Founder of artificial intelligence company used by schools in Atlanta, NYC, LA is arrested

Students sitting at a row of desks and using desktop computers.

FILE – Watford City Elementary School students use computers in a portable building in Watford City, N.D., Dec. 17, 2014. The founder of an artificial intelligence company that supplied school districts in Atlanta, Los Angeles and New York with a chatbot to create learning plans for students was arrested on fraud charges Tuesday, accused of spending investor money on herself as her company spiraled into bankruptcy. (AP Photo/Eric Gay, File)

The founder of an artificial intelligence company that supplied school districts in Atlanta, Los Angeles and New York with a chatbot to create learning plans for students was arrested on fraud charges Tuesday, accused of spending investor money on herself as her company spiraled into bankruptcy.

Joanna Smith-Griffin, 33, of Raleigh, North Carolina, was arrested in her home state and charged with securities and wire fraud, along with identity theft.

She founded ALLHere Education Inc., an artificial intelligence technology company that created “Ed” the chatbot. The Los Angeles Unified School District was among those that used the product for a time before shutting it down, citing the financial collapse of Smith-Griffin’s company.