On February 2, 2023, Judge from Manhattan fined $5,000 to two lawyers for making fake cases generated by ChatGPT and then lying about it.

The lawyer who used ChatGPT's fake legal cases in court said he was 'duped' by the AI, but a judge questioned how he didn't spot the 'legal gibberish'
Lawyers made fake cases generated by ChatGPT | Business Insider


Two personal lawyers, Steven A. Schwartz, and Peter LoDuca, have been penalized with a $5,000 fine for fabricating cases using an AI tool called ChatGPT and providing false information about it. A Manhattan Judge imposed the fine. In an article published by Law and Crime, Schwartz submitted an affidavit acknowledging his use of the AI generator, ChatGPT, to “supplement legal research.” LoDuca, who was listed as the attorney in the case, endorsed a court filing referencing non-existent chances. It is worth noting that Schwartz, an experienced attorney with three decades of practice, did not sign the document as they were not admitted to practice in federal court.

In a recent court case, attorneys faced severe consequences for submitting misleading caselaw generated by an AI program. As a result, U.S. District Judge Kevin Castel imposed a fine. This case highlights the risks of relying solely on AI-generated content and emphasizes the importance of maintaining integrity in the legal profession.

During the proceedings, Attorney Schwartz acknowledged the unreliability of the AI program. However, instead of conducting independent research, Schwartz consulted ChatGPT once again to verify the authenticity of the case. This admission came after Schwartz had doubts about the AI-generated caselaw’s reliability.

Judge Castel firmly concluded that LoDuca knowingly made false statements and acted in bad faith to hide Schwartz’s involvement and his lack of meaningful verification. The judge’s examination of the AI-generated case law provided by the lawyers revealed significant flaws, including stylistic and reasoning issues that deviated from standard appellate decisions. Judge Castel straightforwardly described the legal analysis in the case law as “gibberish.”

This case warns about the dangers of unthinkingly relying on AI-generated content in the legal profession. It emphasizes the importance of upholding ethical standards, conducting thorough research, and promoting integrity to maintain the credibility of the American judicial system.

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