NHelp, EPIC, and Upturn have filed a complaint against Deloitte over the accuracy of its Texas Integrated Eligibility Redesign System (TIERS), which is used to evaluate individuals' eligibility for Medicaid. The complaint accuses Deloitte of violating the Federal Trade Commission (FTC) Act, claiming that the system is deceptive and unfair, and cites several established voluntary AI frameworks including the OECD AI Principles and the Universal Guidelines for AI to support its case. The complaint calls for Deloitte to adopt these frameworks, increase transparency, and implement harm mitigation measures. The complaint highlights the value in voluntarily adopting responsible AI frameworks to reduce reputational and legal risks.

The use of Artificial Intelligence (AI) in high-risk applications is raising legal and ethical questions, leading to legal battles and class actions. The consequences of AI misuse can be severe, including job loss, asset seizure, and wrongful placement of children, prompting the need for AI Risk Management. Several industries have faced legal action due to discriminatory outcomes resulting from AI use, such as HR Tech Lawsuits and Insurance Tech Lawsuits. To avoid such outcomes, due diligence is crucial when outsourcing AI systems, and it is vital to measure and mitigate bias and understand additional risks, such as explainability, robustness, security, and privacy.

The use of artificial intelligence (AI) in high-stakes applications has raised concerns about the risks associated with it. AI algorithms can introduce novel sources of harm, which can amplify and perpetuate issues such as bias. There have been several controversies around the misuse of AI, affecting different sectors. These include the Northpointe COMPAS tool's flawed prediction of criminal reoffending by Black defendants in the legal system and Amazon's scrapped resume screening tool being biased against female applicants. The importance of a risk management framework and explainable algorithms is highlighted. Upcoming laws will soon require companies to ensure they minimize the risks of their AI and use it safely.