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AI Horror Stories: What Happens When AI Lacks Human Oversight

When companies rush to put AI in front of their customers, hoping for the best, things can quickly go wrong. From mismanaged drive-thru orders to false accusations, these AI horror stories all have one thing in common—a lack of proper human oversight. The real power of AI comes from using it to augment your workforce and improve internal processes, not in hoping it can replace human judgment.

McDonald’s AI Drive-Thru Chaos: After years of development, McDonald’s AI system failed to take accurate orders, frustrating customers with repeated mistakes, like adding 260 Chicken McNuggets to a single order. The issue wasn’t just faulty tech, but the absence of human oversight to ensure the AI was truly ready for prime time.

Air Canada Chatbot Misleads Passenger: In February 2024, Air Canada was ordered to pay damages after its virtual assistant gave incorrect information about bereavement fares. A passenger was misinformed, leading to a denied refund and a legal battle. This illustrates the need for human review in sensitive customer service areas, where AI mistakes can have serious financial and reputational consequences.

NYC Chatbot’s Legal Missteps: Microsoft’s MyCity chatbot misled New York business owners by giving advice that was not only wrong but illegal, suggesting they could fire employees for harassment complaints. The real problem? No one was monitoring the chatbot’s advice, leaving businesses vulnerable to legal risks.

The power of AI is best realized when it’s used to augment human decision-making, streamline internal processes, and enhance operations. By applying AI thoughtfully within the business, rather than letting it interact directly with customers without oversight, you can avoid costly mistakes while still reaping the benefits of automation and efficiency.