A failed $6 million AI chatbot called “Ed” has become the center of a federal criminal investigation involving Los Angeles Unified School District Superintendent Alberto Carvalho. The chatbot, which was supposed to be an educational tool for students, failed to deliver on its promises and was taken offline just two months after its launch. The firm that sold the tool to LAUSD collapsed amid accusations of embezzlement, leading to an FBI investigation.
Carvalho, who was once seen as a rising star in education, is now under scrutiny for his involvement in the failed chatbot project. Federal agents raided his office, his home in San Pedro, and a home in Miami belonging to Debra Kerr, a former sales consultant with the tech firm AllHere. Kerr claims she was never paid her fee for selling the chatbot to the district.
The district officials have defended the project, stating that the idea for Ed came from Carvalho as part of an effort to help students recover from the academic slide caused by the pandemic. However, questions have been raised about the competitive bidding process and why a newcomer like AllHere was chosen over established players in the industry.
Despite the collapse of AllHere and Ed, Carvalho retained the support of LA Unified’s school board. The district had paid out half of the $6 million contract before the project was shut down. Carvalho’s strong leadership had led to improvements in test scores and graduation rates in the district.
While some believe the issue ends with the failed chatbot, others like Lila Byock, founder of Schools Beyond Screens, are calling for a thorough examination of all tech contracts approved under Carvalho’s tenure. The fallout from the Ed chatbot scandal may not be over, and further investigations could reveal more about the district’s dealings with technology companies.

