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AllHere's Chatbot 'Ed' Fails and Costs Los Angeles Unified School District $6 Million

Occurred
Jul 1, 2024
Published
Nov 19, 2024
Source
AI Incident Database

Summary

The Los Angeles Unified School District invested up to $6 million in developing the AI chatbot "Ed," meant to provide academic and mental health support for students. The chatbot allegedly failed to meet expectations, and the project collapsed when AllHere, the contracted start-up, faced financial difficulties. Prince George's County Public Schools in Maryland was also affected. Founder Joanna Smith-Griffin was removed as CEO in June 2024 and later arrested on fraud charges.

Developers

  • AllHere

Deployers

  • Los Angeles Unified School District (LAUSD)
  • AllHere
  • Alberto Carvalho

Harmed parties

  • Taxpayers
  • Prince George's County students
  • Prince George’s County Public Schools
  • Prince George's County parents
  • Los Angeles Unified School District (LAUSD)
  • Los Angeles students
  • Los Angeles parents
  • Educational communities
  • Students
  • Teachers
  • Educators

Classification

Category confidence: 90%
Severity confidence: 85%

Rationale: AI chatbot failure led to $6M financial loss and fraud charges against founder.

Classifier: Qwen/Qwen3.5-35B-A3B-FP8

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