$6M AllHere AI chatbot in Carvalho federal probe promised to teach algebra, steer kids to college

The failed $6 million AI chatbot known as “Ed” has become the center of a federal criminal investigation involving Los Angeles Unified School District (LAUSD) Superintendent Alberto Carvalho. The chatbot, designed to be an “educational friend” for school children, was supposed to assist with homework, provide school information, and even guide students on college choices. However, it failed to deliver on its promises and was taken offline just two months after its launch.

The controversy surrounding Ed began when the company behind the tool collapsed amid accusations of embezzlement by its founder, leading to an FBI investigation. Despite the scandal, Carvalho was reappointed to his position by the LA school board. However, grassroots groups like Schools Beyond Screens raised concerns about the lack of transparency and efficacy in the deal surrounding Ed.

The situation escalated when federal agents raided Carvalho’s office and homes, as well as the home of a former sales consultant involved in selling Ed to LAUSD. The investigation focused on Carvalho’s role in the failed chatbot project and his relationship with the now-defunct tech firm. Questions were raised about the competitive bidding process and why a startup like AllHere was chosen over established players for the project.

The founder of AllHere, Joanna Smith-Griffin, was arrested and charged with securities fraud, wire fraud, and aggravated identity theft. The company filed for bankruptcy, leaving LAUSD with only half of the $6 million contract paid out. Despite the scandal, Carvalho maintained support from the school board due to positive academic outcomes under his leadership.

While some viewed the Ed chatbot debacle as a minor blemish on Carvalho’s record, others like USC Rossier School of Education Dean Pedro Noguera believe there may be more issues with tech contracts approved under Carvalho’s tenure. Groups like Schools Beyond Screens are calling for a reexamination of all tech contracts approved during his time as superintendent.

As the investigation continues, the fallout from the failed AI chatbot project could have broader implications for tech procurement and oversight in LAUSD. The controversy surrounding Ed serves as a cautionary tale about the risks involved in rushing to adopt new technologies without proper due diligence and oversight.