2026-09-20T23:22:28.549Z
- publishedAt:
Not provided→ 2024-07-13T00:00:00.000Z
SOURCE-LINKED INTELLIGENCE
Erroneous Declined Transaction Notification by PayPal AI Assistant
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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- recordType
- incident-report
- evidenceStatus
- reported
- region
- Global
Reported occurrence date: 2024-06-19T00:00:00.000Z
Evidence & attribution
- AI Incident Database
- AI Incident Database · 2024-07-13T00:00:00.000Z
AI Incident Database, Responsible AI Collaborative; McGregor (2021), Preventing Repeated Real World AI Failures by Cataloging Incidents. Incident-specific contributor credits are available at each citation link. Metadata adapted; article text excluded.
License: CC BY-SA 4.0
First collected: 2026-09-19T22:50:59.123Z. This is not the publication date.
Observed changes
AIIC observation times, not verified publisher revision times. Up to eight recent revisions.