A U.S. insurer has sued OpenAI, alleging its chatbot ChatGPT effectively acted as an unlicensed lawyer by helping a former disability claimant reopen a settled legal dispute and file numerous court motions.
The lawsuit, filed in federal court in Chicago by Nippon Life Insurance Company of America, claims the AI provided legal guidance that led to a flood of filings that imposed significant legal costs on the insurer. The company is seeking about $300,000 in damages plus $10 million in punitive damages and a ruling that the conduct violated Illinois law governing unauthorized legal practice. OpenAI has rejected the allegations, calling the complaint meritless and noting its policies prohibit the use of ChatGPT for legal advice.
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