How to avoid business mishaps when implementing AI?

Business mishaps in AI can have serious consequences for companies, so you need to test machine learning systems very carefully before bringing them to market. Otherwise, large investments in new technologies can end in a major financial and reputational disaster.

So how do you avoid business mishaps when implementing artificial intelligence? While the first piece of advice may seem too simple to work, it is: “Pay attention to data quality!”

The second piece of advice concerns extensive testing in a closed environment before releasing the tool to the public. You should not only test the technical performance of the tool but also verify its:

  • ethical compliance — the goal of the tests is to reduce the bias and stereotypes reproduced by AI,
  • legal compliance — verifying that the data used by AI tools, as well as the content they generate, comply with the country’s laws.

Even the giants in the field of artificial intelligence are not following this advice today, releasing chatbots into the world labeled as “early experiments” or “research projects.” However, as the technology matures and laws governing the use of artificial intelligence come into effect, these issues will become more pressing.

Google Photos

The list of business mishaps related to the use of artificial intelligence begins with a case from 2015. That’s when the Google Photos app, which used an early version of artificial intelligence for image recognition (computer vision), incorrectly labeled photos of black people as photos of gorillas. This business mishaps happened because the training data set used to teach the algorithm contained too few photos of black people.

What’s more, Google had a similar problem with a Nest smart home camera, which misidentified some dark-skinned people as animals. These incidents show that computer vision systems still have trouble recognizing the characteristics of different races.

Business mishaps: Age discrimination

In 2023, iTutor Group agreed to pay $365,000 to settle a lawsuit over the use of discriminatory recruiting software. The software was found to have automatically rejected female candidates over the age of 55 and candidates over the age of 60, without considering their experience or qualifications.

Amazon failed similarly business mishaps. Back in 2014, the company was working on AI to help with the hiring process. The system struggled to evaluate female candidates’ resumes because it was learning from data that included mostly documents submitted by men. As a result, Amazon abandoned the project to implement artificial intelligence in the process.

These cases show that automating the recruitment process carries the risk of perpetuating bias and treating candidates unfairly.

business mishaps

Source: DALL·E 3, prompt: Marta M. Kania (

ChatGPT invents false court precedents

Another case is very contemporary. In 2023, lawyer Steven A. Schwartz used ChatGPT to find past legal cases for a lawsuit against the airline Avianca. However, it turned out that at least six of the cases provided by AI were false – they contained incorrect names, case numbers, and citations.

This happened because Large Language Models (LLM) hallucinate, i.e. they create probable answers when they can’t find the right facts. Therefore it is necessary to check their answers every time. And Schwartz skipped this step. That’s why the judge fined him $5,000 for “gross negligence”.

Business mishaps: Apple Watch which doesn’t work properly on people with darker skin

According to a 2021 class action lawsuit, the blood oxygen app on Apple Watch does not work properly for people with darker skin tones. Apple asserts that it has tested the app on a “wide range of skin types and tones,” but critics say the technology devices are still not designed with dark-skinned people in mind.

business mishaps

Source: DALL·E 3, prompt: Marta M. Kania (

Zillow in real estate

Zillow, a real estate company, launched Zillow Offers Zillow, a program to buy homes and quickly resell them, in 2018. CNN reported that Zillow had bought 27,000 homes since its launch in April 2018, but had only sold 17,000 by the end of September 2021. Zillow said the business mishap was caused by its use of artificial intelligence. The algorithm incorrectly predicted home prices, causing Zillow to overpay for purchases. Although the company immediately shut down the program, it had to lay off 25 percent of its staff. By unintentionally buying homes at prices higher than current estimates of future sale prices, the company recorded a $304 million loss.

Microsoft’s racist chatbot

In 2016, Microsoft released an experimental AI chatbot called Tay. It was supposed to learn by interacting with Twitter (now X) users. Within 16 hours, Tay “learned” to post offensive, racist, and sexist tweets. Twitter users deliberately provoked the bot, which did not have the proper safety mechanisms used in chatbots today, such as ChatGPT, Microsoft Copilot, and Google Bard. Microsoft quickly disabled the bot and apologized for the incident, but Tay is one of Microsoft’s bigger business mishaps.

A chatbot mishap also happened to Google, which released a bot named Meena in 2020. Meta (formerly Facebook) also failed to avoid a similar mistake. In August 2022, it launched a new AI chatbot called BlenderBot 3, which was designed to chat with people and learn from those interactions.

Within days of its release, there were reports of the chatbot making offensive, racist, and factually incorrect statements in conversations. For example, it claimed that Donald Trump won the 2020 U.S. election, spread anti-Semitic conspiracy theories, and criticized Facebook.

business mishaps

If you like our content, join our busy bees community on Facebook, Twitter, LinkedIn, Instagram, YouTube, Pinterest, TikTok.

6 biggest business mishaps caused by AI | AI in business #58 robert whitney avatar 1background

Author: Robert Whitney

JavaScript expert and instructor who coaches IT departments. His main goal is to up-level team productivity by teaching others how to effectively cooperate while coding.

AI in business:

  1. Threats and opportunities of AI in business (part 1)
  2. Threats and opportunities of AI in business (part 2)
  3. AI applications in business - overview
  4. AI-assisted text chatbots
  5. Business NLP today and tomorrow
  6. The role of AI in business decision-making
  7. Scheduling social media posts. How can AI help?
  8. Automated social media posts
  9. New services and products operating with AI
  10. What are the weaknesses of my business idea? A brainstorming session with ChatGPT
  11. Using ChatGPT in business
  12. Synthetic actors. Top 3 AI video generators
  13. 3 useful AI graphic design tools. Generative AI in business
  14. 3 awesome AI writers you must try out today
  15. Exploring the power of AI in music creation
  16. Navigating new business opportunities with ChatGPT-4
  17. AI tools for the manager
  18. 6 awesome ChatGTP plugins that will make your life easier
  19. 3 grafików AI. Generatywna sztuczna inteligencja dla biznesu
  20. What is the future of AI according to McKinsey Global Institute?
  21. Artificial intelligence in business - Introduction
  22. What is NLP, or natural language processing in business
  23. Automatic document processing
  24. Google Translate vs DeepL. 5 applications of machine translation for business
  25. The operation and business applications of voicebots
  26. Virtual assistant technology, or how to talk to AI?
  27. What is Business Intelligence?
  28. Will artificial intelligence replace business analysts?
  29. How can artificial intelligence help with BPM?
  30. AI and social media – what do they say about us?
  31. Artificial intelligence in content management
  32. Creative AI of today and tomorrow
  33. Multimodal AI and its applications in business
  34. New interactions. How is AI changing the way we operate devices?
  35. RPA and APIs in a digital company
  36. The future job market and upcoming professions
  37. AI in EdTech. 3 examples of companies that used the potential of artificial intelligence
  38. Artificial intelligence and the environment. 3 AI solutions to help you build a sustainable business
  39. AI content detectors. Are they worth it?
  40. ChatGPT vs Bard vs Bing. Which AI chatbot is leading the race?
  41. Is chatbot AI a competitor to Google search?
  42. Effective ChatGPT Prompts for HR and Recruitment
  43. Prompt engineering. What does a prompt engineer do?
  44. AI Mockup generator. Top 4 tools
  45. AI and what else? Top technology trends for business in 2024
  46. AI and business ethics. Why you should invest in ethical solutions
  47. Meta AI. What should you know about Facebook and Instagram's AI-supported features?
  48. AI regulation. What do you need to know as an entrepreneur?
  49. 5 new uses of AI in business
  50. AI products and projects - how are they different from others?
  51. AI-assisted process automation. Where to start?
  52. How do you match an AI solution to a business problem?
  53. AI as an expert on your team
  54. AI team vs. division of roles
  55. How to choose a career field in AI?
  56. Is it always worth it to add artificial intelligence to the product development process?
  57. AI in HR: How recruitment automation affects HR and team development
  58. 6 most interesting AI tools in 2023
  59. 6 biggest business mishaps caused by AI
  60. What is the company's AI maturity analysis?
  61. AI for B2B personalization
  62. ChatGPT use cases. 18 examples of how to improve your business with ChatGPT in 2024
  63. Microlearning. A quick way to get new skills
  64. The most interesting AI implementations in companies in 2024
  65. What do artificial intelligence specialists do?
  66. What challenges does the AI project bring?
  67. Top 8 AI tools for business in 2024
  68. AI in CRM. What does AI change in CRM tools?
  69. The UE AI Act. How does Europe regulate the use of artificial intelligence
  70. Sora. How will realistic videos from OpenAI change business?
  71. Top 7 AI website builders
  72. No-code tools and AI innovations
  73. How much does using AI increase the productivity of your team?
  74. How to use ChatGTP for market research?
  75. How to broaden the reach of your AI marketing campaign?
  76. "We are all developers". How can citizen developers help your company?
  77. AI in transportation and logistics
  78. What business pain points can AI fix?
  79. Artificial intelligence in the media
  80. AI in banking and finance. Stripe, Monzo, and Grab
  81. AI in the travel industry
  82. How AI is fostering the birth of new technologies
  83. The revolution of AI in social media
  84. AI in e-commerce. Overview of global leaders
  85. Top 4 AI image creation tools
  86. Top 5 AI tools for data analysis
  87. AI strategy in your company - how to build it?
  88. Best AI courses – 6 awesome recommendations
  89. Optimizing social media listening with AI tools
  90. IoT + AI, or how to reduce energy costs in a company
  91. AI in logistics. 5 best tools
  92. GPT Store – an overview of the most interesting GPTs for business
  93. LLM, GPT, RAG... What do AI acronyms mean?
  94. AI robots – the future or present of business?
  95. What is the cost of implementing AI in a company?
  96. How can AI help in a freelancer’s career?
  97. Automating work and increasing productivity. A guide to AI for freelancers
  98. AI for startups – best tools
  99. Building a website with AI
  100. OpenAI, Midjourney, Anthropic, Hugging Face. Who is who in the world of AI?
  101. Eleven Labs and what else? The most promising AI startups
  102. Synthetic data and its importance for the development of your business
  103. Top AI search engines. Where to look for AI tools?
  104. Video AI. The latest AI video generators
  105. AI for managers. How AI can make your job easier
  106. What’s new in Google Gemini? Everything you need to know
  107. AI in Poland. Companies, meetings, and conferences
  108. AI calendar. How to optimize your time in a company?
  109. AI and the future of work. How to prepare your business for change?
  110. AI voice cloning for business. How to create personalized voice messages with AI?
  111. Fact-checking and AI hallucinations
  112. AI in recruitment – developing recruitment materials step-by-step
  113. Midjourney v6. Innovations in AI image generation
  114. AI in SMEs. How can SMEs compete with giants using AI?
  115. How is AI changing influencer marketing?
  116. Is AI really a threat to developers? Devin and Microsoft AutoDev
  117. AI chatbots for e-commerce. Case studies
  118. Best AI chatbots for ecommerce. Platforms
  119. How to stay on top of what's going on in the AI world?
  120. Taming AI. How to take the first steps to apply AI in your business?
  121. Perplexity, Bing Copilot, or Comparing AI search engines
  122. ReALM. A groundbreaking language model from Apple?
  123. AI experts in Poland
  124. Google Genie — a generative AI model that creates fully interactive worlds from images
  125. Automation or augmentation? Two approaches to AI in a company
  126. LLMOps, or how to effectively manage language models in an organization
  127. AI video generation. New horizons in video content production for businesses
  128. Best AI transcription tools. How to transform long recordings into concise summaries?
  129. Sentiment analysis with AI. How does it help drive change in business?
  130. The role of AI in content moderation