Welcome to the forefront of conversational AI as we explore the fascinating world of AI chatbots in our dedicated blog series. Discover the latest advancements, applications, and strategies that propel the evolution of chatbot technology. From enhancing customer interactions to streamlining business processes, these articles delve into the innovative ways artificial intelligence is shaping the landscape of automated conversational agents. Whether you’re a business owner, developer, or simply intrigued by the future of interactive technology, join us on this journey to unravel the transformative power and endless possibilities of AI chatbots.
ChatGPT’s developer reportedly encouraged a claimant to reopen a case that had already been settled
Nippon Life Insurance Company of America has sued ChatGPT developer OpenAI for practising law without a license after it reportedly encouraged and helped a claimant reopen a case that had already been settled and dismissed, reported Reuters.
The suit, filed in Chicago federal court, is seemingly among the first to call out an major AI developer for unauthorized legal practice through a customer-facing chatbot, Reuters noted. Nippon said that after settling her long‑term disability benefits suit with prejudice in January 2024, the claimant had shared an email from her former lawyer regarding her case to ChatGPT last year. The chatbot supposedly affirmed her suspicions regarding the lawyer’s legal advice; subsequently, the claimant fired the lawyer and instead used ChatGPT to generate filings reopening the case.
While a judge shot down the attempt in February 2025, the claimant filed a new case and continued to produce numerous motions and notices that Nippon said had “no legitimate legal or procedural purpose” in a statement published by Reuters. Nippon claimed that responding to the resulting filings cost it considerable time and resources, in addition to accumulating fees.
The company pointed out in snippets of the suit published by Reuters that ChatGPT is “not an attorney” and that it “has not been admitted to practice law in the State of Illinois or in any other jurisdiction within the United States.” While OpenAI reformed its policies to prohibit users from taking legal advice from ChatGPT, Nippon claimed the AI company had not implemented such restrictions before.
Thus, the suit seeks an order saying that OpenAI breached the unauthorized practice of law statute in Illinois as well as US$300,000 in compensatory damages and US$10 million in punitive damages. According to Reuters, the suit seems to be among the first to call out a major AI developer for using a consumer-facing chatbot to practise law without authorization.
OpenAI responded in a statement published by Reuters that Nippon’s complaint “lacks any merit whatsoever.”
Sidley Austin counsel Christopher Assise will act for Nippon in the case alongside Nippon Life Benefits assistant general counsel Justin Wax Jacobs. OpenAI’s legal team has yet to make an appearance, according to Reuters.
The case is Nippon Life Insurance Company of America v. OpenAI Foundation and OpenAI Group PBC, U.S. District Court, Northern District of Illinois, No. 1:26-cv-02448.
The Canadian Legal Newswire is a FREE newsletter that keeps you up to date on news and analysis about the Canadian legal scene, providing targeted news and information of interest to Canadian Lawyers.
Please enter your email address below to subscribe.
The Canadian Legal Newswire is a FREE newsletter that keeps you up to date on news and analysis about the Canadian legal scene, providing targeted news and information of interest to Canadian Lawyers.
Please enter your email address below to subscribe.
