California community college districts are spending millions of taxpayer dollars on AI chatbots from vendors like Gravyty and Gecko - ostensibly to help students navigate admissions, financial aid, and campus services. A CalMatters investigation found the bots routinely serve up inaccurate or flat-out wrong answers instead. Three districts reported annual chatbot costs ranging from $151,000 to nearly half a million dollars. At Fresno City College, the student government vice president said her school's mascot-branded chatbot repeatedly botched basic campus questions. The OECD found it noteworthy enough to log in its AI Incidents and Hazards Monitor.

A security researcher found 16 vulnerabilities - six critical - in an EdTech app featured on Lovable's showcase page, which had over 100,000 views and real users from UC Berkeley, UC Davis, and universities across Europe, Africa, and Asia. The AI-generated authentication logic was backwards, blocking logged-in users while granting anonymous visitors full access. 18,697 user records including names, emails, and roles were accessible without authentication, along with the ability to modify student grades, delete accounts, and send bulk emails. Lovable initially closed the researcher's support ticket without response.

In January 2024, Duolingo cut roughly 10% of its contract workforce - primarily content translators and writers who created language-learning exercises - as the company shifted to using GPT-4 and other AI tools for content generation. CEO Luis von Ahn later posted an internal "AI-first" memo on LinkedIn describing a strategy to gradually replace contractor work with AI and only hire when teams could not automate further. The memo drew hundreds of critical comments from users and language professionals. Von Ahn later admitted the memo "did not give enough context" and clarified that full-time employees were not being replaced, though user complaints about declining content quality persisted.

On August 9, 2023, the EEOC's first AI-related discrimination lawsuit reached a settlement. iTutorGroup, a company providing English-language tutoring services to students in China via US-based remote tutors, had programmed its applicant screening software to automatically reject female applicants over 55 and male applicants over 60. Over 200 qualified US applicants were rejected because of their age. The company agreed to pay $365,000, adopt a new anti-discrimination policy, provide training to hiring staff, and submit to EEOC compliance monitoring for at least five years. EEOC Chair Charlotte Burrows called AI a "new civil rights frontier."