OpenAI Hit With First Defamation Suit Over ChatGPT Hallucination

OpenAI LLC is facing a defamation lawsuit from a Georgia radio host who claimed the viral artificial intelligence program ChatGPT generated a false legal complaint accusing him of embezzling money.

The first-of-its-kind case comes as generative AI programs face heightened scrutiny over their ability to spread misinformation and “hallucinate” false outputs, including fake legal precedent.

Mark Walters said in his Georgia state court suit that the chatbot provided the false complaint to Fred Riehl, the editor-in-chief of the gun publication AmmoLand, who was reporting on a real life legal case playing out in Washington state.

Riehl ...