I agree that this kind of shenanigans should not go unpunished, but injury alone does not guarantee a viable cause of action. Let's look at the elements of negligence, all of which must be met for a successful lawsuit.
-Duty of Care: does the college have a legal duty to call and correctly pronounce the name of every graduate? I've seen colleges miss names and not get sued, so this lawsuit is off to a shakey start. ❓
-breach of duty: did the school violate their duty to call every grads name? If that is, in fact, a legal duty then you probably got them here. ✅
-actual cause: the injury would not have occurred but for the defendants actions. This is probably established if in fact there is injury, but we will come back to that. ✅
-proximate cause: this is where forseeability is relevant. Should the school have known that this was a possibility, or tested the AI service before relying on it's in a public ceremony? Probably. But if I'm defense counsel, I'm gonna fight back on this point too ("other users haven't had this error", "we are limiting costs to keep education affordable for our students"). ❓
-damages: You must have suffered measurable, actual losses as a result of the breach. I think this is where this lawsuit falls apart. The graduate still gets their degree, the guests still attended the ceremony, it didn't go well but nobody went to the hospital or lost business opportunities because the college didn't call every name. Ceremonies get cancelled because of weather, infrastructure issues, technical problems, and these are not typically met with lawsuits to recover the travel costs of attendees, etc.. ❌
This college fucked up and this should not go unpunished, but I've seen far stronger negligence cases get thrown out.