Fake ChatGPT Cases Result in Lawyers Losing $5,000 and Facing Public Humiliation

Two lawyers from Manhattan have been fined $5,000 by a federal judge for submitting a court brief that contained bogus quotes from fake cases generated by the artificial intelligence program, ChatGPT. Lawyers Steven Schwartz and Peter LoDuca may also face additional discipline from New York’s state bar association, as the judge found that at least one of them knowingly made false statements to the court, and they doubled down on the fake cases when questioned about the brief’s accuracy. The lawyers’ reliance on ChatGPT, which generated the citations for fake cases, has drawn attention to the risks of using AI in legal practice, with legal ethics experts warning of disciplinary consequences. Despite the fine, the harm caused to their client who is suing Avianca Airlines, and the reputational damage to the judges whose names were connected to the fake opinions, the lawyers may only face a slap on the wrist from any state bar discipline proceeding, according to Michael Frisch, ethics counsel at Georgetown Law.