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Nippon Life Insurance's U.S. subsidiary has filed a multimillion-dollar lawsuit against OpenAI, the developer of generative artificial intelligence chatbot ChatGPT.
Nikkei reported on January 6 that Nippon Life's U.S. unit filed a $10.3 million damages suit against OpenAI in the U.S. District Court for the Northern District of Illinois in Chicago on January 4 local time. The case is expected to be the first lawsuit holding a major AI company liable for unlicensed legal practice.
Nippon Life claims ChatGPT provided legal advice without a law license, causing the company to become embroiled in unnecessary litigation.
According to the complaint, the case originated from a dispute between Nippon Life and a disability insurance beneficiary. The two parties had previously clashed over insurance payouts and reached a settlement. However, after receiving advice from ChatGPT, the beneficiary attempted to void the agreement and filed another lawsuit.
"Even though the court dismissed the case, this beneficiary filed additional lawsuits, forcing us to incur substantial legal costs," Nippon Life stated. "Since ChatGPT is not a licensed attorney, OpenAI's provision of legal services without a license is illegal."
The lawsuit seeks $300,000 in compensatory damages for actual losses including attorney fees, plus $10 million in punitive damages to prevent similar conduct in the future.
The case has drawn attention from the global technology and legal communities. At its core are questions about the extent to which AI responses can be considered permissible legal advice and whether developers should bear responsibility for the resulting societal costs.
AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.
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