Extract from Marianna Wharry’s article “UPL Claim Against ChatGPT Faces Hurdles, but Social Media Addiction Verdicts May Bolster Liability”
A lawsuit filed against OpenAI, claiming ChatGPT engaged in the unauthorized practice of law, rattled the legal industry last month. While experts say the lawsuit will likely face hurdles, some add that two recent verdicts holding social media companies liable under products liability concepts may raise the plaintiff’s hopes for success on the novel lawsuit.
Nippon Life Insurance Co. of America filed suit against OpenAI in March after former pro se litigant Graciela Dela Torre used ChatGPT to contest a previously settled and dismissed lawsuit against the insurer. The complaint was filed in the U.S. District Court for the Northern District of Illinois and claimed ChatGPT provided unauthorized legal assistance to Dela Torre, resulting in 44 frivolous motions and $300,000 in legal expenses. Instead of the company suing Dela Torre, Nippon decided to take on one of the artificial intelligence industry’s biggest fish and named the OpenAI Foundation and OpenAI Group PBC as defendants.
The case raises unresolved legal questions, including whether AI tools can be held liable as third-party offenders, whether providing legal assistance constitutes “practicing law” under state statutes, and the extent to which AI companies are responsible for foreseeable misuse of their products. A ruling against OpenAI could significantly impact the offering and regulation of AI legal tools.
However, not all legal experts see the facts as an easy fit for an unauthorized practice of law claim.
