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A radio host is suing OpenAI for defamation, alleging that ChatGPT created a false legal document that accused him of 'defrauding and embezzling funds'

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A radio host is suing OpenAI for defamation claiming ChatGPT provided a fake legal complaint about him. Beata Zawrzel/NurPhoto via Getty Images
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A radio host is suing OpenAI for defamation, alleging that ChatGPT created a fake legal complaint about him.

According to the lawsuit filed in a Georgia court, Mark Walters alleged that ChatGPT provided journalist Fred Riehl with a false legal complaint instead of a real case he was reporting on. The bot falsely identified Walters as involved in the case and said he was accused of "defrauding and embezzling funds," per court documents.

In the complaint, Walters said Riehl asked the AI-powered chatbot for a summary of a Washington case involving Attorney General Bob Ferguson and the Second Amendment Foundation, providing the chatbot with a link to the case.

The complaint said that in response to this, ChatGPT provided a summary saying the case was between Walters and the Second Amendment Foundation, and that Walters was "accused of defrauding and embezzling funds from the SAF."

The bot named the radio host as the organization's treasurer and chief financial officer, and said he had been accused of misappropriating funds for personal expenses and manipulating financial records, according to the suit.

Walters said that when the bot was pressed for more details, it eventually provided an entirely fake complaint, per court documents. The Georgia suit called the complaint a "complete fabrication" that "bears no resemblance to the actual complaint, including an erroneous case number."

The defamation case is the first of its kind, according to Bloomberg Law, and was most likely caused by a "hallucination." Experts have been warning for some time that AI chatbots can sometimes give false but convincing answers. 

Representatives for OpenAI and Walters did not immediately respond to Insider's request for comment made outside normal working hours.

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Beatrice Nolan was a tech reporter on the business news team in the UK. She joined Insider in January 2022 as a fellow on Business Insider's careers desk. Beatrice covered tech and the future of work, with a focus on artificial intelligence. Some of her stories and early experiments with ChatGPT are widely cited. Beatrice has also discussed her work covering AI trends on panels and radio shows, including NPR.She was based in Business Insider's London office and graduated from the University of  York with a bachelor's degree in English.Featured Articles:Artists say AI image generators are copying their style to make thousands of new images — and it's completely out of their control.ChatGPT was a black swan eventFinland is the world's happiest country, but Finns say we're confusing happiness for something elseThe world is splitting between those who use ChatGPT to get better, smarter, richer — and everyone elseThis man used AI to write and illustrate a children's book in one weekend. He wasn't prepared for the backlash.ChatGPT has only been around for 2 months and is causing untold chaosTwo professors who say they caught students cheating on essays with ChatGPT explain why AI plagiarism can be hard to proveChatGPT wrote college application essays. Admissions professionals said they passed for essays written by students but wouldn't have a chance at any top colleges.College professors are considering creative ways to stop students from using AI to cheatChatGPT wrote my cover letters. Here's how recruiters responded.