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Incident 748: Erroneous Declined Transaction Notification by PayPal AI Assistant

Description: On July 13th, 2024, a user reported an incident involving PayPal's generative AI chatbot. The chatbot allegedly incorrectly informed the user of a declined transaction that never occurred, causing confusion and prompting a call to customer service for clarification. This false alert suggests a flaw in the AI system's reliability. The incident created unnecessary labor for both the user and PayPal's human support, demonstrating the potential harm of deploying generative AI without thorough testing and error handling mechanisms.

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Alleged: PayPal developed and deployed an AI system, which harmed Kiri Wagstaff , PayPal customer service representatives and PayPal customers.

Incident Stats

Incident ID
748
Report Count
1
Incident Date
2024-06-19
Editors
Applied Taxonomies
MIT

MIT Taxonomy Classifications

Machine-Classified
Taxonomy Details

Risk Subdomain

A further 23 subdomains create an accessible and understandable classification of hazards and harms associated with AI
 

7.3. Lack of capability or robustness

Risk Domain

The Domain Taxonomy of AI Risks classifies risks into seven AI risk domains: (1) Discrimination & toxicity, (2) Privacy & security, (3) Misinformation, (4) Malicious actors & misuse, (5) Human-computer interaction, (6) Socioeconomic & environmental harms, and (7) AI system safety, failures & limitations.
 
  1. AI system safety, failures, and limitations

Entity

Which, if any, entity is presented as the main cause of the risk
 

AI

Timing

The stage in the AI lifecycle at which the risk is presented as occurring
 

Post-deployment

Intent

Whether the risk is presented as occurring as an expected or unexpected outcome from pursuing a goal
 

Unintentional

Incident Reports

Reports Timeline

Incident OccurrenceHow not to use generative AI
How not to use generative AI

How not to use generative AI

wkiri.com

How not to use generative AI
wkiri.com · 2024

The other day, I couldn't find some information I needed on the PayPal site, so I engaged with their generative AI chatbot. Before I could type anything, it launched in with this comment:

Hi Kiri!
I'm your PayPal Assistant and always here…

Variants

A "variant" is an incident that shares the same causative factors, produces similar harms, and involves the same intelligent systems as a known AI incident. Rather than index variants as entirely separate incidents, we list variations of incidents under the first similar incident submitted to the database. Unlike other submission types to the incident database, variants are not required to have reporting in evidence external to the Incident Database. Learn more from the research paper.

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