What to know about LAUSD’s AllHere contract following federal searches
As federal authorities investigate matters related to Los Angeles Unified School District Superintendent Alberto Carvalho, several media outlets have reported that the probe may be connected to the district’s past contract with AllHere, a now-defunct education technology startup that developed an artificial intelligence chatbot for LAUSD.
Federal officials have not confirmed the focus of the investigation, and the affidavits supporting Wednesday’s search warrants remain under seal.
In March 2024, the district rolled out “Ed,” an AI-powered chatbot designed to support students and families by addressing chronic absenteeism and providing academic and mental health resources.
The district entered into a professional services contract valued at roughly $6 million with the Boston-based AllHere in 2023. The agreement was structured as an initial two-year term with three one-year renewal options, education news outlet The 74 reported at the time.
The chatbot was unveiled with significant fanfare during Carvalho’s annual address in August 2023 and promoted as part of the district’s broader post-pandemic strategy.
District leaders at the time said the chatbot was intended to serve as a personalized digital assistant for the district’s more than 540,000 students.
LAUSD ultimately paid about half the contract amount before AllHere collapsed in June 2024 and furloughed most of its staff. The chatbot was taken offline shortly thereafter.
Later that year, federal prosecutors in New York charged AllHere’s former chief executive, Joanna Smith-Griffin, with securities fraud, wire fraud and aggravated identity theft, alleging she misled investors about the company’s financial condition and operations. Those charges were not specifically tied to LAUSD’s contract.
LAUSD has previously said it was not aware of any financial irregularities at the company and that it had not received any requests from federal authorities related to the matter.
Carvalho has denied personal involvement in the selection of AllHere, according to the Los Angeles Times. He also later announced plans to form his own task force to review the district’s relationship with AllHere and evaluate how it would move forward with artificial intelligence initiatives.
Carvalho led Miami-Dade County Public Schools for 14 years before taking helm at LAUSD in 2022 — a connection that has drawn attention after federal agents executed a search Wednesday at a residence in Southwest Ranches, Florida.
The FBI’s Miami field office confirmed the search but did not provide details. Multiple media outlets have reported that property records link the home to Debra Kerr, an education technology salesperson whose clients included AllHere. Neither FBI nor law enforcement sources identified Kerr as a target of the investigation.
The 74 previously reported that Kerr claimed in bankruptcy proceedings that AllHere owed her approximately $630,000 in unpaid commissions related to the LAUSD contract. The outlet has also reported that her son, Richard Kerr, a former AllHere account executive, said he helped pitch the company to Los Angeles school leaders.
The 74 further reported that Kerr has longstanding professional ties to Carvalho dating back to his tenure leading Miami-Dade schools. Federal authorities have not indicated whether those prior associations are relevant to the current investigation.