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ARTICLE · 08 SEPTEMBER 2023

Fake It Till You Break It: Insurance Coverage Implications For ChatGPT Mishaps

Lowenstein Sandler LLP
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Lowenstein Sandler LLP

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ChatGPT, an Artificial Intelligence (AI) chatbot created by OpenAI, has taken the legal world by storm since it first launched in November 2022.

United StatesInsurance
Lynda A. Bennett
Lynda A. Bennett
Sabrina N. Jorge
Sabrina N. Jorge

ChatGPT, an Artificial Intelligence (AI) chatbot created by OpenAI, has taken the legal world by storm since it first launched in November 2022. The chatbot gained notoriety for its cutting-edge ability to answer questions and compose written content in a lifelike manner. Recently, however, the pitfalls associated with the use of ChatGPT in legal practice have emerged.

In June, two attorneys found themselves the subjects of a sanctions hearing in the Southern District of New York after the pair submitted a legal brief citing nonexistent case law. The author of the brief used ChatGPT to identify cases in support of his client's position. After ChatGPT delivered seemingly spot-on cases, he proceeded to cite the AI-generated case law without reading the cases themselves or otherwise independently verifying the facts or holdings. That put the lawyer and his firm in the crosshairs of Judge P. Kevin Castel, who was none too pleased to be reading what he described as bogus

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