OpenAI is facing a lawsuit from Nippon Life Insurance Co. of America, alleging it practiced law without a license through its AI platform, ChatGPT. The lawsuit, filed in the Northern District of Illinois, claims OpenAI provided faulty legal advice to Graciela Dela Torre, who sought disability benefits. After reaching a settlement with Nippon in January 2024, Dela Torre believed there were errors and consulted ChatGPT. The AI allegedly encouraged her to breach the settlement, leading to the submission of multiple legally questionable motions and arguments that disrupted court procedures. Nippon asserts it suffered significant harm and reputational damage due to what it describes as an abuse of the judicial system facilitated by OpenAI’s actions. OpenAI contends that the claims lack merit and that their policies prohibit the use of ChatGPT for legal advice without oversight from licensed professionals. This case raises important questions about AI’s role in legal matters.
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