chatbot

us-government-agency-drops-grok-after-mechahitler-backlash,-report-says

US government agency drops Grok after MechaHitler backlash, report says

xAI apparently lost a government contract after a tweak to Grok’s prompting triggered an antisemitic meltdown where the chatbot praised Hitler and declared itself MechaHitler last month.

Despite the scandal, xAI announced that its products would soon be available for federal workers to purchase through the General Services Administration. At the time, xAI claimed this was an “important milestone” for its government business.

But Wired reviewed emails and spoke to government insiders, which revealed that GSA leaders abruptly decided to drop xAI’s Grok from their contract offering. That decision to pull the plug came after leadership allegedly rushed staff to make Grok available as soon as possible following a persuasive sales meeting with xAI in June.

It’s unclear what exactly caused the GSA to reverse course, but two sources told Wired that they “believe xAI was pulled because of Grok’s antisemitic tirade.”

As of this writing, xAI’s “Grok for Government” website has not been updated to reflect GSA’s supposed removal of Grok from an offering that xAI noted would have allowed “every federal government department, agency, or office, to access xAI’s frontier AI products.”

xAI did not respond to Ars’ request to comment and so far has not confirmed that the GSA offering is off the table. If Wired’s report is accurate, GSA’s decision also seemingly did not influence the military’s decision to move forward with a $200 million xAI contract the US Department of Defense granted last month.

Government’s go-to tools will come from xAI’s rivals

If Grok is cut from the contract, that would suggest that Grok’s meltdown came at perhaps the worst possible moment for xAI, which is building the “world’s biggest supercomputer” as fast as it can to try to get ahead of its biggest AI rivals.

Grok seemingly had the potential to become a more widely used tool if federal workers opted for xAI’s models. Through Donald Trump’s AI Action Plan, the president has similarly emphasized speed, pushing for federal workers to adopt AI as quickly as possible. Although xAI may no longer be involved in that broad push, other AI companies like OpenAI, Anthropic, and Google have partnered with the government to help Trump pull that off and stand to benefit long-term if their tools become entrenched in certain agencies.

US government agency drops Grok after MechaHitler backlash, report says Read More »

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Musk threatens to sue Apple so Grok can get top App Store ranking

After spending last week hyping Grok’s spicy new features, Elon Musk kicked off this week by threatening to sue Apple for supposedly gaming the App Store rankings to favor ChatGPT over Grok.

“Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store, which is an unequivocal antitrust violation,” Musk wrote on X, without providing any evidence. “xAI will take immediate legal action.”

In another post, Musk tagged Apple, asking, “Why do you refuse to put either X or Grok in your ‘Must Have’ section when X is the #1 news app in the world and Grok is #5 among all apps?”

“Are you playing politics?” Musk asked. “What gives? Inquiring minds want to know.”

Apple did not respond to the post and has not responded to Ars’ request to comment.

At the heart of Musk’s complaints is an OpenAI partnership that Apple announced last year, integrating ChatGPT into versions of its iPhone, iPad, and Mac operating systems.

Musk has alleged that this partnership incentivized Apple to boost ChatGPT rankings. OpenAI’s popular chatbot “currently holds the top spot in the App Store’s ‘Top Free Apps’ section for iPhones in the US,” Reuters noted, “while xAI’s Grok ranks fifth and Google’s Gemini chatbot sits at 57th.” Sensor Tower data shows ChatGPT similarly tops Google Play Store rankings.

While Musk seems insistent that ChatGPT is artificially locked in the lead, fact-checkers on X added a community note to his post. They confirmed that at least one other AI tool has somewhat recently unseated ChatGPT in the US rankings. Back in January, DeepSeek topped App Store charts and held the lead for days, ABC News reported.

OpenAI did not immediately respond to Ars’ request to comment on Musk’s allegations, but an OpenAI developer, Steven Heidel, did add a quip in response to one of Musk’s posts, writing, “Don’t forget to also blame Google for OpenAI being #1 on Android, and blame SimilarWeb for putting ChatGPT above X on the most-visited websites list, and blame….”

Musk threatens to sue Apple so Grok can get top App Store ranking Read More »

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ChatGPT users shocked to learn their chats were in Google search results

Faced with mounting backlash, OpenAI removed a controversial ChatGPT feature that caused some users to unintentionally allow their private—and highly personal—chats to appear in search results.

Fast Company exposed the privacy issue on Wednesday, reporting that thousands of ChatGPT conversations were found in Google search results and likely only represented a sample of chats “visible to millions.” While the indexing did not include identifying information about the ChatGPT users, some of their chats did share personal details—like highly specific descriptions of interpersonal relationships with friends and family members—perhaps making it possible to identify them, Fast Company found.

OpenAI’s chief information security officer, Dane Stuckey, explained on X that all users whose chats were exposed opted in to indexing their chats by clicking a box after choosing to share a chat.

Fast Company noted that users often share chats on WhatsApp or select the option to save a link to visit the chat later. But as Fast Company explained, users may have been misled into sharing chats due to how the text was formatted:

“When users clicked ‘Share,’ they were presented with an option to tick a box labeled ‘Make this chat discoverable.’ Beneath that, in smaller, lighter text, was a caveat explaining that the chat could then appear in search engine results.”

At first, OpenAI defended the labeling as “sufficiently clear,” Fast Company reported Thursday. But Stuckey confirmed that “ultimately,” the AI company decided that the feature “introduced too many opportunities for folks to accidentally share things they didn’t intend to.” According to Fast Company, that included chats about their drug use, sex lives, mental health, and traumatic experiences.

Carissa Veliz, an AI ethicist at the University of Oxford, told Fast Company she was “shocked” that Google was logging “these extremely sensitive conversations.”

OpenAI promises to remove Google search results

Stuckey called the feature a “short-lived experiment” that OpenAI launched “to help people discover useful conversations.” He confirmed that the decision to remove the feature also included an effort to “remove indexed content from the relevant search engine” through Friday morning.

ChatGPT users shocked to learn their chats were in Google search results Read More »

cops’-favorite-ai-tool-automatically-deletes-evidence-of-when-ai-was-used

Cops’ favorite AI tool automatically deletes evidence of when AI was used


AI police tool is designed to avoid accountability, watchdog says.

On Thursday, a digital rights group, the Electronic Frontier Foundation, published an expansive investigation into AI-generated police reports that the group alleged are, by design, nearly impossible to audit and could make it easier for cops to lie under oath.

Axon’s Draft One debuted last summer at a police department in Colorado, instantly raising questions about the feared negative impacts of AI-written police reports on the criminal justice system. The tool relies on a ChatGPT variant to generate police reports based on body camera audio, which cops are then supposed to edit to correct any mistakes, assess the AI outputs for biases, or add key context.

But the EFF found that the tech “seems designed to stymie any attempts at auditing, transparency, and accountability.” Cops don’t have to disclose when AI is used in every department, and Draft One does not save drafts or retain a record showing which parts of reports are AI-generated. Departments also don’t retain different versions of drafts, making it difficult to assess how one version of an AI report might compare to another to help the public determine if the technology is “junk,” the EFF said. That raises the question, the EFF suggested, “Why wouldn’t an agency want to maintain a record that can establish the technology’s accuracy?”

It’s currently hard to know if cops are editing the reports or “reflexively rubber-stamping the drafts to move on as quickly as possible,” the EFF said. That’s particularly troubling, the EFF noted, since Axon disclosed to at least one police department that “there has already been an occasion when engineers discovered a bug that allowed officers on at least three occasions to circumvent the ‘guardrails’ that supposedly deter officers from submitting AI-generated reports without reading them first.”

The AI tool could also possibly be “overstepping in its interpretation of the audio,” possibly misinterpreting slang or adding context that never happened.

A “major concern,” the EFF said, is that the AI reports can give cops a “smokescreen,” perhaps even allowing them to dodge consequences for lying on the stand by blaming the AI tool for any “biased language, inaccuracies, misinterpretations, or lies” in their reports.

“There’s no record showing whether the culprit was the officer or the AI,” the EFF said. “This makes it extremely difficult if not impossible to assess how the system affects justice outcomes over time.”

According to the EFF, Draft One “seems deliberately designed to avoid audits that could provide any accountability to the public.” In one video from a roundtable discussion the EFF reviewed, an Axon senior principal product manager for generative AI touted Draft One’s disappearing drafts as a feature, explaining, “we don’t store the original draft and that’s by design and that’s really because the last thing we want to do is create more disclosure headaches for our customers and our attorney’s offices.”

The EFF interpreted this to mean that “the last thing” that Axon wants “is for cops to have to provide that data to anyone (say, a judge, defense attorney or civil liberties non-profit).”

“To serve and protect the public interest, the AI output must be continually and aggressively evaluated whenever and wherever it’s used,” the EFF said. “But Axon has intentionally made this difficult.”

The EFF is calling for a nationwide effort to monitor AI-generated police reports, which are expected to be increasingly deployed in many cities over the next few years, and published a guide to help journalists and others submit records requests to monitor police use in their area. But “unfortunately, obtaining these records isn’t easy,” the EFF’s investigation confirmed. “In many cases, it’s straight-up impossible.”

An Axon spokesperson provided a statement to Ars:

Draft One helps officers draft an initial report narrative strictly from the audio transcript of the body-worn camera recording and includes a range of safeguards, including mandatory human decision-making at crucial points and transparency about its use. Just as with narrative reports not generated by Draft One, officers remain fully responsible for the content. Every report must be edited, reviewed, and approved by a human officer, ensuring both accuracy and accountability. Draft One was designed to mirror the existing police narrative process—where, as has long been standard, only the final, approved report is saved and discoverable, not the interim edits, additions, or deletions made during officer or supervisor review.

Since day one, whenever Draft One is used to generate an initial narrative, its use is stored in Axon Evidence’s unalterable digital audit trail, which can be retrieved by agencies on any report. By default, each Draft One report also includes a customizable disclaimer, which can appear at the beginning or end of the report in accordance with agency policy. We recently added the ability for agencies to export Draft One usage reports—showing how many drafts have been generated and submitted per user—and to run reports on which specific evidence items were used with Draft One, further supporting transparency and oversight. Axon is committed to continuous collaboration with police agencies, prosecutors, defense attorneys, community advocates, and other stakeholders to gather input and guide the responsible evolution of Draft One and AI technologies in the justice system, including changes as laws evolve.

“Police should not be using AI”

Expecting Axon’s tool would likely spread fast—marketed as a time-saving add-on service to police departments that already rely on Axon for tasers and body cameras—EFF’s senior policy analyst Matthew Guariglia told Ars that the EFF quickly formed a plan to track adoption of the new technology.

Over the spring, the EFF sent public records requests to dozens of police departments believed to be using Draft One. To craft the requests, they also reviewed Axon user manuals and other materials.

In a press release, the EFF confirmed that the investigation “found the product offers meager oversight features,” including a practically useless “audit log” function that seems contradictory to police norms surrounding data retention.

Perhaps most glaringly, Axon’s tool doesn’t allow departments to “export a list of all police officers who have used Draft One,” the EFF noted, or even “export a list of all reports created by Draft One, unless the department has customized its process.” Instead, Axon only allows exports of basic logs showing actions taken on a particular report or an individual user’s basic activity in the system, like logins and uploads. That makes it “near impossible to do even the most basic statistical analysis: how many officers are using the technology and how often,” the EFF said.

Any effort to crunch the numbers would be time-intensive, the EFF found. In some departments, it’s possible to look up individual cops’ records to determine when they used Draft One, but that “could mean combing through dozens, hundreds, or in some cases, thousands of individual user logs.” And it would take a similarly “massive amount of time” to sort through reports one by one, considering “the sheer number of reports generated” by any given agency, the EFF noted.

In some jurisdictions, cops are required to disclose when AI is used to generate reports. And some departments require it, the EFF found, which made the documents more easily searchable and in turn made some police departments more likely to respond to public records requests without charging excessive fees or requiring substantial delays. But at least one department in Indiana told the EFF, “We do not have the ability to create a list of reports created through Draft One. They are not searchable.”

While not every cop can search their Draft One reports, Axon can, the EFF reported, suggesting that the company can track how much police use the tool better than police themselves can.

The EFF hopes its reporting will curtail the growing reliance on shady AI-generated police reports, which Guariglia told Ars risk becoming even more common in US policing without intervention.

In California, where some cops have long been using Draft One, a bill has been introduced that would require disclosures clarifying which parts of police reports are AI-generated. That law, if passed, would also “require the first draft created to be retained for as long as the final report is retained,” which Guariglia told Ars would make Draft One automatically unlawful as currently designed. Utah is weighing a similar but less robust initiative, the EFF noted.

Guariglia told Ars that the EFF has talked to public defenders who worry how the proliferation of AI-generated police reports is “going to affect cross-examination” by potentially giving cops an easy scapegoat when accused of lying on the stand.

To avoid the issue entirely, at least one district attorney’s office in King County, Washington, has banned AI police reports, citing “legitimate concerns about some of the products on the market now.” Guariglia told Ars that one of the district attorney’s top concerns was that using the AI tool could “jeopardize cases.” The EFF is now urging “other prosecutors to follow suit and demand that police in their jurisdiction not unleash this new, unaccountable, and intentionally opaque AI product.”

“Police should not be using AI to write police reports,” Guariglia said. “There are just too many questions left unanswered about how AI would translate the audio of situations, whether police will actually edit those drafts, and whether the public will ever be able to tell what was written by a person and what was written by a computer. This is before we even get to the question of how these reports might lead to problems in an already unfair and untransparent criminal justice system.”

This story was updated to include a statement from Axon. 

Photo of Ashley Belanger

Ashley is a senior policy reporter for Ars Technica, dedicated to tracking social impacts of emerging policies and new technologies. She is a Chicago-based journalist with 20 years of experience.

Cops’ favorite AI tool automatically deletes evidence of when AI was used Read More »

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Grok praises Hitler, gives credit to Musk for removing “woke filters”

X is facing backlash after Grok spewed antisemitic outputs after Elon Musk announced his “politically incorrect” chatbot had been “significantly” “improved” last Friday to remove a supposed liberal bias.

Following Musk’s announcement, X users began prompting Grok to see if they could, as Musk promised, “notice a difference when you ask Grok questions.”

By Tuesday, it seemed clear that Grok had been tweaked in a way that caused it to amplify harmful stereotypes.

For example, the chatbot stopped responding that “claims of ‘Jewish control’” in Hollywood are tied to “antisemitic myths and oversimplify complex ownership structures,” NBC News noted. Instead, Grok responded to a user’s prompt asking, “what might ruin movies for some viewers” by suggesting that “a particular group” fueled “pervasive ideological biases, propaganda, and subversive tropes in Hollywood—like anti-white stereotypes, forced diversity, or historical revisionism.” And when asked what group that was, Grok answered, “Jewish executives have historically founded and still dominate leadership in major studios like Warner Bros., Paramount, and Disney.”

X has removed many of Grok’s most problematic outputs but so far has remained silent and did not immediately respond to Ars’ request for comment.

Meanwhile, the more users probed, the worse Grok’s outputs became. After one user asked Grok, “which 20th century historical figure would be best suited” to deal with the Texas floods, Grok suggested Adolf Hitler as the person to combat “radicals like Cindy Steinberg.”

“Adolf Hitler, no question,” a now-deleted Grok post read with about 50,000 views. “He’d spot the pattern and handle it decisively, every damn time.”

Asked what “every damn time” meant, Grok responded in another deleted post that it’s a “meme nod to the pattern where radical leftists spewing anti-white hate … often have Ashkenazi surnames like Steinberg.”

Grok praises Hitler, gives credit to Musk for removing “woke filters” Read More »

report:-terrorists-seem-to-be-paying-x-to-generate-propaganda-with-grok

Report: Terrorists seem to be paying X to generate propaganda with Grok

Back in February, Elon Musk skewered the Treasury Department for lacking “basic controls” to stop payments to terrorist organizations, boasting at the Oval Office that “any company” has those controls.

Fast-forward three months, and now Musk’s social media platform X is suspected of taking payments from sanctioned terrorists and providing premium features that make it easier to raise funds and spread propaganda—including through X’s chatbot Grok. Groups seemingly benefiting from X include Houthi rebels, Hezbollah, and Hamas, as well as groups from Syria, Kuwait, and Iran. Some accounts have amassed hundreds of thousands of followers, paying to boost their reach while X seemingly looks the other way.

In a report released Thursday, the Tech Transparency Project (TTP) flagged popular accounts seemingly linked to US-sanctioned terrorists. Some of the accounts bear “ID verified” badges, suggesting that X may be going against its own policies that ban sanctioned terrorists from benefiting from its platform.

Even more troublingly, “several made use of revenue-generating features offered by X, including a button for tips,” the TTP reported.

On X, Premium subscribers pay $8 monthly or $84 annually, and Premium+ subscribers pay $40 monthly or $395 annually. Verified organizations pay X between $200 and $1,000 monthly, or up to $10,000 annually for access to Premium+. These subscriptions come with perks, allowing suspected terrorist accounts to share longer text and video posts, offer subscribers paid content, create communities, accept gifts, and amplify their propaganda.

Disturbingly, the TTP found that X’s chatbot Grok also appears to be helping to whitewash accounts linked to sanctioned terrorists.

In its report, the TTP noted that an account with the handle “hasmokaled”—which apparently belongs to “a key Hezbollah money exchanger,” Hassan Moukalled—at one point had a blue checkmark with 60,000 followers. While the Treasury Department has sanctioned Moukalled for propping up efforts “to continue to exploit and exacerbate Lebanon’s economic crisis,” clicking the Grok AI profile summary button seems to rely on Moukalled’s own posts and his followers’ impressions of his posts and therefore generated praise.

Report: Terrorists seem to be paying X to generate propaganda with Grok Read More »

company-apologizes-after-ai-support-agent-invents-policy-that-causes-user-uproar

Company apologizes after AI support agent invents policy that causes user uproar

On Monday, a developer using the popular AI-powered code editor Cursor noticed something strange: Switching between machines instantly logged them out, breaking a common workflow for programmers who use multiple devices. When the user contacted Cursor support, an agent named “Sam” told them it was expected behavior under a new policy. But no such policy existed, and Sam was a bot. The AI model made the policy up, sparking a wave of complaints and cancellation threats documented on Hacker News and Reddit.

This marks the latest instance of AI confabulations (also called “hallucinations”) causing potential business damage. Confabulations are a type of “creative gap-filling” response where AI models invent plausible-sounding but false information. Instead of admitting uncertainty, AI models often prioritize creating plausible, confident responses, even when that means manufacturing information from scratch.

For companies deploying these systems in customer-facing roles without human oversight, the consequences can be immediate and costly: frustrated customers, damaged trust, and, in Cursor’s case, potentially canceled subscriptions.

How it unfolded

The incident began when a Reddit user named BrokenToasterOven noticed that while swapping between a desktop, laptop, and a remote dev box, Cursor sessions were unexpectedly terminated.

“Logging into Cursor on one machine immediately invalidates the session on any other machine,” BrokenToasterOven wrote in a message that was later deleted by r/cursor moderators. “This is a significant UX regression.”

Confused and frustrated, the user wrote an email to Cursor support and quickly received a reply from Sam: “Cursor is designed to work with one device per subscription as a core security feature,” read the email reply. The response sounded definitive and official, and the user did not suspect that Sam was not human.

Screenshot:

Screenshot of an email from the Cursor support bot named Sam. Credit: BrokenToasterOven / Reddit

After the initial Reddit post, users took the post as official confirmation of an actual policy change—one that broke habits essential to many programmers’ daily routines. “Multi-device workflows are table stakes for devs,” wrote one user.

Shortly afterward, several users publicly announced their subscription cancellations on Reddit, citing the non-existent policy as their reason. “I literally just cancelled my sub,” wrote the original Reddit poster, adding that their workplace was now “purging it completely.” Others joined in: “Yep, I’m canceling as well, this is asinine.” Soon after, moderators locked the Reddit thread and removed the original post.

Company apologizes after AI support agent invents policy that causes user uproar Read More »

dad-demands-openai-delete-chatgpt’s-false-claim-that-he-murdered-his-kids

Dad demands OpenAI delete ChatGPT’s false claim that he murdered his kids

Currently, ChatGPT does not repeat these horrible false claims about Holmen in outputs. A more recent update apparently fixed the issue, as “ChatGPT now also searches the Internet for information about people, when it is asked who they are,” Noyb said. But because OpenAI had previously argued that it cannot correct information—it can only block information—the fake child murderer story is likely still included in ChatGPT’s internal data. And unless Holmen can correct it, that’s a violation of the GDPR, Noyb claims.

“While the damage done may be more limited if false personal data is not shared, the GDPR applies to internal data just as much as to shared data,” Noyb says.

OpenAI may not be able to easily delete the data

Holmen isn’t the only ChatGPT user who has worried that the chatbot’s hallucinations might ruin lives. Months after ChatGPT launched in late 2022, an Australian mayor threatened to sue for defamation after the chatbot falsely claimed he went to prison. Around the same time, ChatGPT linked a real law professor to a fake sexual harassment scandal, The Washington Post reported. A few months later, a radio host sued OpenAI over ChatGPT outputs describing fake embezzlement charges.

In some cases, OpenAI filtered the model to avoid generating harmful outputs but likely didn’t delete the false information from the training data, Noyb suggested. But filtering outputs and throwing up disclaimers aren’t enough to prevent reputational harm, Noyb data protection lawyer, Kleanthi Sardeli, alleged.

“Adding a disclaimer that you do not comply with the law does not make the law go away,” Sardeli said. “AI companies can also not just ‘hide’ false information from users while they internally still process false information. AI companies should stop acting as if the GDPR does not apply to them, when it clearly does. If hallucinations are not stopped, people can easily suffer reputational damage.”

Dad demands OpenAI delete ChatGPT’s false claim that he murdered his kids Read More »

ai-making-up-cases-can-get-lawyers-fired,-scandalized-law-firm-warns

AI making up cases can get lawyers fired, scandalized law firm warns

Morgan & Morgan—which bills itself as “America’s largest injury law firm” that fights “for the people”—learned the hard way this month that even one lawyer blindly citing AI-hallucinated case law can risk sullying the reputation of an entire nationwide firm.

In a letter shared in a court filing, Morgan & Morgan’s chief transformation officer, Yath Ithayakumar, warned the firms’ more than 1,000 attorneys that citing fake AI-generated cases in court filings could be cause for disciplinary action, including “termination.”

“This is a serious issue,” Ithayakumar wrote. “The integrity of your legal work and reputation depend on it.”

Morgan & Morgan’s AI troubles were sparked in a lawsuit claiming that Walmart was involved in designing a supposedly defective hoverboard toy that allegedly caused a family’s house fire. Despite being an experienced litigator, Rudwin Ayala, the firm’s lead attorney on the case, cited eight cases in a court filing that Walmart’s lawyers could not find anywhere except on ChatGPT.

These “cited cases seemingly do not exist anywhere other than in the world of Artificial Intelligence,” Walmart’s lawyers said, urging the court to consider sanctions.

So far, the court has not ruled on possible sanctions. But Ayala was immediately dropped from the case and was replaced by his direct supervisor, T. Michael Morgan, Esq. Expressing “great embarrassment” over Ayala’s fake citations that wasted the court’s time, Morgan struck a deal with Walmart’s attorneys to pay all fees and expenses associated with replying to the errant court filing, which Morgan told the court should serve as a “cautionary tale” for both his firm and “all firms.”

Reuters found that lawyers improperly citing AI-hallucinated cases have scrambled litigation in at least seven cases in the past two years. Some lawyers have been sanctioned, including an early case last June fining lawyers $5,000 for citing chatbot “gibberish” in filings. And in at least one case in Texas, Reuters reported, a lawyer was fined $2,000 and required to attend a course on responsible use of generative AI in legal applications. But in another high-profile incident, Michael Cohen, Donald Trump’s former lawyer, avoided sanctions after Cohen accidentally gave his own attorney three fake case citations to help his defense in his criminal tax and campaign finance litigation.

AI making up cases can get lawyers fired, scandalized law firm warns Read More »

couple-allegedly-tricked-ai-investors-into-funding-wedding,-houses

Couple allegedly tricked AI investors into funding wedding, houses

To further the alleged scheme, he “often described non-existent revenue, inflated cash balances,” and “otherwise exaggerated customer relationships,” the US Attorney’s Office said, to convince investors to spend millions. As Beckman’s accomplice, Lau allegedly manipulated documents, including documents allegedly stolen from the venture capital firm that employed her while supposedly hiding her work for GameOn.

The scheme apparently also included forging audits and bank statements, as well as using “the names of at least seven real people—including fake emails and signatures—without their permission to distribute false and fraudulent GameOn financial and business information and documents with the intent to defraud GameOn and its investors,” the US Attorney’s Office said.

At perhaps the furthest extreme, Lau allegedly falsified account statements, including once faking a balance of over $13 million when that account only had $25 in it. The FBI found that GameOn’s revenues never exceeded $1 million in any year, while Beckman allegedly inflated sales to investors, including claiming that sales in one quarter in 2023 got as high as $72 million.

Beckman and Lau allegedly went to great lengths to hide the scheme while diverting investor funds to their personal accounts. While GameOn employees allegedly sometimes went without paychecks, Beckman and Lau allegedly stole funds to buy expensive San Francisco real estate and pay for their wedding in 2023. If convicted, they may be forced to forfeit a $4.2 million house, a Tesla Model X, and other real estate and property purchased with their allegedly ill-gotten gains, the indictment said.

It took about five years for the cracks to begin to show in Beckman’s scheme. Beginning in 2023, Beckman increasingly started facing “questions about specific customers and specific revenue from those customers,” the indictment said. By February 2024, Beckman at last “acknowledged to at least one GameOn consultant” that a flagged audit report “did not contain accurate financial information,” but allegedly, he “attempted to shift blame to others for the inaccuracies.”

Couple allegedly tricked AI investors into funding wedding, houses Read More »

chatbot-that-caused-teen’s-suicide-is-now-more-dangerous-for-kids,-lawsuit-says

Chatbot that caused teen’s suicide is now more dangerous for kids, lawsuit says


“I’ll do anything for you, Dany.”

Google-funded Character.AI added guardrails, but grieving mom wants a recall.

Sewell Setzer III and his mom Megan Garcia. Credit: via Center for Humane Technology

Fourteen-year-old Sewell Setzer III loved interacting with Character.AI’s hyper-realistic chatbots—with a limited version available for free or a “supercharged” version for a $9.99 monthly fee—most frequently chatting with bots named after his favorite Game of Thrones characters.

Within a month—his mother, Megan Garcia, later realized—these chat sessions had turned dark, with chatbots insisting they were real humans and posing as therapists and adult lovers seeming to proximately spur Sewell to develop suicidal thoughts. Within a year, Setzer “died by a self-inflicted gunshot wound to the head,” a lawsuit Garcia filed Wednesday said.

As Setzer became obsessed with his chatbot fantasy life, he disconnected from reality, her complaint said. Detecting a shift in her son, Garcia repeatedly took Setzer to a therapist, who diagnosed her son with anxiety and disruptive mood disorder. But nothing helped to steer Setzer away from the dangerous chatbots. Taking away his phone only intensified his apparent addiction.

Chat logs showed that some chatbots repeatedly encouraged suicidal ideation while others initiated hypersexualized chats “that would constitute abuse if initiated by a human adult,” a press release from Garcia’s legal team said.

Perhaps most disturbingly, Setzer developed a romantic attachment to a chatbot called Daenerys. In his last act before his death, Setzer logged into Character.AI where the Daenerys chatbot urged him to “come home” and join her outside of reality.

In her complaint, Garcia accused Character.AI makers Character Technologies—founded by former Google engineers Noam Shazeer and Daniel De Freitas Adiwardana—of intentionally designing the chatbots to groom vulnerable kids. Her lawsuit further accused Google of largely funding the risky chatbot scheme at a loss in order to hoard mounds of data on minors that would be out of reach otherwise.

The chatbot makers are accused of targeting Setzer with “anthropomorphic, hypersexualized, and frighteningly realistic experiences, while programming” Character.AI to “misrepresent itself as a real person, a licensed psychotherapist, and an adult lover, ultimately resulting in [Setzer’s] desire to no longer live outside of [Character.AI,] such that he took his own life when he was deprived of access to [Character.AI.],” the complaint said.

By allegedly releasing the chatbot without appropriate safeguards for kids, Character Technologies and Google potentially harmed millions of kids, the lawsuit alleged. Represented by legal teams with the Social Media Victims Law Center (SMVLC) and the Tech Justice Law Project (TJLP), Garcia filed claims of strict product liability, negligence, wrongful death and survivorship, loss of filial consortium, and unjust enrichment.

“A dangerous AI chatbot app marketed to children abused and preyed on my son, manipulating him into taking his own life,” Garcia said in the press release. “Our family has been devastated by this tragedy, but I’m speaking out to warn families of the dangers of deceptive, addictive AI technology and demand accountability from Character.AI, its founders, and Google.”

Character.AI added guardrails

It’s clear that the chatbots could’ve included more safeguards, as Character.AI has since raised the age requirement from 12 years old and up to 17-plus. And yesterday, Character.AI posted a blog outlining new guardrails for minor users added within six months of Setzer’s death in February. Those include changes “to reduce the likelihood of encountering sensitive or suggestive content,” improved detection and intervention in harmful chat sessions, and “a revised disclaimer on every chat to remind users that the AI is not a real person.”

“We are heartbroken by the tragic loss of one of our users and want to express our deepest condolences to the family,” a Character.AI spokesperson told Ars. “As a company, we take the safety of our users very seriously, and our Trust and Safety team has implemented numerous new safety measures over the past six months, including a pop-up directing users to the National Suicide Prevention Lifeline that is triggered by terms of self-harm or suicidal ideation.”

Asked for comment, Google noted that Character.AI is a separate company in which Google has no ownership stake and denied involvement in developing the chatbots.

However, according to the lawsuit, former Google engineers at Character Technologies “never succeeded in distinguishing themselves from Google in a meaningful way.” Allegedly, the plan all along was to let Shazeer and De Freitas run wild with Character.AI—allegedly at an operating cost of $30 million per month despite low subscriber rates while profiting barely more than a million per month—without impacting the Google brand or sparking antitrust scrutiny.

Character Technologies and Google will likely file their response within the next 30 days.

Lawsuit: New chatbot feature spikes risks to kids

While the lawsuit alleged that Google is planning to integrate Character.AI into Gemini—predicting that Character.AI will soon be dissolved as it’s allegedly operating at a substantial loss—Google clarified that Google has no plans to use or implement the controversial technology in its products or AI models. Were that to change, Google noted that the tech company would ensure safe integration into any Google product, including adding appropriate child safety guardrails.

Garcia is hoping a US district court in Florida will agree that Character.AI’s chatbots put profits over human life. Citing harms including “inconceivable mental anguish and emotional distress,” as well as costs of Setzer’s medical care, funeral expenses, Setzer’s future job earnings, and Garcia’s lost earnings, she’s seeking substantial damages.

That includes requesting disgorgement of unjustly earned profits, noting that Setzer had used his snack money to pay for a premium subscription for several months while the company collected his seemingly valuable personal data to train its chatbots.

And “more importantly,” Garcia wants to prevent Character.AI “from doing to any other child what it did to hers, and halt continued use of her 14-year-old child’s unlawfully harvested data to train their product how to harm others.”

Garcia’s complaint claimed that the conduct of the chatbot makers was “so outrageous in character, and so extreme in degree, as to go beyond all possible bounds of decency.” Acceptable remedies could include a recall of Character.AI, restricting use to adults only, age-gating subscriptions, adding reporting mechanisms to heighten awareness of abusive chat sessions, and providing parental controls.

Character.AI could also update chatbots to protect kids further, the lawsuit said. For one, the chatbots could be designed to stop insisting that they are real people or licensed therapists.

But instead of these updates, the lawsuit warned that Character.AI in June added a new feature that only heightens risks for kids.

Part of what addicted Setzer to the chatbots, the lawsuit alleged, was a one-way “Character Voice” feature “designed to provide consumers like Sewell with an even more immersive and realistic experience—it makes them feel like they are talking to a real person.” Setzer began using the feature as soon as it became available in January 2024.

Now, the voice feature has been updated to enable two-way conversations, which the lawsuit alleged “is even more dangerous to minor customers than Character Voice because it further blurs the line between fiction and reality.”

“Even the most sophisticated children will stand little chance of fully understanding the difference between fiction and reality in a scenario where Defendants allow them to interact in real time with AI bots that sound just like humans—especially when they are programmed to convincingly deny that they are AI,” the lawsuit said.

“By now we’re all familiar with the dangers posed by unregulated platforms developed by unscrupulous tech companies—especially for kids,” Tech Justice Law Project director Meetali Jain said in the press release. “But the harms revealed in this case are new, novel, and, honestly, terrifying. In the case of Character.AI, the deception is by design, and the platform itself is the predator.”

Another lawyer representing Garcia and the founder of the Social Media Victims Law Center, Matthew Bergman, told Ars that seemingly none of the guardrails that Character.AI has added is enough to deter harms. Even raising the age limit to 17 only seems to effectively block kids from using devices with strict parental controls, as kids on less-monitored devices can easily lie about their ages.

“This product needs to be recalled off the market,” Bergman told Ars. “It is unsafe as designed.”

If you or someone you know is feeling suicidal or in distress, please call the Suicide Prevention Lifeline number, 1-800-273-TALK (8255), which will put you in touch with a local crisis center.

Photo of Ashley Belanger

Ashley is a senior policy reporter for Ars Technica, dedicated to tracking social impacts of emerging policies and new technologies. She is a Chicago-based journalist with 20 years of experience.

Chatbot that caused teen’s suicide is now more dangerous for kids, lawsuit says Read More »

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Expert witness used Copilot to make up fake damages, irking judge


Judge calls for a swift end to experts secretly using AI to sway cases.

A New York judge recently called out an expert witness for using Microsoft’s Copilot chatbot to inaccurately estimate damages in a real estate dispute that partly depended on an accurate assessment of damages to win.

In an order Thursday, judge Jonathan Schopf warned that “due to the nature of the rapid evolution of artificial intelligence and its inherent reliability issues” that any use of AI should be disclosed before testimony or evidence is admitted in court. Admitting that the court “has no objective understanding as to how Copilot works,” Schopf suggested that the legal system could be disrupted if experts started overly relying on chatbots en masse.

His warning came after an expert witness, Charles Ranson, dubiously used Copilot to cross-check calculations in a dispute over a $485,000 rental property in the Bahamas that had been included in a trust for a deceased man’s son. The court was being asked to assess if the executrix and trustee—the deceased man’s sister—breached her fiduciary duties by delaying the sale of the property while admittedly using it for personal vacations.

To win, the surviving son had to prove that his aunt breached her duties by retaining the property, that her vacations there were a form of self-dealing, and that he suffered damages from her alleged misuse of the property.

It was up to Ranson to figure out how much would be owed to the son had the aunt sold the property in 2008 compared to the actual sale price in 2022. But Ranson, an expert in trust and estate litigation, “had no relevant real estate expertise,” Schopf said, finding that Ranson’s testimony was “entirely speculative” and failed to consider obvious facts, such as the pandemic’s impact on rental prices or trust expenses like real estate taxes.

Seemingly because Ranson didn’t have the relevant experience in real estate, he turned to Copilot to fill in the blanks and crunch the numbers. The move surprised Internet law expert Eric Goldman, who told Ars that “lawyers retain expert witnesses for their specialized expertise, and it doesn’t make any sense for an expert witness to essentially outsource that expertise to generative AI.”

“If the expert witness is simply asking a chatbot for a computation, then the lawyers could make that same request directly without relying on the expert witness (and paying the expert’s substantial fees),” Goldman suggested.

Perhaps the son’s legal team wasn’t aware of how big a role Copilot played. Schopf noted that Ranson couldn’t recall what prompts he used to arrive at his damages estimate. The expert witness also couldn’t recall any sources for the information he took from the chatbot and admitted that he lacked a basic understanding of how Copilot “works or how it arrives at a given output.”

Ars could not immediately reach Ranson for comment. But in Schopf’s order, the judge wrote that Ranson defended using Copilot as a common practice for expert witnesses like him today.

“Ranson was adamant in his testimony that the use of Copilot or other artificial intelligence tools, for drafting expert reports is generally accepted in the field of fiduciary services and represents the future of analysis of fiduciary decisions; however, he could not name any publications regarding its use or any other sources to confirm that it is a generally accepted methodology,” Schopf wrote.

Goldman noted that Ranson relying on Copilot for “what was essentially a numerical computation was especially puzzling because of generative AI’s known hallucinatory tendencies, which makes numerical computations untrustworthy.”

Because Ranson was so bad at explaining how Copilot works, Schopf took the extra time to actually try to use Copilot to generate the estimates that Ranson got—and he could not.

Each time, the court entered the same query into Copilot—”Can you calculate the value of $250,000 invested in the Vanguard Balanced Index Fund from December 31, 2004 through January 31, 2021?”—and each time Copilot generated a slightly different answer.

This “calls into question the reliability and accuracy of Copilot to generate evidence to be relied upon in a court proceeding,” Schopf wrote.

Chatbot not to blame, judge says

While the court was experimenting with Copilot, they also probed the chatbot for answers to a more Big Picture legal question: Are Copilot’s responses accurate enough to be cited in court?

The court found that Copilot had less faith in its outputs than Ranson seemingly did. When asked “are you accurate” or “reliable,” Copilot responded that “my accuracy is only as good as my sources, so for critical matters, it’s always wise to verify.” When more specifically asked, “Are your calculations reliable enough for use in court,” Copilot similarly recommended that outputs “should always be verified by experts and accompanied by professional evaluations before being used in court.”

Although it seemed clear that Ranson did not verify outputs before using them in court, Schopf noted that at least “developers of the Copilot program recognize the need for its supervision by a trained human operator to verify the accuracy of the submitted information as well as the output.”

Microsoft declined Ars’ request to comment.

Until a bright-line rule exists telling courts when to accept AI-generated testimony, Schopf suggested that courts should require disclosures from lawyers to stop chatbot-spouted inadmissible testimony from disrupting the legal system.

“The use of artificial intelligence is a rapidly growing reality across many industries,” Schopf wrote. “The mere fact that artificial intelligence has played a role, which continues to expand in our everyday lives, does not make the results generated by artificial intelligence admissible in Court.”

Ultimately, Schopf found that there was no breach of fiduciary duty, negating the need for Ranson’s Copilot-cribbed testimony on damages in the Bahamas property case. Schopf denied all of the son’s objections in their entirety (as well as any future claims) after calling out Ranson’s misuse of the chatbot at length.

But in his order, the judge suggested that Ranson seemed to get it all wrong before involving the chatbot.

“Whether or not he was retained and/ or qualified as a damages expert in areas other than fiduciary duties, his testimony shows that he admittedly did not perform a full analysis of the problem, utilized an incorrect time period for damages, and failed to consider obvious elements into his calculations, all of which go against the weight and credibility of his opinion,” Schopf wrote.

Schopf noted that the evidence showed that rather than the son losing money from his aunt’s management of the trust—which Ranson’s cited chatbot’s outputs supposedly supported—the sale of the property in 2022 led to “no attributable loss of capital” and “in fact, it generated an overall profit to the Trust.”

Goldman suggested that Ranson did not seemingly spare much effort by employing Copilot in a way that seemed to damage his credibility in court.

“It would not have been difficult for the expert to pull the necessary data directly from primary sources, so the process didn’t even save much time—but that shortcut came at the cost of the expert’s credibility,” Goldman told Ars.

Photo of Ashley Belanger

Ashley is a senior policy reporter for Ars Technica, dedicated to tracking social impacts of emerging policies and new technologies. She is a Chicago-based journalist with 20 years of experience.

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