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DATDAT-003 — Data Bias and Fairness Oversights

AI System Malfunctions Cause Loss of Welfare and Pension Entitlements

3/5Sector: TechnologyGeography: GlobalStage: OperateIngested: —

Executive Summary

Generative AI malfunctions and misuse have caused individuals to lose access to welfare benefits, pensions, and housing through erroneous automated decisions. Boards face material liability exposure and regulatory scrutiny where AI systems displace human judgement in high-stakes entitlement processes.

Domain

Data Management

Blindspots in data quality, privacy, bias, lineage, lifecycle, and third-party data dependencies.

Source

MIT AI Risk Repository — A Closer Look at the Existing Risks of Generative AI: Mapping the Who, What, and How of Real-World Incidents (Li2025) ↗

https://airisk.mit.edu/

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