AI incident ·
Kronos Scheduling Algorithm Allegedly Caused Financial Issues for Starbucks Employees
On this page 9 sections
In brief
An AI system built by Kronos and deployed by Starbucks allegedly harmed Starbucks employees.
- Risk domain
- Socioeconomic & Environmental Harms
- Occurred
- Coverage
- 9 reports
What happened
Kronos’s scheduling algorithm and its use by Starbucks managers allegedly negatively impacted financial and scheduling stability for Starbucks employees, which disadvantaged wage workers.
Laws on record for this risk area
Policy angle: Classified under Socioeconomic & Environmental Harms (Increased inequality and decline in employment quality) in the MIT AI Risk Repository taxonomy; 4 instruments on record cover this risk area in the United States.
- NYC Local Law 144 (automated employment decision tools)
- Texas Responsible AI Governance Act (TRAIGA)
- Illinois AI Video Interview Act
- Illinois HB 3773 (AI in employment, Human Rights Act amendment)
Matched from the record's risk category and country to the instruments in effect recorded here: a law listed covers the area, which is not a finding that it applies to this incident. A reviewer can correct the match in the repository (data/external/incident_overrides.yaml).
News reports (9)
Titles link to the original publisher; report text is not reproduced here.
Who was involved
AI systems implicated
Classification (MIT AI Risk Repository taxonomy)
- Risk domain
- Socioeconomic & Environmental Harms
- Causal entity
- AI
- Intent
- Intentional
- Timing
- Post-deployment
- Harm level
- AI tangible harm event
- Sectors
- accommodation and food service activities
- Countries
- US
Risk entries describing this failure mode
Entries from the MIT AI Risk Repository coded to subdomain 6.2.
- Societal inequality
"Societal inequality - Increased difference in social status or wealth between individuals or groups caused or amplified by a technology system, leading to the loss of social and community wellbeing/cohesion and destabil...
- Societal destabilisation
"Societal destabilisation - Societal instability in the form of strikes, demonstrations and other types of civil unrest caused by loss of jobs to technology, unfair algorithmic outcomes, disinformation, etc."
- Labour exploitation
"Labour exploitation - Use of under-paid and/or offshore labour to develop, manage or optimise a technology system."
- Job loss/losses
"Job loss/losses - Replacement/displacement of human jobs by a technology system, leading to increased unemployment, inequality, reduced consumer spending, and social friction."
- Political instability
"Political instability - Political polarisation or unrest caused by increased inequality, job losses, over- dependence on technology making societies vulnerable to systemic failures, etc, arising from or amplified by the...
- Increased income disparity
"While AI is predicted to bring increased GDP per capita by performing existing jobs more efficiently and compensating for a decline in the workforce, especially due to population aging, the potential substitution of man...
- Economic
"AI is predicted to bring increased GDP per capita by performing existing jobs more efficiently and compensating for a decline in the workforce, especially due to population aging, the potential substitution of many low-...
- Effects on Inequality
"LLMs could potentially worsen socioeconomic inequalities (Capraro et al., 2023). Effects on inequal- ity are closely linked to the effects of LLMs on workers but ultimately depend on how the fruits of technological prog...
Related incidents
Linked by editors or by text similarity in the source dataset.
Incidents in the same risk subdomain
- Polish Radio Station Replaces Human Hosts with AI-Generated Presenters to Simulate Interviewing Deceased Poet Wisława Szymborska
- Fast Food Chains' AI Chatbots Failed to Assist Job Applicants with Scheduling Interviews
- Kenyan Data Annotators Allegedly Exposed to Graphic Content for OpenAI's AI
- RealPage Algorithm Allegedly Inflates Rents and Reduces Competition in Housing Market
- Amazon Flex Drivers Allegedly Fired via Automated Employee Evaluations
Source record: incident #10 on the AI Incident Database · all 9 reports