AI & Your Business: Libel Risks - Lexology
As businesses incorporate generative AI into their content-creation processes, the risk of facing libel lawsuits increases. It is crucial for businesses to be aware of the potential issues that may arise from AI-generated content, including text, images, video, audio, and other forms of information.
Types of Libel Lawsuits Stemming from AI-generated Content
In the United States, there have been cases highlighting the intersection of AI and libel. Two common scenarios include libel by juxtaposition and libel by hallucination.
Battle v. Microsoft Corp., No. 1:23-CV-01822 (D. MD., filed July 7, 2023)
Jeffery Battle, also known as “The Aerospace Professor,” filed a lawsuit against Microsoft alleging AI-generated libel-by-juxtaposition. The complaint claimed that the Bing search engine generated false statements linking Battle to a convicted terrorist with a similar name, causing professional and personal harm. Despite Microsoft's motion to compel arbitration being granted, the outcome of this case remains uncertain.
Walters v. Open AI, LLC, No. 23-A-04860-2 (Superior Court of Gwinnett County, State of GA, filed June 5, 2023)
In this alleged generative AI libel-by-hallucination case, radio personality Mark Walters sued Open AI, LLC. The complaint alleged that ChatGPT, developed by Open AI, provided a fabricated summary of a legal complaint, falsely accusing Walters of defrauding and embezzling funds. Despite Open AI's motion to dismiss being denied, the case is currently in the discovery stage.
Businesses must be vigilant when using AI technologies to create content and be prepared to address any potential legal challenges that may arise from AI-generated information.
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