OpenAI Sued for Libel After ChatGPT Allegedly Hallucinates Man Into Embezzlement Lawsuit
shows no signs of Walters’ name anywhere in its 30 pages. That complaint doesn’t have anything to do with financial accounting claims at all. ChatGPT hallucinated Walters’ name and the bogus story into its recounting of a real legal document, Walters alleges.
“The complaint does not allege that Walters misappropriated funds for personal expenses, manipulated financial records or bank statements, or failed to provide financial reports to SAF leadership, nor would he have been in a position to do so because he has no employment or official relationship,” Walters’ suit reads.When the skeptical journalist asked ChatGPT to provide him an exact passage of the lawsuit mentioning Walters, the chatbot allegedly doubled down on its claim.
“Certainly,” the AI responded, per Walters’ suit. “Here is the paragraph from the complaint that concerns Walters.” The chunk of text returned by ChatGPT, included below, does not exist in the actual complaint. The AI even got the case number wrong. “Defendant Mark Walters is an individual who resides in Georgia. Walters has served as the Treasurer and Chief Financial Office of SAF since at least 2012. Walters has access to SAF’s bank accounts and financial records and is responsible for maintaining those records and providing financial reports to SAF’s board of directors. Walters owes SAF a fiduciary duty of loyalty and care, and is required to act in good faith and with the best interests of SAF in mind.
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