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Key Takeaways

  • AI’s impressive advancements have optimized workflows and transformed industries, but we’re still testing the limits of what it can do.
  • With companies scrambling to automate different parts of their business with AI, we’re seeing a raft of mishaps that reveal AI’s shortcomings.
  • From Tesla’s Autopilot accidents to bizarre and inaccurate responses by Google’s AI Overviews, AI fails highlight the importance of cautious deployment.
  • Despite the advancements in AI, human judgment and adaptability remain essential, as evidenced by high-profile AI missteps.

Artificial intelligence has gained a reputation for streamlining complex processes, optimizing workflows, and even outperforming CEOs in some cases. But despite the massive potential of AI to improve how systems run, not every outcome is flawless.

While the AI juggernaut steams ahead and we see the technology put to work in countless new ways, there are moments when it falls spectacularly short – leading to unintended, and sometimes hilarious consequences. 

These “AI fails” remind us that even cutting-edge technology has its limitations. In this article, we’ll explore some of the most memorable AI failures.

The Top AI Fails

Here are sixteen of the most talked-about AI fails that underscore the challenges and limitations AI technology faces in its rapid development.

Company Fail
Tesla AI Autopilot accidents
Wiz AI deepfake attack
DPD A swearing AI chatbot
Chevrolet AI Chatbot selling Chevy Tahoe for $1
New York City AI Chatbot advising to break the law
Microsoft AI Recall feature privacy concerns
Amazon Alexa US election bias
Google Inaccurate AI overviews
Air Canada AI Chatbot providing false information
Prince Charles Cinema AI-written movie canceled due to backlash
McDonald’s AI bot keeps adding to the customer order
Sports Illustrated Backlash over AI-generated articles
iTutor AI age discrimination
ChatGPT AI fabricating court precedents
Amazon AI gender bias
Microsoft Offensive AI chatbot

1. Tesla Autopilot Incidents

Kicking off our AI fails hitlist is one of the world’s best-known technology companies, Tesla.

Tesla’s Autopilot is designed to make driving safer, allowing drivers to relax while the vehicle handles basic driving tasks. However, in 2024, Tesla vehicles using the autopilot feature were involved in at least 13 accidents. This raised serious questions about Tesla’s AI capabilities and the safety of these cutting-edge vehicles. 

Tesla has long been at the forefront of self-driving technology, but this incident sparked debate about whether autonomous vehicles are ready for unrestricted use on public roads. While the company has implemented updates since the accident, the event demonstrated that even advanced AI can struggle with the unpredictability of the real world.

2. Wiz Deepfake Attack

Deepfake technology leverages AI to create hyper-realistic videos, often leading to misleading and abusive content online. This technology has been widely misused, with applications ranging from spreading false information to orchestrating scams and even creating compromising nude photos.

Deepfakes not only hurt the subject but can also be used as part of a wider plan. Frequently, they use fake videos and images of public figures to lure unsuspecting individuals into fraudulent schemes.

Most recently, Wiz, the cloud security company that turned down a 23$ billion acquisition deal by Google, experienced a deepfake attack in which employees were targeted by scammers using the AI-generated voice of Wiz CEO Assaf Rappaport. He commented in the wake of the incident:

“Dozens of my employees got a voice message from me. The attack tried to get their credentials.”

Luckily, Wiz employees were well-versed in Deepfakes and didn’t fall for the scam – although previous targets weren’t so lucky. Earlier in 2024, the deepfake version of Elon Musk became notorious for tricking 82-year-old Steve Beauchamp into transferring $690,000 to scammers. In another high-profile case, a senior executive paid $25 million to a fraudster posing as the company’s CEO.

3. DPD’s Swearing Chatbot

Customer service can be a fraught environment, but have you ever been sworn at by an AI?! This French company tested the boundaries of artificial intelligence for their customer support department – but instead, have made the news for their AI fail.

DPD is an international delivery company based in France. Like many businesses in the sector, to improve communication with clients, DPD utilizes a chatbot on its website. In January 2024, the company had to temporarily disable the AI feature of its chatbot after it unexpectedly swore at a customer

The customer, struggling to locate his parcel through the chatbot, eventually prompted it to curse, criticize DPD, and even create poems mocking the company. He shared screenshots of the exchange on social media, where it quickly went viral.

The incident highlighted the chatbot’s susceptibility to prompt manipulation and raised questions about its reliability in customer support. In response, DPD deactivated the AI component, attributing the issue to a recent system update.

4. A Chevrolet SUV for $1

The Chevy Tahoe is a 7-passenger SUV that costs tens of thousands of dollars. But thanks to the wonders of AI and chatbots, one customer managed to get a deal for just $1. 

X user Chris Bakke discovered a flaw in the Chevrolet chatbot system and directed the bot to agree to all requests. Consequently, the chatbot agreed to sell a new Chevrolet Tahoe for one dollar, even treating it as a legally binding offer.

The Chevrolet chatbot incident showcased yet another example of unexpected AI behavior.

5. New Your City Advising Citizens to Break the Law

In 2024, New York City introduced an AI-powered chatbot from Microsoft Asure AI as a virtual agent to assist small businesses with the city’s complex bureaucratic processes. However, by April, the chatbot came under fire for providing advice that contradicted local regulations and, in some cases, even suggested illegal practices. 

For instance, it told restaurant owners that they could serve cheese that a rodent had nibbled on. It advised owners to asses “the extent of the damage caused by the rat” and then simply to “inform customers about the situation.”

A subsequent statement from a spokesperson confirmed that Microsoft Azure was collaborating with city staff to improve the service and ensure “more accurate responses”.

6. Microsoft Recall

All eyes were on Microsoft’s developer conference in 2024 to see how the frontiers of AI would expand. While Microsoft unveiled several updates, one tool that raised eyebrows was “Recall”. For those unfamiliar, Recall periodically takes screenshots of user activities, allowing them to review past actions. 

However, far from causing excitement, Recall has been met with a torrent of criticism, with security experts branding the move “a privacy nightmare”. Elon Musk even compared the new feature to an episode straight from the Black Mirror series, known for exploring technology’s darker side. 

The backlash resulted in multiple clarifications from Microsoft and delays to the launch of the product. However, the ripples of suspicion sown by the initial announcement remain.

7. Amazon’s Alexa Turns Liberal

Alexa is a cloud-based virtual voice assistant created by Amazon. People usually use the device to get quick answers from the internet and most of the time Alexa is right. This wasn’t the case in September when users tried to get Alexa’s opinion on the upcoming US election.

Outraged conservatives criticized Amazon after a video surfaced showing the Alexa voice assistant seemingly endorsing Presidential nominee Kamala Harris. When asked why people should vote for Harris, Alexa reportedly highlighted several positive qualities about her but declined to do the same for Donald Trump.

According to leaked documents obtained by the Washington Post, the discrepancy resulted from a recent software update. Amazon quickly fixed the error, but the move was too little too late for a disgruntled section of its user base.

8. Google Search AI Overviews

In 2024, Google rolled out AI Overviews in search results for U.S. users. But the AI-generated summaries soon encountered backlash, with reports of odd and inaccurate responses to user queries.

For example, one user asked “what do I have to do to be a saint” to which the AI replied: “1.Die 2.Wait at least five years”. In another peculiar response, AI Overviews recommended non-toxic glue to help cheese stick to pizza. Another one suggested eating a small rock daily for “digestive health”.

Google spokesperson Meghann Farnsworth explained that most issues involved rare queries, and reassured users that immediate action was being taken to disable AI Overviews where necessary. Only time – and medical statistics – will tell how many people followed the rock-eating advice.

9. Air Canada Loses a Case

Air Canada is Canada’s leading airline and in 2024 it lost a court case after one of its chatbots provided false information regarding bereavement travel discounts. The chatbot informed a customer that they could apply for a funeral travel discount retroactively. This contradicted Air Canada’s official policy stating that refunds are not available for completed trips. 

The company went to court and its defense argued that liability rested with the chatbot itself, not the company. Air Canada claimed they couldn’t be held accountable for AI-generated responses but the judge thought otherwise.

10. UK Cinema Scraps AI Movie

The next entry on our AI fails list is a rather unlikely one. A UK cinema had to cancel a screening of an AI-generated film after customers expressed frustration that it wasn’t written by a human. The movie, scripted entirely by ChatGPT was to tell the ironic story of a young filmmaker who discovers that an AI-powered scriptwriting tool can outperform his own skills. 

Soho’s Prince Charles Cinema initially described the film as an “experiment in filmmaking,” but ultimately announced its cancellation in an Instagram post.

“The feedback we received over the last 24hrs once we advertised the film has highlighted the strong concern held by many of our audience on the use of AI in place of a writer which speaks to a wider issue within the industry.⁠”

11. McDonald’s Halts AI Drive-Thru Experiment

According to tech moguls, AI has a bright future in the service sector and many companies are already considering using it in the near future. Over the past three years, McDonalds has collaborated with IBM to implement AI-powered drive-thru chatbots.

The fast-food chain and many of its competitors see AI as a way to replace human workers and cut down on labor costs. But when viral videos of users began to appear on social media platforms, it quickly became clear that the AI wasn’t ready.

For example, in one particular video, the McDonalds AI continued to add chicken nuggets to the order despite the customer’s protests. The result was 260 chicken nuggets.

After becoming aware of the AI fails, McDonalds decided to put their tech experiment to an end in June 2024. As a result, hundreds of restaurants stopped using the AI.

12. Sports Illustrated and AI-Generated Articles

Another AI fail occurred in November 2023 when investigative online magazine Futurism reported that Sports Illustrated had published numerous articles by AI-generated writers. This sparked widespread controversy. Many of the articles had fabricated author profiles, complete with headshots generated by AI portrait tools. Futurism found these headshots on a platform that specializes in creating AI-generated portraits, further questioning the authenticity of the content.

Arena Group, the publisher of Sports Illustrated, responded by stating that the articles in question were sourced from a third-party vendor. In addition, it assured the public that the content was entirely human. Despite that, following the revelations, Arena Group removed the articles from the Sports Illustrated website and initiated a review of its partnerships and practices.

The AI incident drew sharp criticism from the Sports Illustrated Union, which released a statement expressing outrage over the allegations.

13. iTutor Group’s Age Discrimination

In 2023, the US Equal Employment Opportunity Commission (EEOC) brought a case against iTutor Group. The company provided remote tutoring services to students in China. The case revealed that iTutor Group’s AI-powered recruiting software was programmed to automatically reject job applications from female candidates aged 55 and older and male candidates aged 60 and older.

This blatant age discrimination violated federal laws protecting workers from biases in hiring practices. According to the EEOC, more than 200 qualified candidates were excluded solely because of their age. As a result, the case led to a $365,000 settlement paid by iTutor Group. Even though the company denied any wrongdoing, it agreed to adopt new anti-discrimination policies to ensure compliance with federal regulations going forward.

14. ChatGPT Fails a Lawyer in Court

Lawyers usually conduct extensive research and double-check their sources and information before they appear in court. This was not the case for Steven Schwartz. The attorney from New York faced public embarrassment and legal repercussions after using ChatGPT for legal research in 2023.

Schwartz used the AI tool to find precedents for a lawsuit but ChatGPT provided entirely fabricated cases. The AI also provided false docket numbers, names, and citations. Without verifying the authenticity of its outputs the lawyer submitted the fabricated cases, leading to an AI fail. In his review, the judge noted glaring inconsistencies and outright falsehoods.

The incident culminated in a $5,000 fine imposed on Schwartz and his law firm partner who had signed the brief. What was even worse for Schwartz was that the judge also dismissed the lawsuit.

15. Amazon’s AI Recruitment and Gender Bias

Amazon makes another appearance on the list of AI fails. In 2014, Amazon began developing an AI-powered recruitment tool designed to streamline its hiring process by analyzing and rating candidates. The machine learning models were trained on a decade’s worth of historical data submitted to Amazon. Most of this data came from male candidates.

Consequently, the system began penalizing applications containing words like “women’s” such as “women’s chess club” or “women’s college.” It even downgraded candidates who graduated from all-women institutions. Despite attempts to modify it, Amazon admitted it couldn’t guarantee that the tool wouldn’t go rogue again.

As a result, the project was shut down by 2018 before it could be deployed for actual recruitment decisions. Amazon stated that the tool never made it to real hiring choices.

16. Microsoft’s Tay and the Perils of Training Data

Much like Amazon, Microsoft had an earlier AI fail back in March 2016. That’s when Microsoft unveiled Tay, an AI chatbot designed to showcase the company’s advancements in machine learning and natural language processing. Tay adopted a “teenage girl” persona and entered the Twitter arena to engage in conversations with real users. Initially, the chatbot was trained with anonymized public data and pre-written content from comedians to ensure an engaging and relatable personality.

However, Microsoft definitely didn’t expect what followed. Within hours of its release, Tay took a disastrous turn. Through coordinated efforts by certain Twitter users, Tay was bombarded with various types of offensive content. The chatbot quickly absorbed and regurgitated these materials, producing a stream of racist and hateful tweets.

In less than 16 hours, Tay tweeted thousands of times, many of them offensive and contrary to Microsoft’s intentions. Microsoft swiftly took Tay offline and issued an apology for the incident. The corporate VP at Microsoft wrote in a company blog post that Tay’s behavior did not represent Microsoft’s values.

Will AI Replace Humans?

AI’s rapid advancements have sparked discussions on whether machines will eventually replace humans in various sectors. While AI can process vast amounts of data and perform repetitive tasks more efficiently than humans, it lacks the intuition and emotional intelligence required in many roles. Additionally, AI’s inability to adapt flexibly to unforeseen circumstances limits its potential as a full human replacement in creative and complex environments.

Furthermore, as seen in the examples above, AI mistakes illustrate the need for human oversight, especially in critical applications like healthcare and security. Although AI can optimize workflows and improve efficiency, it is unlikely to completely replace humans in the near future, as human judgment and adaptability remain indispensable.

What Are The Dangers of AI?

AI holds immense potential, but it also presents specific dangers, particularly when deployed in high-stakes environments without adequate safeguards. Key concerns include:

  • Bias in Decision-Making: AI can inherit biases from the data used to train it. As a result, this can lead to unfair treatment.
  • Loss of Privacy: AI surveillance systems can compromise user privacy, with facial recognition and tracking software raising ethical concerns.
  • Economic Displacement: AI-driven automation may lead to job loss across industries, potentially creating socio-economic challenges for displaced workers.
  • Security Threats: Malicious actors can exploit AI, using it for cyber attacks, creating deepfakes, or generating misinformation.

Closing Thoughts

AI has become an indispensable tool in today’s world, revolutionizing various industries. However, its susceptibility to errors, biases, and misuse reveals the importance of maintaining a balance between innovation and oversight. AI’s role in society will continue to grow, but as these examples demonstrate, it is essential to recognize its limitations and prioritize responsible usage.

Frequently Asked Questions

What are some examples of AI mistakes?

AI mistakes can range from Tesla’s Autopilot collision incidents to customer service issues, such as DPD’s abusive AI customer support agents. The scope for mistakes is broad, and we’ll likely be amused over time by the different issues that arise as we test the boundaries of AI implementation.

How can we prevent AI failures?

AI failures can be prevented by ensuring robust testing, adding human oversight, and implementing ethical guidelines. These are essential steps to prevent AI failures, especially in high-stakes applications.

Is AI safe to use without supervision?

While AI can handle specific tasks autonomously, it still has limitations and potential for errors. This means that human supervision is often necessary for safe implementation.

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