California customers sue PG&E and AI vendor over alleged privacy breach

A group of five California residents, all PG&E customers, have initiated a class-action suit accusing the utility of violating the California Invasion of Privacy Act. According to the complaint, PG&E contracts with PolyAI Technologies to answer calls using an AI assistant called "Peggy," which connects callers to PolyAI’s platform rather than the utility’s own systems. The plaintiffs contend that callers are not warned that a third-party AI is listening, recording, and potentially storing their conversations, including sensitive personal and account information.

Because the recorded greeting only mentions possible recording by an "agent," it does not disclose the involvement of a machine operated by another company. The lawsuit requests $5,000 in damages for each alleged violation and demands that both companies permanently erase all call recordings and transcripts. PG&E and PolyAI have not responded to requests for comment.