California Residents Sue PG&E Over AI Call Recording Practices

Five California residents filed a class action lawsuit in Alameda County against Pacific Gas and Electric Company and PolyAI Technologies, accusing the companies of violating state privacy laws. The lawsuit claims that the utility provider routes customer service phone calls through an artificial intelligence answering service that wiretaps, eavesdrops on, and records ordinary conversations without proper consent.

According to the complaint, callers connect to a computer system introduced as an artificial intelligence product designed to handle and transcribe incoming calls. The plaintiffs state that customer calls are processed on external servers rather than the utility’s platform, and that callers are never informed that their voice data may be retained to build and sell products.

Allegations of Hidden Call Recording and Transcription

The plaintiffs argue that the utility’s automated greeting only mentions that calls may be recorded, failing to disclose that the agent is an artificial intelligence machine operated by a separate company. Furthermore, the lawsuit states that any attempt to object to recording comes too late, because the system has already received and analyzed the caller’s voice by the time the objection can be made.

The legal complaint argues that the utility selected the technology platform, scripted a concealment greeting, and directed callers to a privacy policy that contradicts the actual practices. The customer service lines of the utility provider receive approximately 16 million calls a year.

Sensitive Personal Information Disclosed to Third Parties

The class action seeks to represent California residents and utility customers whose phone calls were intercepted, recorded, or transcribed by the artificial intelligence system. The plaintiffs assert that callers unknowingly disclosed highly sensitive information, including names linked to home addresses, telephone numbers, account and meter numbers, Social Security numbers, and payment-card details.

Additionally, callers discussed the circumstances of gas leaks, outages, household medical needs, and financial hardship. The legal filing asks the court to find that the defendants violated state privacy laws, to award financial penalties, and to order the permanent deletion of all recordings and transcripts derived from the intercepted calls.

What This Means for Affected Utility Customers

Consumers who recently placed phone calls to the utility provider may find their call data involved in the pending litigation if they interacted with the automated assistant. The plaintiffs are asking the court to order the permanent deletion of all transcripts and voice recordings derived from these calls. At this stage, neither of the corporate defendants has responded publicly to requests for comment regarding the allegations.

Individuals who believe their personal or financial information may have been mishandled during customer service calls can monitor court developments for updates on class certification. Consulting with a legal professional may help affected consumers understand their rights regarding privacy violations and data protection laws.

This article is general information based on Courthouse News Service and court or agency records available at publication time. It is not legal advice; laws and deadlines differ by state and by case. Published October 19, 2026.