Top Law Firm Apologizes to Bankruptcy Judge for AI Hallucination

One of Wall Street’s prominent law firms, Sullivan & Cromwell, wrote to a bankruptcy judge to apologize for a court motion that included inaccurate citations generated by artificial intelligence, according to a filing in the US Bankruptcy Court for the Southern District of New York.

In the April 18 apology, Andrew Dietderich, founder and co-head of Sullivan’s restructuring group, said the firm had been made aware of errors in an emergency motion filed in the bankruptcy of Prince Global Holdings.

“The inaccuracies and errors in the Motion include artificial intelligence (“AI”) “hallucinations,” according to the letter, which added ...