OpenAI to face world's first defamation lawsuit over false claims made by ChatGPT

Artificial intelligence company OpenAI could be on the verge of facing the world's first defamation lawsuit over the content generated by its AI chatbot, ChatGPT. An Australian Mayor has threatened to file a defamation lawsuit against ChatGPT, accusing the AI-based chatbot of making some false claims.

Regional Australian mayor Brian Hood is planning to sue OpenAI, the company behind the popular AI chatbot, if it doesn't correct the false claims made by ChatGPT. Apparently, the AI bot said that the Australian mayor had served time in prison on bribery charges.

The politician is understandably worried about his reputation online since people have started asking him about ChatGPT's false claims. If the mayor decides to deal with this in court, then OpenAI could end up facing its first-ever defamation lawsuit against the AI chatbot. To recap, Hood was elected Mayor of the town of Hepburn Shire in November 2022.

Hood became concerned about his online reputation when he found out that ChatGPT had falsely accused him of being involved in a foreign bribery scandal. This early 2000s scandal centered on a Reserve Bank of Australia subsidiary. Although Hood worked for the subsidiary during this time, he was the person who informed authorities about the aforesaid bribes, according to a report by GizmoChina.

Aside from this, the report claims Hood never faced any criminal charges. Another report by News18 suggests Hood's lawyers sent a letter of concern to the AI company on March 21, urging them to revise the incorrect shred of misinformation. Hood's lawyers have requested the company to either remove the misreported information or face a potential lawsuit.

Moreover, OpenAI has 28 days to change the inaccurate information. The AI firm is currently mum on Hood's legal letter. It will be interesting to see whether Hood decides to follow through with the lawsuit, becoming the first individual to sue the company behind ChatGPT over false claims. A partner at Hood's law firm Gordon Legal, James Naughton, pointed out that Hood is an elected official and his "reputation is central to his role."

Naughton said that if the lawsuit materialises, it will be a "landmark moment" given that Gordon Legal will be applying a defamation law to a new area of AI. Notably, AI chatbots including Microsoft's Bing, ChatGPT, and Bard have been catching flak lately. According to an earlier report, Google's Bard is a tamer AI chatbot compared to OpenAI's ChatGPT.

Google Bard, on the other hand, has been accused of being left-leaning. Citing such concerns surrounding the use of AI bots, Italy has become the first Western country to ban OpenAI's ChatGPT, according to a CNBC report. However, the AI company is sparing no effort to avoid getting banned in the country.

OpenAI to propose remedies to the Italian ban on ChatGPT

OpenAI is prepping to present a few measures to address the concerns of Italian authorities, who banned ChatGPT in Italy last week. The Italian agency claims the AI bot failed to check the age of ChatGPT users. Also, it states that Microsoft-backed OpenAI lacks a "legal basis" that could explain the huge collection and storage of personal data.

While the agency clarified it doesn't plan to stop the development of AI, it emphasised the importance of following rules that are meant to protect Italian and European citizens' personal data. During a video conference last week, OpenAI agreed to be more transparent as far as handling user data and verifying their ages is concerned.

The company will reportedly send the Italian agency, Garante, a document that comprises these measures. The data authority said it is willing to evaluate OpenAI's proposals, according to a report by The Hindu. Italy's recently imposed ban on the AI chatbot has piqued the interest of Europe's privacy regulators. They are currently trying to figure out whether more stringent rules are required to restrict the misuse of chatbots.

To recap, Garante banned an AI chatbot company known as Replika in February. The ban restricted Replika from using Italian users' personal data citing risks to emotionally fragile people and minors.