Companies cut AI budgets over error-riddled output
The gist
Companies are cutting AI budgets after staff generated error-riddled output, Futurism reported.
Finance teams spend 26 percent of their workday checking AI outputs.
How it unfolded
- Nov 2022An airline's website chatbot told a customer he could buy a plane ticket under a bereavement policy and be reimbursed later; the airline refused to honor what the chatbot said.
- Jul 2024The National Institute of Standards and Technology issued a report on AI risk management calling AI mistakes and hallucinations "confabulations."
- Aug 26, 2026Reuters reported that companies like Meta were scaling back ambitious plans to lay off staffers and replace them with AI agents.