Source: Reason (The Volokh Conspiracy)

Reason highlights a significant ruling where Polsinelli PC, one of the largest law firms in the United States, was ordered to pay a $50,000 sanction due to the misuse of artificial intelligence in legal filings. The incident occurred when an associate at the firm utilized a generative AI tool to draft a brief, which subsequently included citations to non-existent court cases—a phenomenon known as "hallucination." The firm submitted these filings to the court without adequate verification, violating the duty of candor and competence.

The federal judge rejected the firm's defense that the error was unintentional, emphasizing the necessity of human oversight when employing advanced technologies. The sanction serves as a stern warning to the legal profession that while AI can be a powerful tool, it does not absolve attorneys of their professional responsibility to validate sources. This case marks a high-profile instance of judicial enforcement of standards regarding AI in the courtroom, signaling that courts will hold firms strictly liable for the outputs of the automated systems they employ.