What happened

Wolf River Electric noticed a spike in canceled contracts after customers discovered Google AI-powered search summaries alleging the company faced legal action from Minnesota Attorney General Keith Ellison and had engaged in misconduct such as misleading consumers and using high-pressure sales tactics. 

According to the complaint, the AI cited four sources, including a Star Tribune article, Angie’s List, a press release from the Attorney General’s office, and a KROC News story, none of which, the company says, actually claim that Wolf River was being sued. 

In reality, Wolf River Electric was never sued by the state. The AI summaries cited non-existent lawsuits, misattributed sources, and erroneously referenced unrelated cases from the Minnesota Attorney General. 

As a result, customers canceled projects, including contracts worth over USD 150,000 and a reported loss of USD 25 million in sales for 2024. 

Wolf River Electric is seeking over USD 110 million in damages, claiming severe business and reputational losses. 

Why it happened

The incident occurred due to Google’s generative AI systems (Gemini AI and AI Overviews search autocomplete) synthesising and presenting information inaccurately and without adequate transparency or accuracy checks. 

The systems falsely combined details from unrelated legal cases against other solar companies and attributed them to Wolf River. 

Despite Wolf River raising these errors with Google, the tech company allegedly offered no correction, retraction, or public acknowledgment, demonstrating a resolute lack of transparency and accountability.