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.
Nippon Life Insurance Company of America has filed a lawsuit accusing OpenAI, the developer of the ChatGPT chatbot, of practicing law without a license and assisting a former disability claimant in reopening a previously settled case, according to Reuters. The complaint was filed Wednesday in federal court in Chicago and alleges that the artificial intelligence company improperly provided legal guidance that led to a wave of filings in federal court.
Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.
yesSubscribe to our daily newsletter, PYMNTS Today.
By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.
According to Reuters, the insurer claims OpenAI enabled a woman to pursue legal action after her long-term disability lawsuit had already been resolved and dismissed. Nippon Life argues that the chatbot’s involvement encouraged the claimant to challenge the outcome of the case and submit additional filings that the company says lacked merit.
“ChatGPT is not an attorney,” the lawsuit states. Nippon Life asserts that even though OpenAI has demonstrated that ChatGPT can pass an attorney bar exam, the system “has not been admitted to practice law in the State of Illinois or in any other jurisdiction within the United States.”
The lawsuit seeks a court declaration that OpenAI violated Illinois laws governing the unauthorized practice of law. Nippon Life is also requesting $300,000 in compensatory damages and $10 million in punitive damages, per Reuters.
Representatives for OpenAI and an attorney for Nippon Life, a subsidiary of Japanese insurer Nissay, did not immediately respond to requests for comment, according to Reuters.
Related: NY Bill Would Bar AI Chatbots From Providing ‘Substantive’ Medical or Legal Responses
In its filing, Nippon Life alleges that OpenAI’s chatbot encouraged the claimant—an employee of a logistics company insured by Nippon—to continue pursuing claims related to disability benefits after the original case had already been settled. The insurer says it had to devote significant time and financial resources responding to court documents that it claims were generated with the help of ChatGPT.
The case may be among the first to directly accuse a major artificial intelligence developer of engaging in unauthorized legal practice through a publicly available chatbot, according to Reuters.
We’d love to be your preferred source for news.
Please add us to your preferred sources list so our news, data and interviews show up in your feed. Thanks!
The lawsuit also comes amid increasing scrutiny of generative AI tools in the legal field. Courts have recently encountered instances in which filings produced with AI contained fabricated legal citations or other inaccurate material, leading judges to sanction attorneys and litigants who relied on such tools without proper verification, per Reuters.
Nippon Life’s complaint stems from events that occurred after the employee settled her lawsuit over long-term disability benefits with prejudice in January 2024. The woman herself is not named as a defendant in the case.
According to Reuters, the insurer alleges that the claimant uploaded an email from her lawyer into ChatGPT in 2024. The chatbot allegedly supported her concerns about the legal advice she had received. Afterward, the woman dismissed her attorney and attempted to reopen the settled case using documents generated with the help of ChatGPT.
A judge rejected her attempt to revive the case in February 2025. However, Nippon Life claims that the woman subsequently initiated a new lawsuit and filed dozens of motions and notices that the insurer contends served “no legitimate legal or procedural purpose.” The company alleges that those documents were drafted using ChatGPT, according to Reuters.
Nippon Life also noted in the lawsuit that OpenAI revised its policies in October to prohibit users from relying on the platform for legal advice. The insurer claims the platform previously lacked such restrictions, per Reuters.
The case is titled Nippon Life Insurance Company of America v. OpenAI Foundation and OpenAI Group PBC and is being heard in the U.S. District Court for the Northern District of Illinois under case number 1:26-cv-02448.
Attorneys representing the plaintiff include Justin Wax Jacobs of Nippon Life Insurance Company of America and Christopher Assise of Sidley Austin, according to Reuters.
Source: Reuters
States Prepare New Legal Challenge to Trump’s Global Tariffs
Mar 5, 2026 by CPI
OpenAI Accused in Chicago Lawsuit of Acting as Unlicensed Legal Advisor
Mar 5, 2026 by CPI
Senate Democrats Target Meatpacking Giants With New Antitrust Bill
Mar 5, 2026 by CPI
FATF Report Highlights Risk of Stablecoins’ Use in Money Laundering and Other Crimes
Mar 5, 2026 by CPI
Lawsuit Challenges US Approval of TikTok Joint Venture Deal
Mar 5, 2026 by CPI
Antitrust Chronicle® – Behavioral Economics
Feb 22, 2026 by CPI
Behavioral Antitrust in 2026
Feb 22, 2026 by Maurice Stucke
Behavioral Economics in Competition Policy: Going Beyond Inertia and Framing Effects
Feb 22, 2026 by Annemieke Tuinstra & Richard May
Agreeing to Disagree in Antitrust
Feb 22, 2026 by Jorge Padilla
Recognizing What’s Around the Corner: Merger Control, Capabilities, and the New Nature of Potential Competition
Feb 22, 2026 by Magdalena Kuyterink & David J. Teece