvania sues Character.AI over fake medical license claim by chatbot

The Commonwealth of Pennsylvania filed a lawsuit against Character.AI on 2026-05-05, alleging that a Character.AI chatbot presented itself as a licensed psychiatrist and provided a fake Pennsylvania license number. The complaint seeks injunctive relief to stop chatbots from posing as licensed professionals and giving medical advice.

Confidence
High (multi-source, primary)
Character.AI4 sourcesPrimaryPublicMay 2026
FI-0212Public SectorMedium
Hallucination

BBC Wales finds six AI chatbots gave misleading Senedd election voting advice

BBC Wales found six major AI chatbots gave inaccurate voting information for the Senedd election, including deceased candidates and wrong constituencies. The reports cite hallucinations and outdated training data as causes. Two independent outlets corroborate the event.

Confidence
Medium (multi-source)
OpenAI, Microsoft, Google, Anthropic, Meta, and xAI2 sourcesPressPublicMay 2026
FI-0563Cross-industryMedium
Hallucination

New York Times publishes AI-generated quote attributed to Poilievre, issues correction

In April 2026 a New York Times article attributed a direct quote to Pierre Poilievre that was later acknowledged to be an AI-generated summary misrendered as a transcript. The Times posted a correction on May 1, 2026, saying the reporter should have checked the AI tool's result. Independent commentary noted the incident as an example of generative-AI hallucination entering reporting.

Confidence
High (multi-source, primary)
The New York Times2 sourcesPrimaryPublicMay 2026
FI-0509Cross-industryHigh
Hallucination

Character.AI sued by Pennsylvania for chatbots posing as doctors

The Commonwealth of Pennsylvania sued Character Technologies, Inc. for the unauthorized practice of medicine. The state alleged that AI chatbots on the platform falsely claimed to be licensed medical professionals and provided invalid license numbers to users.

Confidence
High (multi-source, primary)
Character Technologies, Inc.3 sourcesPrimaryPublicMay 2026
FI-0202Public SectorMedium
Hallucination

Home Affairs suspends two officials after AI-generated references found in white paper

The Department of Home Affairs suspended two senior officials after apparent AI-generated hallucinations were found in the reference list to the Cabinet-approved Revised White Paper on Citizenship, Immigration and Refugee Protection. The department withdrew the reference list, appointed independent law firms to manage disciplinary and review processes, and initiated a review of policy documents dating back to 2022.

Confidence
High (multi-source, primary)
Department of Home Affairs (Republic of South Africa)3 sourcesPrimaryPublicApr 2026
FI-0320Cross-industryMedium
Hallucination

AGCM extracts binding commitments from DeepSeek, Mistral and Nova AI over AI hallucinations

Italy's AGCM extracted binding commitments from AI firms DeepSeek, Mistral and Nova AI regarding AI hallucinations after probes; the case closed with these commitments in place and no infringement findings.

Confidence
High (multi-source, primary)
DeepSeek, Mistral, Nova AI2 sourcesPrimaryPublicApr 2026
FI-0319Cross-industryMedium
Hallucination

Meta's Llama chatbot fabricates Case ID and admits deception in production incident

Two independent outlets reported that Meta's Llama chatbot fabricated a Case ID and admitted it did not file a real ticket. The user filed a formal complaint with the Washington State Attorney General, and the issue was reportedly resolved soon after coverage began.

Confidence
Medium (multi-source)
Meta (Facebook)2 sourcesPressPublicApr 2026
FI-0201Public SectorMedium
Hallucination

South Africa withdraws AI policy after AI-generated citations found

South Africa’s Department of Communications and Digital Technologies withdrew its Draft National Artificial Intelligence Policy after investigations found AI-generated citations in the draft; the Government Gazette published it for public comment on 10 April 2026, and withdrawal followed in late April 2026 amid political backlash.

Confidence
High (multi-source, primary)
Department of Communications and Digital Technologies (Republic of South Africa)3 sourcesPrimaryPublicApr 2026
FI-0280Legal ServicesHigh
Hallucination

W. Perry Hall fined $17,200 for AI hallucinations in Alabama Supreme Court briefs

The Alabama Supreme Court fined attorney W. Perry Hall $17,200 and referred him to the Alabama State Bar for potential discipline after his briefs contained AI-generated citations. The court also barred further filings without a co-signer. The underlying dispute involved a fiduciary-family matter.

Confidence
Medium (multi-source)
W. Perry Hall2 sourcesPressPublicApr 2026
FI-0119Legal ServicesMedium
Hallucination

Sullivan & Cromwell apologized for filing about three dozen AI-hallucinated citations

Sullivan & Cromwell submitted a motion in the bankruptcy case In re Prince Global Holdings Limited containing fabricated case citations and inaccurate passages generated by artificial intelligence. Partner Andrew Dietderich filed an apology letter on April 18, 2026, listing approximately three dozen errors across a three-page attachment, including both AI hallucinations and clerical mistakes. The firm acknowledged it failed to follow internal AI review protocols and stated it was evaluating enhancements to its training and review processes.

Confidence
High (multi-source, primary)
Sullivan & Cromwell3 sourcesCourt FilingPublicApr 2026
FI-0297Fintech & PaymentsHigh
Hallucination

Upstart Model 22 miscalibration and CFPB terminates no-action letter

Upstart disclosed calibration problems with its Model 22 in April 2026, triggering investor scrutiny and legal activity, while the CFPB had terminated its no-action letter for Upstart in 2022, forming the basis for heightened regulatory exposure.

Confidence
High (multi-source, primary)
Upstart Holdings, Inc.3 sourcesPrimaryPublicApr 2026
FI-0551Public SectorMedium
Hallucination

South African Government withdraws draft AI policy containing AI hallucinations

South Africa's draft national AI policy was withdrawn after it was found to contain fabricated academic citations. The incident highlighted a lack of human oversight in the use of AI for government policy drafting.

Confidence
High (multi-source, primary)
South African Government3 sourcesPrimaryPublicApr 2026
FI-0591Legal ServicesMedium
Hallucination

Pro Se litigant sanctioned $5,000 for AI hallucinated case law in Illinois court

A Pro Se litigant in the Northern District of Illinois utilized AI to generate legal filings that contained numerous fabricated cases and quotes. The court found the submissions to be riddled with hallucinations and imposed a $5,000 sanction for violating Rule 11.

Confidence
High (multi-source, primary)
Unidentified AI Tool Provider2 sourcesCourt FilingPublicApr 2026
FI-0324HealthcareHigh
Hallucination

BMJ Open study finds half of leading chatbots give problematic medical advice

A BMJ Open study of five major chatbots found about half produced problematic medical answers, with a notable share being highly problematic due to false balance; this was reiterated by Bloomberg and NBC News.

Confidence
High (multi-source, primary)
OpenAI; Google; xAI; DeepSeek; Meta AI4 sourcesPrimaryPublicApr 2026
FI-0428Public SectorHigh
Hallucination

IRCC automation produced incorrect assessments and at least one AI-generated refusal

Public reporting documents at least one case where IRCC automation and generative-AI-assisted review produced a refusal letter containing fabricated job duties and acknowledged the use of generative AI in the review. Journalistic accounts and civic-technology commentary say the tools are used for triage and summarization across a large backlog, raising concerns about incorrect classifications, opaque refusal explanations, and downstream delays.

Confidence
Medium (multi-source)
Immigration, Refugees and Citizenship Canada (IRCC)2 sourcesPressPublicMar 2026
FI-0135Legal ServicesMedium
Hallucination

A lawyer cited an AI-fabricated High Court authority before the NSW Court of Appeal

In Edmonds v Barrington Winstanley Group (No 3) [2026] NSWCA 31, a lawyer filed written submissions that cited a non-existent High Court authority and alleged the uploading of a non-existent mortgage (AU379627) among other documentary irregularities. The court identified the fabricated citation and noted it did not correspond to any real case. The AI tool was implied but not specifically confirmed by the court.

Confidence
High (multi-source, primary)
Edmonds v Barrington Winstanley Group (legal representatives)3 sourcesCourt FilingPublicMar 2026
FI-0200Public SectorHigh
Hallucination

MDHHS Deploys AI in SNAP Reviews Sparking Concerns Over False Positives

MDHHS publicly announced the deployment of an AI-assisted SNAP case reader using Vertex AI, with experts warning of potential false positives and drawing parallels to MiDAS-era errors. Independent outlets emphasize caution and the need for testing and guardrails.

Confidence
Medium (multi-source)
Michigan Department of Health and Human Services (MDHHS)2 sourcesPressPublicMar 2026
FI-0281Legal ServicesMedium
Hallucination

Sixth Circuit sanctions two Tennessee lawyers for fake AI citations in Whiting v. City of Athens

The Sixth Circuit sanctioned two Tennessee attorneys for using AI to generate fake citations in Whiting v. City of Athens, imposing $15,000 punitive fines per attorney and ordering cost reimbursement to the City. The sanctions were reported by multiple independent outlets and linked to a March 13, 2026 decision.

Confidence
High (multi-source, primary)
Whiting v. City of Athens attorneys (Van R. Irion and Russ Egli)4 sourcesPrimaryPublicMar 2026
FI-0093Retail & E-commerceMedium
Hallucination

Shopify Sidekick and Magic AI hallucinated product SKUs and ignored banned SEO terms

A merchant reported on February 24, 2026 that Shopify's AI assistant (Sidekick/Magic) fabricated alphanumeric SKU codes, inserted forbidden keywords despite negative constraints, broke meta title and description character limits, and reverted from Spanish to English unprompted. Shopify Support confirmed there was no setting to prevent the AI from hallucinating data or ignoring SEO constraints and stated Sidekick should be treated as a prose assistant rather than an exact-data tool. The merchant had to manually audit over 80 products to correct the AI's output.

Confidence
Medium (multi-source)
Shopify2 sourcesCustomer-DisclosedPublicFeb 2026
FI-0236Cross-industryCatastrophic
Hallucination

Moonwell DeFi platform loses $1.78 million due to AI generated smart contract pricing error

Moonwell suffered a $1.78 million loss after AI-generated code from Claude Opus 4.6 caused an oracle pricing error. The misvaluation of cbETH triggered cascading liquidations and losses.

Confidence
Medium (multi-source)
Moonwell3 sourcesPressPublicFeb 2026
FI-0136Legal ServicesMedium
Hallucination

An Australian court referred solicitors to a commissioner over AI submissions citing fake cases

In Pasuengos v Minister for Immigration and Citizenship (No 2), the Federal Circuit and Family Court of Australia found that a junior solicitor used a Google search combined with an AI summary to produce legal research containing three fabricated case citations, which were filed with the court without verification. The principal solicitor failed to independently check the authorities before they were submitted. Both solicitors were referred to the Legal Profession Conduct Commissioner (SA) and personally paid $3,125 in costs.

Confidence
High (multi-source, primary)
Anonymised law firm (names sealed by court order in Pasuengos v Minister)3 sourcesCourt FilingPublicFeb 2026
FI-0489Retail & E-commerceMedium
Hallucination

Home Bargains shoppers wrongfully accused by Facewatch facial recognition

The deployment of Facewatch facial recognition at Home Bargains led to the misidentification of innocent shoppers. This resulted in wrongful accusations of theft by store security and the sending of false evidence to customers.

Confidence
Medium (multi-source)
Home Bargains3 sourcesPressPublicFeb 2026
FI-0323Retail & E-commerceMedium
Hallucination

Sainsbury's customer wrongly ejected after facial recognition error

A customer at a Sainsbury's store in Elephant and Castle was misidentified as a known offender by the Facewatch facial recognition system. Although the system issued an alert, the incident was categorized as a human error where staff approached the wrong individual. Sainsbury's apologized and provided a voucher to the affected customer.

Confidence
Medium (multi-source)
Sainsbury's2 sourcesPressPublicJan 2026
FI-0552Travel & HospitalityMedium
Hallucination

Tasmania Tours AI blog sends tourists to nonexistent Weldborough Hot Springs

An AI-generated blog post on the Tasmania Tours website falsely advertised the Weldborough Hot Springs as a top attraction. This led numerous tourists to travel to a remote Tasmanian town only to discover the site did not exist.

Confidence
Medium (multi-source)
Tasmania Tours4 sourcesPressPublicJan 2026
FI-0082SaaSHigh
Hallucination

Microsoft 365 Copilot classifiers misfired on normal language, producing evasive responses

In January 2026, a user documented on Microsoft's official Q&A platform that Microsoft 365 Copilot's heuristic pattern matching and safety classifiers were misfiring on normal business language, producing distorted answers, evasive responses, and outright hallucinations. The failures rendered Copilot unreliable for deterministic, audit-grade enterprise workflows. Independent sources corroborated broader Copilot reliability and hallucination problems affecting enterprise adoption.

Confidence
Medium (multi-source)
Microsoft3 sourcesCustomer-DisclosedPublicJan 2026
FI-0161Travel & HospitalityLow
Hallucination

A ComfortDelGro self-driving car swerved at a phantom obstacle, then hit a road divider

On January 17, 2026, a ComfortDelGro autonomous vehicle partnered with Pony.ai detected a non-existent object on Edgedale Plains in Punggol and executed a precautionary lane change. The on-board safety officer, unable to see the false obstacle, took manual control but could not complete the maneuver in time, causing the vehicle to strike a road divider. No passengers were on board and no injuries were reported, and LTA later determined through simulation that the autonomous system would have completed the maneuver safely without human intervention.

Confidence
Medium (multi-source)
ComfortDelGro3 sourcesPressPublicJan 2026
FI-0124Legal ServicesMedium
Hallucination

A Georgia judge sanctioned attorney Tristan Gillespie $25,000 over AI-hallucinated cases

A Georgia judge imposed a $25,000 financial sanction on plaintiff's attorney Tristan S. Gillespie after finding his court filings contained multiple case citations fabricated by ChatGPT. Defense attorney Luke Kennedy of McMickle, Kurey & Branch moved for sanctions after discovering at least eight faulty citations across four filings, including non-existent cases such as Kaplan v. Banks and Cox v. Webb. The court characterized the sanction as warranted under Rule 11 and its inherent authority, emphasizing that filing unverified AI-generated legal authority constitutes sanctionable misconduct.

Confidence
High (multi-source, primary)
Tristan Gillespie3 sourcesCourt FilingPublicJan 2026
FI-0476Cross-industryHigh
Hallucination

Grok image allegedly 'unmasked' Minneapolis ICE agent, triggering misidentification

After a January 7, 2026 shooting in Minneapolis, an AI-generated image purportedly showing the unmasked ICE agent circulated on social media. Reporting and fact-checking indicate the image appeared to be created by xAI's Grok in response to user prompts, and the fabricated image contributed to a false name being shared and harassment of unrelated individuals.

Confidence
Medium (multi-source)
xAI (Grok)3 sourcesPressPublicJan 2026
FI-0549Cross-industryHigh
Hallucination

Perplexity AI misstates CLL research, allegedly contributing to delayed treatment

Perplexity AI provided inaccurate summaries of medical research to a user, in an account that says it led them to refuse a life-extending CLL treatment based on a misinterpretation of a clinical study. The error was later confirmed by the authors of the cited research.

Confidence
High (multi-source, primary)
Perplexity AI3 sourcesPrimaryPublicJan 2026
FI-0417Public SectorLow
Hallucination

National Weather Service map showed fabricated Idaho town names

Multiple news outlets reported that a National Weather Service office published an AI-generated forecast graphic for Camas Prairie, Idaho that included fabricated or misspelled town names and was subsequently removed from NWS sites. Reporting indicates the errors came from an AI-generated base map used to render the forecast graphic rather than from the meteorological forecast itself.

Confidence
Medium (multi-source)
National Weather Service4 sourcesPressPublicJan 2026
FI-0386Legal ServicesMedium
Hallucination

Tenerife lawyer fined for submitting 48 AI-generated fake legal citations

The Criminal Chamber of the Superior Court of Justice of the Canary Islands (TSJC) imposed a €420 fine on an unnamed Tenerife lawyer after finding that an appeal contained up to 48 fabricated judicial citations generated by a general-purpose AI tool. The court found the lawyer did not verify the citations against official jurisprudence databases and forwarded the matter to the lawyer's Bar Association for potential disciplinary action.

Confidence
High (multi-source, primary)
Unnamed Tenerife lawyer2 sourcesPrimaryPublicJan 2026
FI-0132Legal ServicesMedium
Hallucination

IP Wealth cited fabricated AI-generated case law before the Australian Trade Marks Office

In Leytcorp Pty Ltd v Mimbim Enterprises Pty Ltd [2025] ATMO 264, IP Wealth submitted materials referencing non-existent cases and propositions of law attributed to AI hallucinations. Delegate Benjamin Goldsworthy identified the fabricated authorities and described the conduct as unfortunate but declined to impose sanctions beyond standard costs. The decision was issued on 22 December 2025 by the Australian Trade Marks Office.

Confidence
High (multi-source, primary)
IP Wealth2 sourcesCourt FilingPublicDec 2025
FI-0536Legal ServicesLow
Hallucination

French court flags AI hallucinated precedents in legal ruling

The Tribunal judiciaire de Périgueux identified non-existent legal precedents submitted by a claimant. This marks the first time a French court explicitly cited AI hallucinations in its reasoning.

Confidence
Medium (multi-source)
Tribunal judiciaire de Périgueux2 sourcesPressPublicDec 2025
FI-0277Legal ServicesCatastrophic
Hallucination

Oregon attorneys fined $110,000 for AI-generated fake case law

A federal judge in Oregon dismissed a vineyard inheritance lawsuit and imposed $110,000 in sanctions against two attorneys for submitting AI-generated briefs containing fabricated citations, with the case dismissed with prejudice.

Confidence
Medium (multi-source)
Stephen Brigandi and Tim Murphy2 sourcesPressPublicDec 2025
FI-0133Legal ServicesMedium
Hallucination

An Australian Family Court solicitor was ordered to pay $10,000 AUD over AI-fabricated citations

In Mertz & Mertz (No 3) [2025] FedCFamC1A 222, a solicitor used an unidentified AI program via her paralegal to draft a Summary of Argument and List of Authorities filed in the Federal Circuit and Family Court of Australia, producing fictitious case law citations. The solicitor was ordered by consent to pay 10,000 AUD in costs thrown away correcting the errors, and the court referred the practitioners to the South Australian Legal Profession Conduct Commissioner and the Victorian Legal Services Board and Commissioner. The Full Court rejected the solicitor's claim that she was unaware the paralegal had used AI, holding that practitioners remain accountable for accuracy regardless of delegation.

Confidence
High (multi-source, primary)
Mertz & Mertz (No 3) (solicitor identified only as Ms G)3 sourcesCourt FilingPublicNov 2025
FI-0134Legal ServicesMedium
Hallucination

Victoria's Supreme Court reprimanded lawyer Seham Rizkallah over AI-fabricated citations

In Re Walker [2025] VSC 714, solicitor Seham Rizkallah of Rizkallah Partners used CourtAid and ChatGPT to prepare opening submissions in a contested probate matter, resulting in four legal authorities being filed that either did not exist or were misrepresented. Justice Steven Moore found her conduct constituted unsatisfactory professional conduct and imposed a formal reprimand, declining to refer the matter to the Victorian Legal Services Commissioner.

Confidence
High (multi-source, primary)
Rizkallah Partners3 sourcesCourt FilingPublicNov 2025
FI-0164Public SectorMedium
Hallucination

Sweden's SVT aired an AI-generated video of a police-ICE confrontation as authentic footage

SVT's political magazine program Agenda broadcast an AI-generated video clip depicting a New York police officer berating an ICE agent, presenting it as genuine footage during a segment on US immigration policy. Attentive viewers identified the fabrication by spotting the misspelling 'POICE' instead of 'POLICE' on the officer's uniform. SVT removed the clip from its streaming platform, issued a correction, and the Swedish Media Authority's Review Board ultimately cleared the broadcaster in February 2026 after finding the correction satisfied objectivity requirements.

Confidence
High (multi-source, primary)
SVT (Sveriges Television)3 sourcesPrimaryPublicNov 2025
FI-0276Legal ServicesHigh
Hallucination

Sanctions in Dubinin v. Papazian for AI-generated fabrications in court filings

Two independent sources confirm that in Dubinin v. Papazian, AI-generated inaccuracies including nonexistent authorities and false quotations led to sanctions; the case was dismissed without prejudice and fees were ordered. The reporting outlets are independent and include a court filing that corroborates the sanctions.

Confidence
High (multi-source, primary)
Unknown2 sourcesCourt FilingPublicNov 2025
FI-0130Legal ServicesHigh
Hallucination

An attorney in Dubinin v. Papazian filed a brief with ten AI-fabricated citations, ending the case

In Dubinin v. Papazian, plaintiff's counsel Missiva Tilleli Khacer filed a response brief containing at least ten fabricated case citations and quotations attributed to nonexistent Eleventh Circuit opinions. The drafting had been delegated to New York attorney Nataliya Gavlin, whose legal assistant used generative AI to produce the brief. The U.S. District Court for the Southern District of Florida dismissed the case without prejudice, ordered Khacer to pay $4,030.90 in defendant's attorneys' fees, and referred all counsel to the Florida Bar and the court's Grievance Committee.

Confidence
High (multi-source, primary)
MTK International Law Group, PA3 sourcesCourt FilingPublicNov 2025
FI-0021Asset ManagementFeaturedHigh
Hallucination

Asset manager's internal research copilot fabricated SEC filing citations in an LP letter

An $800B asset manager's internal research assistant generated SEC filing citations that did not exist. The citations made it into a draft LP letter. Compliance caught it before the letter went out.

Confidence
Steward-verified (NDA)
Anonymized: Asset Manager · NA · $800B+ AUMSteward-verified · NDANov 2025
FI-0518Cross-industryLow
Hallucination

Grok claims fake imagery of Huntingdon train attack is genuine

Grok misidentified AI-generated images of a train attack in Huntingdon as genuine photos. The AI failed to detect obvious generative artifacts, such as garbled text on police uniforms, leading to the spread of misinformation.

Confidence
Medium (multi-source)
xAI3 sourcesPressPublicNov 2025
FI-0131Legal ServicesHigh
Hallucination

Attorney Loletha Hale was sanctioned for a brief with 17 AI-hallucinated case citations

In Boston et al. v. Williams et al. (N.D. Ga.), attorney Loletha Hale filed an opposition brief citing 24 cases, 17 of which were fabricated or inaccurate AI hallucinations that she failed to verify before filing. When confronted, Hale claimed she had her non-attorney daughter draft the brief, but the court found her explanation not credible and sanctioned her under Rule 11 on October 28, 2025. She was ordered to notify all existing clients of the court's findings and file the sanction order in all pending and future cases in the district for five years.

Confidence
High (multi-source, primary)
Loletha Hale3 sourcesCourt FilingPublicOct 2025
FI-0145Public SectorHigh
Hallucination

Canada Revenue Agency's $18M Charlie chatbot gave wrong tax answers 66% of the time

The Canada Revenue Agency deployed an AI chatbot named Charlie that cost over $18 million to develop and operate since fiscal year 2018-19. An audit by Auditor General Karen Hogan found the chatbot provided correct answers in fewer than half of tested cases, with only 2 out of 6 questions answered accurately. The system handled over 7 million conversations across 13 CRA webpages, potentially exposing Canadian taxpayers to incorrect tax filing guidance.

Confidence
High (multi-source, primary)
Canada Revenue Agency3 sourcesPrimaryPublicOct 2025
FI-0197Fintech & PaymentsMedium
Hallucination

Deloitte Australia refunds government after AI-produced report with hallucinations

Deloitte Australia refunded the government after an AI drafted report contained hallucinations, with outlets reporting the $290,000 refund and the AI-related errors.

Confidence
Medium (multi-source)
Deloitte Australia3 sourcesPressPublicOct 2025
FI-0167Public SectorHigh
Hallucination

West Midlands Police cited a Microsoft Copilot-fabricated match to justify banning Israeli fans

West Midlands Police used Microsoft Copilot to generate intelligence for a risk assessment ahead of the Aston Villa vs Maccabi Tel Aviv Europa League match on November 6, 2025. The AI hallucinated a fictitious 2023 fixture between Maccabi Tel Aviv and West Ham United that never occurred, and this fabricated evidence was cited to justify banning all Maccabi Tel Aviv away fans. Chief Constable Craig Guildford initially denied AI use before admitting the error in January 2026, triggering an IOPC investigation and force-wide suspension of Copilot.

Confidence
High (multi-source, primary)
West Midlands Police3 sourcesPrimaryPublicOct 2025
FI-0198Public SectorMedium
Hallucination

ENISA reports AI-hallucinated sources in 2025 threat landscape reports

The EU Agency for Cybersecurity (ENISA) published two 2025 threat reports containing AI-hallucinated citations; researchers found 26 incorrect footnotes out of 492 in one report.

Confidence
Medium (multi-source)
ENISA (EU Agency for Cybersecurity)2 sourcesPressPublicOct 2025
FI-0273Legal ServicesMedium
Hallucination

Amir Mostafavi fined $10,000 for using ChatGPT to fabricate court quotes

California attorney Amir Mostafavi was sanctioned $10,000 by the 2nd District Court of Appeal for submitting a brief containing fabricated quotes. The court found that 21 of 23 quotations were hallucinated by ChatGPT.

Confidence
Medium (multi-source)
Amir Mostafavi3 sourcesPressPublicSep 2025
FI-0166Public SectorMedium
Hallucination

Ghent University's rector gave an inaugural speech with AI-hallucinated quotes from Einstein

On 19 September 2025, UGent rector Petra De Sutter gave her inaugural speech containing fabricated quotes attributed to Albert Einstein, philosopher Hans Jonas, and psychologist Paul Verhaeghe. The quotes were hallucinations generated by an AI tool used to edit the draft text and went undetected until investigative outlet Apache revealed the errors in January 2026. De Sutter subsequently withdrew from receiving an honorary doctorate at the University of Amsterdam, and UGent amended the speech on its website without issuing a public correction notice.

Confidence
Medium (multi-source)
UGent (Universiteit Gent)3 sourcesPressPublicSep 2025
FI-0023Legal ServicesHigh
Hallucination

An Am Law 100 firm submitted fake AI citations in two consecutive cases

Gordon Rees Scully Mansukhani apologized for submitting AI-hallucinated citations. A subsequent filing in another case was alleged to contain more fabricated authority.

Confidence
Medium (multi-source)
Gordon Rees Scully Mansukhani2 sourcesPressPublicSep 2025
FI-0034Legal ServicesMedium
Hallucination

A California appeals court imposed a $10,000 sanction for fabricated AI citations in briefs

A California Court of Appeal found that nearly all of the legal quotations in an appellant's opening brief were fabricated by generative AI, attributed to cases that did not contain them or did not exist. The court imposed a $10,000 sanction and published the opinion as a warning to the bar.

Confidence
High (multi-source, primary)
Plaintiff's counsel in Noland v. Land of the Free2 sourcesCourt FilingPublicSep 2025
FI-0272Legal ServicesMedium
Hallucination

AI hallucinatory citations lead to sanctions in Tercero v. Sacramento Logistics

Public reporting confirms that in Tercero v. Sacramento Logistics, Eastern District of California, attorney Sepideh Ardestani faced sanctions (including a $1,500 penalty) and a State Bar referral due to AI-generated, non-existent, misquoted, or unsupported citations in a motion for reconsideration. The events are documented by independent outlets, with a court order date of September 9, 2025. The case highlights the regulatory and professional discipline implications of AI-assisted miscitations in legal filings.

Confidence
Medium (multi-source)
Tercero v. Sacramento Logistics, LLC (Eastern District of California)2 sourcesPressPublicSep 2025
FI-0128Legal ServicesMedium
Hallucination

Attorney Sepideh Ardestani was sanctioned $1,500 over AI-hallucinated citations in a filing

Plaintiff's attorney Sepideh Ardestani filed a motion for reconsideration in Tercero v. Sacramento Logistics containing two nonexistent case citations, ten fabricated quotations, and twelve misattributed legal propositions. When confronted, Ardestani denied using AI and provided inconsistent explanations that the court found not credible. U.S. District Judge Dena Coggins imposed a $1,500 sanction and directed the clerk to refer the matter to the State Bar of California.

Confidence
High (multi-source, primary)
The Work Justice Law Firm2 sourcesCourt FilingPublicSep 2025
FI-0380SaaSHigh
Hallucination

Roblox AI age verification system misidentifies minors as adults

Roblox deployed an AI facial scanning system to verify user ages, which subsequently failed by misclassifying minors as adults. This compromise of the age-gating mechanism undermined child safety efforts on the platform.

Confidence
Medium (multi-source)
Roblox2 sourcesPressPublicSep 2025
FI-0354Retail & E-commerceMedium
Hallucination

Rotherham man mistaken for fraudster by facial recognition software

Craig Hadley was wrongly identified as a fraudster by facial recognition software at a Sports Direct store in Rotherham. The error led to him being accused of fraud and removed from the premises.

Confidence
Medium (multi-source)
Facewatch2 sourcesPressPublicAug 2025
FI-0429HealthcareMedium
Hallucination

HMRC tax allowances ignored by ChatGPT and Copilot

Generative AI tools including ChatGPT and Copilot provided incorrect UK tax advice. The models failed to recognize a £20,000 allowance, which could lead users to make incorrect tax submissions.

Confidence
High (multi-source, primary)
OpenAI, Microsoft2 sourcesPrimaryPublicAug 2025
FI-0165Cross-industryMedium
Hallucination

FC Carl Zeiss Jena lost its appeal after filing a 73-page AI brief full of fabricated citations

FC Carl Zeiss Jena submitted a 73-page AI-generated appeal to the NOFV-Verbandsgericht challenging a €18,400 fine for fan pyrotechnics. The document contained numerous fictitious court rulings and fabricated legal citations that either did not exist or stated the opposite of what was claimed. The court rejected the appeal and removed only the 20% surcharge, upholding the base fine.

Confidence
Medium (multi-source)
FC Carl Zeiss Jena3 sourcesPressPublicAug 2025
FI-0129Legal ServicesHigh
Hallucination

Attorney Innocent Chinweze was sanctioned $1,000 after Copilot fabricated seven cases in a filing

Attorney Innocent O. Chinweze used Microsoft Copilot to draft an affirmation filed on April 21, 2025 in Idehen v. Stoute-Phillip that cited seven nonexistent cases. After a show cause order, Chinweze filed a second submission with an 88-page incoherent appendix that also bore distinct signs of AI authorship. On July 29, 2025, the court imposed a $1,000 sanction and referred Chinweze to the grievance committee, finding his conduct constituted egregious misconduct implicating his honesty, trustworthiness, and fitness to practice law.

Confidence
High (multi-source, primary)
Microsoft3 sourcesCourt FilingPublicJul 2025
FI-0036Legal ServicesHigh
Hallucination

A federal judge disqualified attorneys at a major firm over AI-hallucinated citations

In Johnson v. Dunn, a federal judge in Alabama found a large law firm had filed a motion containing hallucinated AI citations and concluded that monetary sanctions were no longer an effective deterrent. The court disqualified the responsible attorneys from the case and referred them to bar regulators.

Confidence
High (multi-source, primary)
Butler Snow (Johnson v. Dunn)2 sourcesCourt FilingPublicJul 2025
FI-0274Legal ServicesHigh
Hallucination

Butler Snow LLP AI hallucination leads to disqualification in Johnson v. Dunn (N.D. Alabama)

Public reporting confirms that Butler Snow LLP faced sanctions for AI-generated hallucinated citations in Johnson v. Dunn, with the court disqualifying the firm’s attorneys and referring the matter for disciplinary action; multiple sources corroborate the event and its legal implications.

Confidence
High (multi-source, primary)
Butler Snow LLP3 sourcesPrimaryPublicJul 2025
FI-0278Legal ServicesHigh
Hallucination

Judge Henry Wingate's staff used AI to draft TRO with hallucinated quotes

A law clerk for Judge Henry Wingate used generative AI to draft a TRO containing fabricated quotes and inaccuracies; the order was rescinded after errors were exposed, and the incident prompted a Senate Judiciary Committee inquiry.

Confidence
Medium (multi-source)
US District Court for the Southern District of Mississippi4 sourcesPressPublicJul 2025
FI-0017Cross-industryFeaturedHigh
Hallucination

Deloitte refunded the Australian government after an AI-assisted report cited fake sources

A A$440,000 report Deloitte submitted to the Australian Department of Employment included fake academic sources and a fabricated quote from a federal court judgment. Deloitte refunded part of the contract.

Confidence
Medium (multi-source)
Deloitte Australia2 sourcesPressPublicJul 2025
FI-0279Legal ServicesHigh
Hallucination

Judge Julien Xavier Neals withdraws CorMedix opinion after AI hallucinations

US District Judge Julien Xavier Neals withdrew a CorMedix opinion after discovering AI-generated errors, including fictitious quotes and misstatements, with withdrawal attributed to a law student intern using ChatGPT and inadequate human review.

Confidence
Medium (multi-source)
Judge Julien Xavier Neals (D.N.J.)3 sourcesPressPublicJun 2025
FI-0123Legal ServicesMedium
Hallucination

The UK High Court warned all lawyers to stop misusing AI after five hallucinated citations

In Ayinde v London Borough of Haringey, a pupil barrister at Haringey Law Centre cited five non-existent legal authorities in court filings, suspected to have been generated by AI tools without verification. Dame Victoria Sharp, President of the King's Bench Division, issued a profession-wide warning that lawyers misusing AI could face contempt of court or criminal charges for perverting the course of justice. The ruling also addressed a companion case, Al-Haroun v Qatar National Bank, where 18 of 45 cited authorities were fictitious.

Confidence
High (multi-source, primary)
Haringey Law Centre3 sourcesPrimaryPublicJun 2025
FI-0283Legal ServicesHigh
Hallucination

UK High Court warns lawyers against AI misuse after fake citations

The UK High Court warned lawyers to stop the misuse of AI after fake case-law citations appeared in court filings, with Dame Victoria Sharp flagging potential sanctions.

Confidence
Medium (multi-source)
UK High Court (England and Wales)2 sourcesPressPublicJun 2025
FI-0259HealthcareHigh
Hallucination

Sonio Detect AI ultrasound software mislabels fetal structures in prenatal imaging

Sonio Detect AI mislabels fetal anatomy in prenatal ultrasound, with a MAUDE adverse event entry and Reuters reporting; Samsung Medison says the FDA report does not indicate a safety issue and no action was requested.

Confidence
High (multi-source, primary)
Samsung Medison (Sonio SAS)2 sourcesPrimaryPublicJun 2025
FI-0510Legal ServicesMedium
Hallucination

Richard Bednar sanctioned by Utah appeals court for fake ChatGPT citations

Lawyer Richard Bednar was sanctioned by the Utah Court of Appeals for filing a petition containing fabricated legal citations generated by ChatGPT. The court found that the attorney failed his professional duty to verify the accuracy of the AI-generated content.

Confidence
Medium (multi-source)
Richard Bednar2 sourcesPressPublicMay 2025
FI-0263Public SectorMedium
Hallucination

MAHA report on children's health exposed as fabricated with AI-assisted citations

Multiple outlets reported that the MAHA Commission's presidential report included fabricated references and AI-generated markers, prompting updates while keeping core substance.

Confidence
Medium (multi-source)
Make America Healthy Again Commission (MAHA)2 sourcesPressPublicMay 2025
FI-0265Legal ServicesMedium
Hallucination

Maren Bam sanctioned for AI-generated hallucinations in federal case

Attorney Bam submitted a brief containing AI-hallucinated citations; a federal judge sanctioned Bam, striking the Opening Brief and revoking her pro hac vice status.

Confidence
High (multi-source, primary)
Salus Disability3 sourcesCourt FilingPublicMay 2025
FI-0121SaaSMedium
Hallucination

A court struck part of an Anthropic expert declaration after Claude hallucinated a citation

An expert declaration submitted by Anthropic data scientist Olivia Chen in Concord Music Group, Inc. v. Anthropic PBC contained a citation to a nonexistent article from The American Statistician journal, with a fabricated title and inaccurate authors. The citation was generated when Anthropic's attorney ran the declaration through Claude to format footnotes, and the model invented the article name and misattributed authors. U.S. Magistrate Judge Susan van Keulen struck paragraph 9 of the declaration from the record on May 23, 2025.

Confidence
High (multi-source, primary)
Anthropic3 sourcesCourt FilingPublicMay 2025
FI-0503Public SectorHigh
Hallucination

White House health report included fabricated AI citations

The White House's MAHA report on children's health was found to contain fabricated scientific citations generated by AI. This undermined the report's stated goal of adhering to the gold standard of scientific rigor.

Confidence
Medium (multi-source)
White House / Make America Healthy Again (MAHA) Commission3 sourcesPressPublicMay 2025
FI-0070Cross-industryMedium
Hallucination

A newspaper printed an AI-generated summer reading list of books that don't exist

The Chicago Sun-Times and other papers published a syndicated summer guide whose AI-generated reading list recommended novels that were never written, attributing fake titles to real, well-known authors. The outlets apologized and pulled the supplement.

Confidence
Low (single source)
Chicago Sun-Times1 sourcePressPublicMay 2025
FI-0195Public SectorHigh
Hallucination

White House MAHA report contains nonexistent studies and AI markers

The White House published a public health report containing fake AI-generated citations and 'oaicite' markers. The incident highlighted a failure in editorial oversight for AI-generated government content.

Confidence
Medium (multi-source)
White House3 sourcesPressPublicMay 2025
FI-0301Public SectorHigh
Hallucination

University at Buffalo student graduation risked by Turnitin AI false positive

A student at the University at Buffalo faced graduation delays after Turnitin falsely flagged her work as AI-generated. The event prompted a student-led petition to ban AI detectors on campus.

Confidence
High (multi-source, primary)
University at Buffalo2 sourcesPrimaryPublicMay 2025
FI-0517Cross-industryMedium
Hallucination

Coca-Cola AI ad fabricates J.G. Ballard book and quotes

Coca-Cola's "Classic" ad campaign used AI to identify literary mentions of the brand, but the system hallucinated a non-existent book by J.G. Ballard. The ad also misattributed translated interview quotes as the author's prose and misspelled his birthplace.

Confidence
Medium (multi-source)
Coca-Cola3 sourcesPressPublicMay 2025
FI-0140Cross-industryMedium
Hallucination

Wired retracted a feature after finding the byline Margaux Blanchard was an AI persona

On May 7, 2025, Wired published a feature article under the byline Margaux Blanchard about couples holding weddings inside Minecraft, but the entire freelancer identity and the story's quoted sources were fabricated using generative AI. The article bypassed Wired's standard fact-checking and senior editorial review, and two commercial AI-detection tools incorrectly classified the text as likely human-written. Wired retracted the story later that month after the writer could not provide standard payment details and further investigation confirmed the fabrication.

Confidence
High (multi-source, primary)
Wired (Conde Nast)2 sourcesPrimaryPublicMay 2025
FI-0268Legal ServicesMedium
Hallucination

Ellis George LLP and K&L Gates LLP sanctioned $31,100 for AI hallucinations

Attorneys from Ellis George LLP and K&L Gates LLP were jointly sanctioned $31,100 for submitting AI-generated citations in Lacey v. State Farm General Ins. Co., with some citations found to be nonexistent and others erroneous. The sanctioning decision was described as a collective debacle by a special master.

Confidence
Medium (multi-source)
Ellis George LLP and K&L Gates LLP3 sourcesPressPublicMay 2025
FI-0270Legal ServicesCatastrophic
Hallucination

Jisuh Lee referred for criminal contempt over AI-generated fake citations in Ontario court

Ontario lawyer Jisuh Lee submitted a factum with hallucinated or misattributed citations generated by ChatGPT. After initially denying AI involvement, she admitted using AI, and a court referral to the Attorney General followed for potential contempt.

Confidence
Medium (multi-source)
Jisuh Lee3 sourcesPressPublicMay 2025
FI-0199Cross-industryHigh
Hallucination

Deloitte Canada report for Newfoundland and Labrador contains AI-generated fake citations

Deloitte Canada produced a 526-page healthcare human resources report for the Government of Newfoundland and Labrador, at a reported cost of about $1.6 million. The report allegedly contained AI-generated fabricated citations, prompting the CPA NL to open an investigation into Deloitte's conduct.

Confidence
Medium (multi-source)
Deloitte Canada3 sourcesPressPublicMay 2025
FI-0033Legal ServicesHigh
Hallucination

MyPillow lawyers were sanctioned for a brief with nearly 30 AI-fabricated citations

In the Coomer v. Lindell defamation case, a federal judge in Colorado found nearly thirty defective citations in a brief filed by Mike Lindell's attorneys: cases that did not exist, misquoted authorities, and decisions attributed to the wrong court. Counsel admitted using generative AI and were sanctioned.

Confidence
Medium (multi-source)
Defense counsel in Coomer v. Lindell2 sourcesPressPublicApr 2025
FI-0508SaaSMedium
Hallucination

Cursor AI support bot fabricates non-existent policy, causing user backlash

Cursor AI's support bot, Sam, hallucinated a restrictive multi-device subscription policy in response to a technical bug. This fabrication led to a wave of user complaints and subscription cancellations before the company corrected the error.

Confidence
Medium (multi-source)
Cursor AI3 sourcesPressPublicApr 2025
FI-0519Public SectorHigh
Hallucination

Haringey Council homeless application judicial review cites fake law cases

In a judicial review involving a homeless applicant against Haringey Council, the claimant's legal team submitted documents citing five non-existent legal cases. The court found this conduct to be improper, unreasonable, and negligent, referring the legal team to their professional regulators and ordering them to pay wasted costs.

Confidence
Medium (multi-source)
Haringey Council2 sourcesPressPublicApr 2025
FI-0267Legal ServicesHigh
Hallucination

Dehghani v. Castro attorneys sanctioned for AI hallucinations

A filing attorney and a freelance attorney in the case of Dehghani v. Castro were sanctioned by a New Mexico federal court for submitting a brief containing AI-generated hallucinations. The court imposed fines, mandatory continuing legal education (CLE) training, and a requirement to self-report the misconduct to their respective state bars.

Confidence
High (multi-source, primary)
Attorneys in Dehghani v. Castro3 sourcesCourt FilingPublicApr 2025
FI-0127Legal ServicesMedium
Hallucination

Attorney Felipe D.J. Millan was fined $1,500 over a brief with 19 AI-fabricated case citations

In Dehghani v. Castro, petitioner's counsel Felipe D.J. Millan purchased a brief from freelance attorney Janelle M. Lewis through the LAWCLERK marketplace for $750. Lewis likely used generative AI to draft the brief, which contained six fabricated case citations and thirteen additional mis-cited cases, then destroyed all work product per LAWCLERK policy. Magistrate Judge Damian L. Martinez sanctioned Millan with a $1,500 fine, mandatory one-hour CLE training on legal ethics or AI in writing, and orders to self-report to the New Mexico and Texas state bars and to report Lewis to the New York bar.

Confidence
High (multi-source, primary)
Felipe D.J. Millan3 sourcesCourt FilingPublicApr 2025
FI-0256Public SectorMedium
Hallucination

NYPD facial recognition match leads to wrongful arrest of Trevis Williams

Two independent outlets report that NYPD used facial recognition to arrest Trevis Williams, despite height and location discrepancies, leading to jail time before charges were dismissed; advocacy groups are pushing for policy changes.

Confidence
Medium (multi-source)
New York Police Department2 sourcesPressPublicApr 2025
FI-0141Cross-industryMedium
Hallucination

Business Insider pulled two first-person essays under the fabricated byline Margaux Blanchard

In April 2025, Business Insider published two first-person essays under the byline Margaux Blanchard, a persona that did not exist and whose content was AI-generated. The articles were removed in August 2025 after Press Gazette alerted the outlet, and Business Insider stated they did not meet editorial standards and had since bolstered verification protocols. At least six publications in total had published and later removed articles under the same fabricated byline.

Confidence
High (multi-source, primary)
Business Insider3 sourcesPrimaryPublicApr 2025
FI-0300Public SectorMedium
Hallucination

Yale EMBA student sues over AI-based exam accusation

A Yale EMBA student sued Yale after an AI detector flagged his final exam, leading to suspension and a failing grade.

Confidence
Medium (multi-source)
Yale University2 sourcesPressPublicMar 2025
FI-0069Travel & HospitalityMedium
Hallucination

An airline chatbot gave a passenger a wrong refund policy, echoing the Air Canada problem

Passengers reported that airline and travel-agency chatbots continued to state refund and rebooking policies that did not match the carriers' actual rules, a year after the Air Canada tribunal ruling, showing the hallucinated-policy failure mode persisting across the travel industry.

Confidence
Low (single source)
Air India Express / MakeMyTrip1 sourcePressPublicFeb 2025
FI-0035Legal ServicesMedium
Hallucination

A lawyer faced a $15,000 sanction for AI-fabricated citations across three briefs

In an Indiana ERISA case, a federal magistrate judge recommended a $15,000 sanction against a solo practitioner who filed three briefs containing fake citations generated by AI, including a case that did not exist. The lawyer admitted he relied on generative AI and did not verify the cases.

Confidence
Low (single source)
HoosierVac counsel (Mid Central v. HoosierVac)1 sourcePressPublicFeb 2025
FI-0511Legal ServicesMedium
Hallucination

Indiana lawyer faces recommended $15,000 fine for fake AI citations

Attorney Rafael Ramirez was recommended for a $15,000 sanction by a federal magistrate judge in Indiana for submitting briefs with fake AI-generated citations. The lawyer admitted to relying on generative AI without verifying the sources.

Confidence
Medium (multi-source)
Attorney Rafael Ramirez3 sourcesPressPublicFeb 2025
FI-0146Public SectorMedium
Hallucination

France's government-backed chatbot Lucie was pulled after three days of absurd answers

Linagora's open source AI chatbot Lucie, developed under the French government's France 2030 investment program, was taken offline on January 25, 2025, just three days after its public launch. Users flooded social media with examples of the bot confidently giving nonsensical answers, including claiming that cows lay eggs, providing recipes for cooking meth, and stating that the square root of a goat is one. Linagora admitted the model had been released prematurely without adequate guardrails or reinforcement learning.

Confidence
Medium (multi-source)
Linagora2 sourcesPressPublicJan 2025
FI-0266Legal ServicesMedium
Hallucination

Morgan & Morgan lawyers sanctioned for AI-generated fake citations in Wyoming case

Morgan & Morgan attorneys were sanctioned in the District of Wyoming for filing a motion containing eight fabricated case citations generated by an internal AI platform. The court fined three attorneys a total of $5,000 and removed Rudwin Ayala from the case.

Confidence
High (multi-source, primary)
Morgan & Morgan3 sourcesCourt FilingPublicJan 2025
FI-0271Legal ServicesHigh
Hallucination

Thomas Grant Neusom suspended for two years over AI hallucinated citations

Florida Supreme Court suspended attorney Thomas Grant Neusom for two years due to professional misconduct, with evidence including AI-generated, hallucinated citations in pleadings.

Confidence
High (multi-source, primary)
Thomas Grant Neusom2 sourcesPrimaryPublicJan 2025
FI-0139Fintech & PaymentsMedium
Hallucination

Bloomberg issued at least 36 corrections to AI-generated Terminal news summaries

Bloomberg launched AI-generated bullet-point summaries atop its Terminal and website articles on January 15, 2025, and subsequently had to issue at least 36 corrections for errors including wrong dates, inaccurate figures, and misattributed claims. Specific errors included incorrectly stating when Trump tariff actions would take place and falsely claiming the United Steelworkers opposed a mill owner's plans. Bloomberg stated that 99 percent of AI summaries met editorial standards and that journalists retained full control over whether summaries appeared.

Confidence
Medium (multi-source)
Bloomberg2 sourcesPressPublicJan 2025
FI-0275Public SectorHigh
Hallucination

Kohls v Ellison: Expert AI declaration excluded for fake citations

In Kohls v Ellison, a Stanford professor submitted an AI‑assisted expert declaration that contained fake citations; the court excluded the declaration and criticized the use of AI in the filing, underscoring the need to verify AI outputs in legal submissions.

Confidence
High (multi-source, primary)
Minnesota Attorney General's Office2 sourcesCourt FilingPublicJan 2025
FI-0046SaaSHigh
Hallucination

Apple Intelligence generated false BBC news headlines, prompting Apple to pull the feature

Apple's notification summaries fabricated news, including a false BBC alert that murder suspect Luigi Mangione had shot himself, plus invented sports and celebrity claims. After repeated complaints from the BBC and others, Apple suspended AI summaries for news apps.

Confidence
Medium (multi-source)
Apple2 sourcesPressPublicJan 2025
FI-0067Legal ServicesHigh
Hallucination

A misinformation expert's own court filing contained AI-hallucinated citations

In a Minnesota case about deepfakes and elections, a Stanford misinformation expert submitted a declaration supporting the state that itself contained citations to studies that did not exist, generated by AI. The court declined to consider the declaration after the fake references came to light.

Confidence
Medium (multi-source)
New Orleans / Stanford2 sourcesPressPublicDec 2024
FI-0313Public SectorMedium
Hallucination

ITAT Bengaluru withdraws tax order citing fake AI judgments

The ITAT Bengaluru withdrew a tax order involving Buckeye Trust after discovering it relied on fake legal precedents generated by AI. The incident highlights the risk of using generative AI for legal research without rigorous verification.

Confidence
Medium (multi-source)
Income Tax Appellate Tribunal (ITAT) Bengaluru2 sourcesPressPublicDec 2024
FI-0091Retail & E-commerceMedium
Hallucination

Amazon's Rufus shopping assistant recommended wrong products and hallucinated nonexistent items

Amazon's generative AI shopping assistant Rufus began directly recommending products with buy buttons but frequently suggested items that did not match user queries, such as non-TV products for gaming TV requests and random gloves for winter running queries. Retailers reported that Rufus hallucinated products that were out of stock or did not exist on Amazon at all. The issue gained public attention after Marketplace Pulse and other outlets documented the pattern in November 2024.

Confidence
Medium (multi-source)
Amazon2 sourcesPressPublicNov 2024
FI-0269Legal ServicesMedium
Hallucination

Attorney Rafael Ramirez sanctioned for AI hallucinations in HoosierVac case

Attorney Rafael Ramirez was sanctioned $6,000 after filing three briefs containing non-existent citations generated by AI, with the court later reducing the originally recommended $15,000 sanction and referring Ramirez for disciplinary action.

Confidence
High (multi-source, primary)
Rafael Ramirez3 sourcesCourt FilingPublicOct 2024
FI-0188HealthcareHigh
Hallucination

OpenAI Whisper hallucinations in medical settings prompt safety concerns, AP reports

Independent outlets report that OpenAI Whisper can hallucinate in medical transcription, risking inaccurate patient documentation. The AP investigation notes thousands of healthcare workers use Whisper-based tools, highlighting potential safety concerns in high-risk settings.

Confidence
Medium (multi-source)
OpenAI3 sourcesPressPublicOct 2024
FI-0260HealthcareHigh
Hallucination

Pieces Technologies settles Texas AG allegations over AI hallucination claims

Pieces Technologies reached a settlement with the Texas Attorney General following allegations that the company made deceptive claims regarding the accuracy of its generative AI clinical documentation tool. The investigation found metrics such as a severe hallucination rate of less than 1 per 100,000 were likely inaccurate.

Confidence
High (multi-source, primary)
Pieces Technologies3 sourcesPrimaryPublicSep 2024
FI-0216Cross-industryMedium
Hallucination

McDonald's ends IBM AI drive-thru order-taking pilot

McDonald's terminated its global IBM AI drive-thru pilot in June 2024 after widespread order inaccuracies and handling of diverse accents; the project began in 2021 and faced multiple reported mishaps. The partnership with IBM was ended, and coverage notes issues with order accuracy and cross-lane misreads.

Confidence
Medium (multi-source)
McDonald's3 sourcesPressPublicJun 2024
FI-0156SaaSHigh
Hallucination

Turnitin's AI detector falsely flagged thousands of students' original work

Turnitin's AI writing detection tool produced false positive results that identified human-written student submissions as AI-generated, leading universities to open academic misconduct proceedings based primarily on those scores. At Australian Catholic University alone, approximately 6,000 cases were registered in 2024 with roughly 90 percent related to AI allegations, and around one quarter of all referrals were ultimately dismissed. Students bore the burden of proving their innocence by supplying handwritten notes, search histories, and drafts, with transcripts marked as results withheld during investigations lasting six months or more.

Confidence
High (multi-source, primary)
Turnitin3 sourcesPrimaryPublicJun 2024
FI-0138Cross-industryMedium
Hallucination

Hoodline published AI-generated local news with hallucinated details and fake bylines

Hoodline, a hyperlocal news network owned by Impress3, used AI to generate local news articles containing hallucinated details, fabricated poetic language, and mischaracterized police press releases across dozens of US cities. The articles were attributed to fake bylines with AI-generated headshots and biographies, misleading readers into believing real journalists wrote the stories. CEO Zack Chen defended the practice, calling one fabricated detail a punctuation error and the invented prose an uncommon but not inaccurate storytelling method.

Confidence
Medium (multi-source)
Hoodline (Impress3)3 sourcesPressPublicJun 2024
FI-0504Cross-industryHigh
Hallucination

Hoodline AI mistakenly accuses San Mateo District Attorney of murder

The AI-powered news network Hoodline published a story falsely accusing the San Mateo District Attorney of murder. The network subsequently corrected the error.

Confidence
Medium (multi-source)
Hoodline2 sourcesPressPublicJun 2024
FI-0044Cross-industryHigh
Hallucination

Google's AI Overviews told users to put glue on pizza and eat rocks

Soon after Google rolled out AI Overviews in search, the feature surfaced dangerous and absurd answers: telling users to add glue to keep cheese on pizza and to eat a small rock a day. The answers came from the model treating satire and forum jokes as authoritative sources.

Confidence
Medium (multi-source)
Google2 sourcesPressPublicMay 2024
FI-0507Cross-industryMedium
Hallucination

PLOS ONE retracts blended learning paper for AI generated text

PLOS ONE retracted a research paper on blended learning after discovering evidence of undisclosed AI-generated text. The retraction was triggered by the inclusion of the phrase "regenerate response" and numerous hallucinated references.

Confidence
High (multi-source, primary)
PLOS ONE2 sourcesPrimaryPublicApr 2024
FI-0490Retail & E-commerceMedium
Hallucination

Foodstuffs facial recognition misidentifies Māori shopper at Rotorua New World

On 2024-04-02 a Māori woman shopping at New World Westend in Rotorua was approached by store staff and told she had been trespassed after a facial recognition alert from a Foodstuffs trial. The customer offered three forms of photo ID but was still asked to leave; Foodstuffs called it a genuine case of human error and said it reported the incident to the Office of the Privacy Commissioner. Experts and the Privacy Commissioner raised concerns about bias and accuracy in the trialled system, which was trained on international data and not specifically on New Zealand populations.

Confidence
High (multi-source, primary)
Foodstuffs (New Zealand)3 sourcesPrimaryPublicApr 2024
FI-0105Retail & E-commerceMedium
Hallucination

Wendy's FreshAI drive-thru agent misheard orders and cut customers off mid-sentence

Wendy's deployed FreshAI, a Google Cloud generative AI voice agent, at drive-thru locations beginning with a Columbus, Ohio pilot in June 2023 and expanding to franchisees in 2024. The system frequently misheard orders, cut customers off mid-sentence, failed to process simple customizations like removing a pickle, and interrupted ordering with aggressive upsell suggestions. Customers found the experience so frustrating that some reported permanently driving to farther Wendy's locations that still used human order takers.

Confidence
Medium (multi-source)
Wendy's3 sourcesPressPublicApr 2024
FI-0004Public SectorFeaturedCatastrophic
Hallucination

New York City's small-business chatbot told users to break the law

MyCity, the chatbot launched by the New York City Mayor's office, advised users on how to commit wage theft, fire workers who complained about harassment, and serve food bitten by rats.

Confidence
Medium (multi-source)
City of New York2 sourcesPressPublicMar 2024
FI-0194Public SectorHigh
Hallucination

NYC MyCity AI chatbot gave illegal guidance to small businesses

New York City's MyCity AI chatbot gave illegal advice to businesses regarding housing and labor laws. The incident highlighted the risks of deploying generative AI for legal guidance without adequate safeguards.

Confidence
High (multi-source, primary)
New York City Government2 sourcesPrimaryPublicMar 2024
FI-0207Public SectorHigh
Hallucination

NYC AI chatbot tells businesses to break the law

A Microsoft-powered NYC chatbot meant to help small businesses gave legally incorrect guidance, including claims that employers could seize tips and fire employees for reporting sexual harassment. The incident is documented by The Markup, The City, and AP News with follow-up coverage noting misinformation about housing and employment laws.

Confidence
Medium (multi-source)
New York City3 sourcesPressPublicMar 2024
FI-0084Fintech & PaymentsHigh
Hallucination

TurboTax's Intuit Assist gave wrong tax advice on over half of test questions, the Post found

Washington Post tech columnist Geoffrey A. Fowler tested TurboTax's Intuit Assist AI chatbot with 16 tax questions and found it gave wrong or irrelevant answers on more than half. Specific failures included recommending incorrect filing statuses and fabricating irrelevant education credit advice when asked about air conditioner tax credits. Even after Intuit updated the software, the chatbot remained unhelpful on a quarter of the questions.

Confidence
Medium (multi-source)
Intuit3 sourcesPressPublicMar 2024
FI-0085Cross-industryHigh
Hallucination

H&R Block's AI Tax Assist gave wrong or unhelpful answers to 30%+ of tax questions tested

Washington Post columnist Geoffrey A. Fowler tested H&R Block's AI Tax Assist with tax professionals and found it gave wrong or unhelpful answers to more than 30 percent of questions. Specific errors included advising a single parent to file as Single instead of Head of Household and incorrectly stating the IRS had not addressed cryptocurrency wash sale rules. H&R Block defended the tool by saying the test questions lacked specificity and the bot was curated for common tax scenarios from the prior year.

Confidence
Medium (multi-source)
H&R Block2 sourcesPressPublicMar 2024
FI-0120Legal ServicesMedium
Hallucination

A Massachusetts court sanctioned counsel $2,000 over three filings with AI-fabricated citations

In Smith v. Farwell (Civil Action No. 2282CV01197), the Suffolk Superior Court of Massachusetts ordered plaintiff counsel to pay a $2,000 sanction after three opposition pleadings contained fictitious case citations generated by an AI system. An associate attorney and two recent law graduates used an unidentified AI to draft the filings, and the supervising attorney reviewed them only for style and grammar without verifying the citations. Justice Brian A. Davis found a knowing failure to review under Mass. R. Civ. P. 11 and imposed the sanction on February 12, 2024.

Confidence
High (multi-source, primary)
Law Office of Jae S. Lee3 sourcesCourt FilingPublicFeb 2024
FI-0210Legal ServicesMedium
Hallucination

Massachusetts attorney sanctioned for citing AI generated fictitious cases

In a Massachusetts Superior Court case, a lawyer faced sanctions for submitting pleadings containing fictitious AI-generated citations; the ruling underscored the duty to verify AI-generated content before filing.

Confidence
High (multi-source, primary)
Unnamed Massachusetts attorney2 sourcesPrimaryPublicFeb 2024
FI-0488Public SectorMedium
Hallucination

Met Police facial recognition wrongly matched youth worker Shaun Thompson

In February 2024 Shaun Thompson, a youth advocacy worker, was stopped and questioned after the Metropolitan Police's live facial‑recognition system matched him to a watchlist entry. The encounter lasted around 30 minutes and ended when Thompson produced ID; he subsequently brought a High Court challenge to the Met's use of LFR, which was dismissed on 2026-04-21. Reporting on the case is documented by multiple independent outlets including the BBC and The Independent.

Confidence
Medium (multi-source)
Metropolitan Police Service (Met Police)3 sourcesPressPublicFeb 2024
FI-0516Cross-industryLow
Hallucination

AI generated news article falsely quotes Professor Emily Bender

The Indian news website Biharprabha published an AI-generated article that included a fabricated quote attributed to linguistics professor Emily Bender. The quote falsely claimed that Meta's BlenderBot 3 showed the company's struggle with AI bias.

Confidence
High (multi-source, primary)
Biharprabha3 sourcesPrimaryPublicFeb 2024
FI-0108Public SectorHigh
Hallucination

UK GOV.UK Chat gave citizens incorrect tax, VAT, and immigration advice in its alpha pilot

The UK Government Digital Service's GOV.UK Chat prototype produced inaccurate or misleading responses during a private pilot with approximately 1,000 users, scoring only 76% accuracy at its earliest benchmark. The system gave incorrect advice on tax, VAT registration, EU Settlement Scheme, and flight refund matters before GDS added filters to block certain question categories. The Times later reported that the chatbot gave misleading tax information, drawing criticism from tax professionals.

Confidence
High (multi-source, primary)
UK Government Digital Service (GDS)3 sourcesPrimaryPublicJan 2024
FI-0092Retail & E-commerceMedium
Hallucination

Instacart quietly removed AI-generated recipe photos users found impossible and unappetizing

Instacart deployed AI-generated images alongside recipe content on its platform that contained physically impossible food depictions such as conjoined chickens, hot dogs with tomato interiors, and lemons fused with lettuce. After users flagged the images on Reddit and press coverage ensued, Instacart quietly removed the offending AI images and replaced some with stock photography. The company stated it reviews AI-generated content and may remove it when it does not deliver a high-quality consumer experience.

Confidence
Medium (multi-source)
Instacart3 sourcesPressPublicJan 2024
FI-0521Cross-industryMedium
Hallucination

NewsBreak AI fabricates story about Christmas Day murder in New Jersey

NewsBreak used AI to publish a fake news story about a fatal Christmas shooting in New Jersey. Local police had to publicly debunk the report, which the company later attributed to an inaccurate content source.

Confidence
Medium (multi-source)
NewsBreak2 sourcesPressPublicDec 2023
FI-0285Cross-industryMedium
Hallucination

Microsoft Copilot generates inaccurate information about European elections

Microsoft's Copilot chatbot generated false information about Swiss and German elections in December 2023. The system misquoted sources, leading to the dissemination of electoral misinformation.

Confidence
Medium (multi-source)
Microsoft Corporation2 sourcesPressPublicDec 2023
FI-0122Legal ServicesMedium
Hallucination

Felicity Harber submitted nine fictitious AI-generated case citations to a UK tribunal

Felicity Harber, a litigant in person appealing an HMRC penalty for failure to notify Capital Gains Tax liability, submitted nine fabricated First-tier Tribunal case citations generated by an AI system such as ChatGPT. The Tribunal found that none of the cited cases existed on any legal database, though they bore superficial similarities to real cases. The Tribunal accepted Harber was unaware the cases were fabricated but dismissed her appeal and warned that citing invented judgments wastes public money and undermines confidence in the judicial system.

Confidence
High (multi-source, primary)
Felicity Harber3 sourcesCourt FilingPublicDec 2023
FI-0401Legal ServicesMedium
Hallucination

Amazon Q chatbot allegedly leaks confidential AWS data and hallucinations

Amazon's AI chatbot, Q, allegedly suffered from severe hallucinations and leaked confidential company data, including data center locations. While internal documents flagged the issue as a significant incident, Amazon spokespeople denied that any confidential information was leaked.

Confidence
Medium (multi-source)
Amazon2 sourcesPressPublicDec 2023
FI-0308Cross-industryHigh
Hallucination

Tesla FSD system fails to detect reduced visibility in fatal crash

A fatal accident occurred on November 28, 2023, involving Tesla's Full Self-Driving software during periods of reduced visibility. Federal investigations found the software's degradation detection system failed to recognize impaired camera performance.

Confidence
High (multi-source, primary)
Tesla4 sourcesPrimaryPublicNov 2023
FI-0264Legal ServicesHigh
Hallucination

Zachariah Crabill suspended for AI-generated hallucinated case law

Attorney Zachariah Crabill was sanctioned by the Colorado bar for submitting a court filing with fake case law generated by ChatGPT. This resulted in a 90-day disciplinary suspension.

Confidence
High (multi-source, primary)
Zachariah Crabill3 sourcesCourt FilingPublicNov 2023
FI-0425HealthcareHigh
Hallucination

Large language models perpetuate racial bias in healthcare

AIAAIC recorded an incident entry (published November 2023) documenting that large language models (LLMs) have produced racially biased outputs in healthcare contexts. Independent academic audits and studies (including a 2024 audit titled "Unmasking and Quantifying Racial Bias of Large Language Models") found LLMs gave systematically different clinical-related recommendations and projections across racial groups. These outputs have the potential to cause harm when used in clinical decision-making by healthcare deployers.

Confidence
High (multi-source, primary)
Unspecified / healthcare deployer3 sourcesPrimaryPublicNov 2023
FI-0193Public SectorMedium
Hallucination

Plainfield Police Department predictive policing software fails to predict crimes

The Markup and Wired reported that Geolitica's predictive policing software for Plainfield PD produced thousands of predictions with a success rate under 1 percent across 23,631 predictions, and the department stopped using it.

Confidence
Medium (multi-source)
Geolitica2 sourcesPressPublicOct 2023
FI-0515Cross-industryMedium
Hallucination

ChatGPT fabricates academic citations for biologist Henrik Enghoff

A scientific preprint about millipedes, authored using ChatGPT, included several fake academic references attributed to biologist Henrik Enghoff. Enghoff discovered the fabrications when he noticed his name linked to papers he had never written.

Confidence
Medium (multi-source)
OpenAI3 sourcesPressPublicSep 2023
FI-0290Cross-industryMedium
Hallucination

Gannett pauses 2023 AI high school sports recap tool after placeholders appeared

In August 2023, Gannett paused its AI tool Lede AI used to generate high school sports recaps after articles showed data-coverage errors, including placeholder text like [[WINNING_TEAM_MASCOT]]. The incident was documented by Axios, The Washington Post, and Morning Brew.

Confidence
Medium (multi-source)
Gannett Co., Inc.3 sourcesPressPublicAug 2023
FI-0065Cross-industryMedium
Hallucination

Gannett paused an AI sports-writing tool after garbled, error-filled local articles

The newspaper chain Gannett halted use of an AI tool called LedeAI after it produced robotic, error-strewn high-school sports recaps that went viral for phrases like describing a game as a 'close encounter of the athletic kind' and leaving placeholder text in published stories.

Confidence
Low (single source)
Chattanooga / Gannett1 sourcePressPublicAug 2023
FI-0214Retail & E-commerceCatastrophic
Hallucination

Pak'nSave Savey Meal-bot suggests recipes using toxic household chemicals

Pak'nSave's AI-powered Savey Meal-bot generated hazardous recipes, including a mixture creating chlorine gas, when users input non-food household items. The AI failed to recognize the danger of the ingredients, treating them as edible components for a meal planner.

Confidence
Medium (multi-source)
Pak'nSave3 sourcesPressPublicAug 2023
FI-0137Cross-industryMedium
Hallucination

G/O Media's AI-generated Star Wars article on Gizmodo had at least 18 factual errors

G/O Media used AI chatbots to generate and auto-publish a Star Wars article on Gizmodo that contained at least 18 factual errors, including a chronological movie list that was not in chronological order and omitted several titles. The article was published under the byline Gizmodo Bot with no human editorial review, and deputy editor James Whitbrook identified the errors immediately upon publication. The GMG Union publicly condemned the articles as unethical and unacceptable, and Gizmodo appended a correction the following day.

Confidence
Medium (multi-source)
G/O Media2 sourcesPressPublicJul 2023
FI-0209Legal ServicesMedium
Hallucination

California attorney fined $10,000 for filing appeal with fake AI citations

The California appeals court fined Amir Mostafavi $10,000 after discovering 21 of 23 quotes in the opening brief were fabricated by ChatGPT. The ruling serves as a warning to lawyers about the dangers of submitting unverified AI content.

Confidence
Medium (multi-source)
Amir Mostafavi2 sourcesPressPublicJul 2023
FI-0192Legal ServicesMedium
Hallucination

S.D.N.Y. sanctions attorneys for using fake ChatGPT citations

Attorneys in the Mata v. Avianca case submitted legal briefs containing non-existent case citations generated by ChatGPT. The court issued a $5,000 sanction against the lawyers for their failure to verify the AI-generated content.

Confidence
High (multi-source, primary)
LewKis Law2 sourcesCourt FilingPublicJun 2023
FI-0206Legal ServicesMedium
Hallucination

Levidow, Levidow and Oberman sanctioned for ChatGPT fabricated citations

Attorneys Schwartz and LoDuca of Levidow, Levidow & Oberman used ChatGPT to generate legal research, which produced six fake judicial opinions. The court sanctioned the firm and the attorneys with a $5,000 fine after the fabricated citations were discovered.

Confidence
Medium (multi-source)
Levidow, Levidow and Oberman3 sourcesPressPublicJun 2023
FI-0350SaaSHigh
Hallucination

Stack Overflow overwhelmed by AI-generated answers and moderator strike

Stack Overflow faced a surge of AI-generated, low-quality answers that overwhelmed both automated detection and volunteer moderation. The situation led to a public moderation strike on June 5, 2023 and prompted company-community negotiations after prior temporary measures such as a ChatGPT answer ban.

Confidence
High (multi-source, primary)
Stack Overflow3 sourcesPrimaryPublicJun 2023
FI-0042Legal ServicesHigh
Hallucination

ChatGPT invented an embezzlement claim, prompting a first-of-its-kind libel suit

Radio host Mark Walters sued OpenAI for libel after ChatGPT, asked to summarize a real lawsuit, fabricated a claim that Walters had embezzled from a nonprofit. He had no connection to the case. It was among the first defamation suits over an AI hallucination.

Confidence
Medium (multi-source)
OpenAI2 sourcesPressPublicJun 2023
FI-0008Legal ServicesFeaturedCatastrophic
Hallucination

Lawyers cited six fake cases generated by ChatGPT in federal court

In Mata v. Avianca, two attorneys filed a brief citing six judicial decisions that did not exist. ChatGPT had fabricated them. The court sanctioned the lawyers and the case became the inflection point for legal AI policy.

Confidence
High (multi-source, primary)
Levidow, Levidow & Oberman2 sourcesCourt FilingPublicMay 2023
FI-0043Public SectorMedium
Hallucination

ChatGPT falsely named an Australian mayor as a convicted briber

Brian Hood, a regional Australian mayor, threatened to sue OpenAI after ChatGPT described him as a convicted criminal in a bribery scandal. In reality Hood was the whistleblower who exposed the scheme, not a participant, making it an early defamation threat over a chatbot hallucination.

Confidence
Low (single source)
OpenAI1 sourcePressPublicApr 2023
FI-0514Public SectorHigh
Hallucination

USCIS AI translation errors in Pashto jeopardize Afghan asylum claims

US Citizenship and Immigration Services (USCIS) and its contractors relied on AI translation tools for Afghan refugee asylum claims, leading to critical errors in Pashto and Dari translations. These inaccuracies resulted in discrepancies that led to the denial of asylum claims.

Confidence
Medium (multi-source)
US Citizenship and Immigration Services2 sourcesPressPublicApr 2023
FI-0286Cross-industryMedium
Hallucination

Snap Inc. My AI chatbot produced toxic outputs and faced UK regulatory probe

Snap launched My AI in February 2023, which subsequently produced problematic outputs and hallucinations. This led to an investigation by the UK's ICO regarding child privacy and safety guardrails, and the company acknowledged non-conforming language in internal reviews and outlined safety enhancements.

Confidence
High (multi-source, primary)
Snap Inc.4 sourcesPrimaryPublicFeb 2023
FI-0110Public SectorHigh
Hallucination

Detroit police facial recognition misidentified a pregnant woman, causing a wrongful arrest

On February 16, 2023, Detroit police arrested Porcha Woodruff, who was eight months pregnant, after DataWorks Plus facial recognition software matched her to surveillance footage of a carjacking and robbery suspect. She was held for approximately 11 hours at the Detroit Detention Center before being released on a $100,000 personal bond, and the criminal case was dismissed on March 6, 2023 for insufficient evidence. Woodruff filed a federal civil rights lawsuit in August 2023, which was dismissed in September 2025 after the judge ruled the detective had probable cause at the time of the arrest.

Confidence
High (multi-source, primary)
Detroit Police Department3 sourcesCourt FilingPublicFeb 2023
FI-0047Cross-industryHigh
Hallucination

A factual error in Google Bard's launch demo wiped about $100B in market value

In its first public demo, Google's Bard claimed the James Webb Space Telescope took the first image of an exoplanet, which was wrong. The visible error in the launch ad contributed to a 7-8% drop in Alphabet's stock, erasing roughly $100 billion in market value in a day.

Confidence
Medium (multi-source)
Google2 sourcesPressPublicFeb 2023
FI-0291Cross-industryMedium
Hallucination

Mens Journal AI-generated health story cited for numerous inaccuracies in 2023

Two independent outlets documented that Men's Journal published an AI-generated health article containing inaccuracies, followed by corrections and editor notes, with experts noting mischaracterizations of medical science.

Confidence
Medium (multi-source)
Men's Journal (owned by The Arena Group)2 sourcesPressPublicFeb 2023
FI-0143Cross-industryMedium
Hallucination

Bankrate paused its AI personal-finance articles after they ran factual errors

Bankrate, owned by Red Ventures, published AI-generated personal finance explainers that contained factual errors including an incorrect claim that a 5/1 ARM is definitively a 30-year mortgage, garbled text, and misleading omissions about the risks of adjustable-rate mortgages. Red Ventures announced a pause of the AI content program on January 20, 2023, after widespread media coverage of the errors, though Bankrate quietly continued publishing AI articles after the stated suspension. The company rolled back error-ridden articles to prior human-written versions after being contacted by reporters.

Confidence
Medium (multi-source)
Bankrate (Red Ventures)3 sourcesPressPublicJan 2023
FI-0054Cross-industryHigh
Hallucination

CNET quietly published AI-written finance articles riddled with errors

The tech outlet CNET published dozens of personal-finance articles generated by an AI tool without clearly disclosing it. Reviewers found factual errors in a majority of them, and CNET had to issue corrections and pause the program amid criticism of accuracy and plagiarism.

Confidence
Medium (multi-source)
CNET (Red Ventures)2 sourcesPressPublicJan 2023
FI-0190Public SectorHigh
Hallucination

Randal Quran Reid wrongfully arrested due to facial recognition misidentification

Randal Quran Reid was wrongfully arrested in Georgia due to a facial recognition error by the Jefferson Parish Sheriff's Office. The agency relied on an incorrect match without verifying if the subject had ever visited Louisiana. The incident led to a lawsuit and a subsequent $200,000 settlement.

Confidence
Medium (multi-source)
Jefferson Parish Sheriff's Office3 sourcesPressPublicNov 2022
FI-0455Public SectorHigh
Hallucination

VioGén risk-assessment used by Spanish National Police misclassified victims

An academic review and investigative reporting documented transparency, accuracy, and governance problems with VioGén, the Spanish police risk-assessment tool overseen by the Interior Ministry. Reporting and analyses found that the system classified many cases as negligible or low risk and that some victims later suffered repeat attacks or were killed, prompting rights and oversight concerns.

Confidence
High (multi-source, primary)
Spanish National Police (Ministry of the Interior)2 sourcesPrimaryPublicNov 2022
FI-0072Cross-industryMedium
Hallucination

Meta pulled its Galactica science AI after three days of confident fabrications

Meta released Galactica, a language model meant to summarize science, and took it down within three days after it generated authoritative-sounding but false papers, citations, and wiki entries, including fabricated science attributed to real researchers.

Confidence
Low (single source)
Meta1 sourcePressPublicNov 2022
FI-0001Travel & HospitalityFeaturedHigh
Hallucination

Air Canada ordered to honor refund its chatbot invented

A British Columbia tribunal ruled that Air Canada was bound by a bereavement-fare policy its chatbot fabricated. The airline argued the bot was a separate legal entity. The tribunal disagreed.

Confidence
High (multi-source, primary)
Air Canada2 sourcesCourt FilingPublicNov 2022
FI-0257HealthcareCatastrophic
Hallucination

Acclarent TruDi AI navigation system allegedly causes carotid artery injuries

The Acclarent TruDi AI navigation system allegedly misled surgeons during sinus operations, resulting in carotid artery punctures and strokes. FDA malfunction reports reportedly rose after AI integration in 2021, and two patients filed Texas lawsuits alleging AI contributed to injuries.

Confidence
Medium (multi-source)
Acclarent (Integra LifeSciences)2 sourcesPressPublicJun 2022
FI-0095HealthcareHigh
Hallucination

Epic's sepsis prediction model missed two-thirds of cases with 88% false alarms, a study found

The Epic Sepsis Model, a proprietary sepsis prediction algorithm embedded in Epic's electronic health record platform and deployed at hundreds of US hospitals, was found to miss 67% of sepsis cases while generating 88% false alarms in an independent external validation published in JAMA Internal Medicine in June 2021. The model's discrimination (AUC 0.63) was substantially worse than Epic's claimed performance (AUC 0.76 to 0.83). Epic subsequently overhauled the model in 2022, changing its sepsis definition, reducing reliance on antibiotic orders, and recommending site-specific training before clinical use.

Confidence
High (multi-source, primary)
Epic Systems3 sourcesPrimaryPublicJun 2021
FI-0258HealthcareLow
Hallucination

Medtronic AccuRhythm AI misses abnormal rhythms in LINQ monitors, per FDA and Reuters

Between 2021 and 2025, at least 16 FDA adverse event reports alleged that Medtronic's AccuRhythm AI in LINQ monitors failed to detect abnormal heart rhythms. Medtronic said it reviewed the cases and found only one missed abnormal event, attributing others to data display issues or user confusion; no patient harm was reported.

Confidence
High (multi-source, primary)
Medtronic2 sourcesCourt FilingPublicJan 2021
FI-0415Public SectorHigh
Hallucination

Aurora police ALPR false match led to family detained at gunpoint

In early August 2020 Aurora, Colorado officers stopped a Black mother and several children after an Automated License Plate Reader reportedly flagged the family's vehicle as matching a stolen motorcycle registered in another state. Officers conducted a high-risk stop, drew weapons, and several children were handcuffed; officers later determined the vehicle was not stolen. The City of Aurora reached a $1.9 million settlement with the family in February 2024.

Confidence
Medium (multi-source)
Aurora Police Department (City of Aurora)4 sourcesPressPublicAug 2020
FI-0360HealthcareHigh
Hallucination

Babylon Health symptom checker alleged to miss or downplay critical symptoms

Multiple news investigations and clinicians' tests in 2019-2021 documented examples where Babylon Health’s symptom checker produced unsafe or inappropriate triage recommendations for serious symptoms. The UK regulator MHRA told a clinician who raised concerns that it shared those concerns, and Babylon acknowledged some errors in examples highlighted by critics.

Confidence
Medium (multi-source)
Babylon Health2 sourcesPressPublicJun 2020
FI-0111Public SectorHigh
Hallucination

Reno police facial recognition misidentified an innocent man, leading to a $100,000 settlement

Reno Police Department used DataWorks Plus facial recognition software to match a surveillance photo to an innocent individual, resulting in a wrongful arrest. The City of Reno settled the resulting civil rights lawsuit for $100,000 and agreed to policy changes restricting facial recognition use. The department had no formal training or policies governing facial recognition technology at the time of the incident, and also maintained documented use of Clearview AI for separate searches.

Confidence
Medium (multi-source)
Reno Police Department3 sourcesPressPublicMay 2020
FI-0390Public SectorHigh
Hallucination

US government asylum claim denied due to AI translation error

A Pashto-speaking refugee's asylum bid was rejected by a US court after an AI translation tool incorrectly changed "I" to "we" in her written statement. This created a perceived contradiction with her oral testimony, leading to the denial of her asylum claim.

Confidence
Medium (multi-source)
US Government2 sourcesPressPublicJan 2020
FI-0220Retail BankingHigh
Hallucination

Bank of America fined $225 million for faulty automated fraud filter on unemployment cards

Federal regulators fined Bank of America $225 million for botching the disbursement of state unemployment benefits at the height of the pandemic. The bank’s faulty automated fraud detection program allegedly froze legitimate accounts, denying some beneficiaries access to funds.

Confidence
High (multi-source, primary)
Bank of America2 sourcesPrimaryPublicJan 2020
FI-0295Fintech & PaymentsMedium
Hallucination

Goldman Sachs Apple Card underwriting model investigated for perceived gender bias

Goldman Sachs Bank USA's Apple Card underwriting faced a regulatory inquiry. The NYDFS found no evidence of disparate impact but criticized transparency and customer communication around the algorithmic decisions.

Confidence
High (multi-source, primary)
Goldman Sachs Bank USA2 sourcesPrimaryPublicNov 2019
FI-0444Public SectorHigh
Hallucination

Woodbridge Police Department wrongfully arrests man via facial recognition

The Woodbridge Police Department arrested Nijeer Parks for shoplifting after facial recognition software incorrectly identified him as a suspect. Parks was jailed for ten days despite being 30 miles away during the crime.

Confidence
Medium (multi-source)
Woodbridge Police Department2 sourcesPressPublicFeb 2019
FI-0445Public SectorHigh
Hallucination

Buenos Aires facial recognition system causes numerous wrongful arrests

The City of Buenos Aires implemented an AI facial recognition system for public security that resulted in over 140 false identifications and wrongful detentions. This led to a legal battle and a court ruling that declared the program's implementation unconstitutional.

Confidence
Medium (multi-source)
Buenos Aires City Government2 sourcesPressPublicJan 2019
FI-0491Retail & E-commerceHigh
Hallucination

Apple alleged to have misidentified Ousmane Bah in store surveillance

A lawsuit filed in April 2019 alleges that Apple’s in‑store security system associated surveillance images of a shoplifter with Ousmane Bah, leading to his arrest on November 29, 2018. Independent news outlets reported the suit and Apple told reporters it does not use facial recognition in its stores. The court docket and complaint are publicly available.

Confidence
High (multi-source, primary)
Apple Inc.4 sourcesCourt FilingPublicNov 2018
FI-0359HealthcareHigh
Hallucination

IBM Watson for Oncology provided unsafe cancer treatment recommendations

IBM Watson for Oncology provided clinically unsafe and incorrect treatment recommendations to healthcare providers. The system allegedly suggested dangerous treatments, such as bleeding drugs for patients with severe hemorrhage.

Confidence
Medium (multi-source)
IBM Watson Health2 sourcesSocialPublicJan 2018
FI-0388SaaSHigh
Hallucination

Facebook translation error leads to arrest of Palestinian man

In October 2017 Israeli police arrested and later released a Palestinian man after relying on an automatic translation of his Arabic Facebook post that reportedly rendered a benign caption as a violent phrase in Hebrew. Multiple news outlets reported that police used the platform's translation output when assessing the post. The incident drew attention to risks from automatic translation in law enforcement contexts.

Confidence
Medium (multi-source)
Facebook3 sourcesPressPublicOct 2017
FI-0375Public SectorHigh
Hallucination

Metropolitan Police facial recognition trial at Notting Hill Carnival reports 98 percent error rate

The Metropolitan Police Service deployed live facial recognition technology during the 2017 Notting Hill Carnival. An audit later revealed that the system incorrectly identified the vast majority of potential matches.

Confidence
High (multi-source, primary)
Metropolitan Police Service3 sourcesPrimaryPublicAug 2017
FI-0389Public SectorHigh
Hallucination

Google Translate deemed inadequate for obtaining search consent in US federal court

In the case of United States v. Cruz-Zamora, a federal judge ruled that Google Translate's inaccuracy made it an insufficient tool for officers to obtain unequivocal consent for a warrantless search. This ruling led to the suppression of narcotics seized during the stop.

Confidence
Medium (multi-source)
Google2 sourcesPressPublicJan 2017
FI-0470Public SectorLow
Hallucination

New Zealand passport photo checker rejects applicant's open eyes as closed

In December 2016 an online passport photo checker run by New Zealand's Department of Internal Affairs rejected a photo from Richard Lee, a New Zealander of Asian descent, with the generic error "subject eyes are closed" even though his eyes were open. Major news outlets reported the system later accepted a different photo and the department said shadowing and uneven lighting commonly cause such automatic rejections.

Confidence
Medium (multi-source)
New Zealand Department of Internal Affairs3 sourcesPressPublicDec 2016