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https://www.productionai.institute/graph/events/evt-aiid-748

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Production AI Institute public record · AI Incident Database: Erroneous Declined Transaction Notification by PayPal AI Assistant · observed 2024-07-18
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AI Incident Database: 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 wi…

AI Incident Database · Incident 748

Operator lens (medium): inspect D2 (output validation), D6 (autonomy oversight).

Confidence
78%
Sources
2
Entities
4
Detected
detected 731d ago

Event summary

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 wi…

D2D6

Linked entities

  • paypal

    organisation | 70%

  • kiri-wagstaff

    organisation | 70%

  • paypal-customer-service-representatives

    organisation | 70%

  • paypal-customers

    organisation | 70%

Related graph edges

EdgeTypeConfidence
ent-aiid-paypal to ent-psf-d2maps to60%
ent-aiid-paypal to ent-psf-d2maps to60%
ent-aiid-paypal to ent-psf-d2maps to60%
ent-aiid-paypal to ent-psf-d6maps to60%
ent-aiid-paypal to ent-psf-d6maps to60%
ent-aiid-paypal to ent-psf-d6maps to60%

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Event dates

  • Happened 19 June 2024

  • Detected 18 July 2024

Sources

  • AI Incident Database - Incident 748

    secondary | checked 9 July 2026

    Open source
  • How not to use generative AI

    secondary | checked 18 July 2024

    Open source
Cite this record

"AI Incident Database: Erroneous Declined Transaction Notification by PayPal AI Assistant." https://www.productionai.institute/graph/events/evt-aiid-748 (observed 2024-06-19; retrieved 2026-07-19). PAI.

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