Why Lawyers and Courts Face the Threat of False Data

Modern technology is actively transforming all aspects of our lives, including legal proceedings. However, the use of artificial intelligence (AI) in legal practice is becoming a source of new challenges. The recent high-profile case involving the law firm Morgan & Morgan and retail giant Walmart $WMT vividly illustrates how AI can undermine trust in the justice system.

Fictional Precedents in Real Cases

American law firm Morgan & Morgan, specializing in personal injury cases, found itself in the center of a scandal. More than 1,000 of the firm's attorneys received an urgent email warning them: the use of fictitious precedents created by artificial intelligence is unacceptable and could lead to dismissal.

Key Events:

1. A federal judge in Wyoming accused two Morgan & Morgan lawyers of citing fictitious cases in a lawsuit against Walmart.

2. One of the attorneys admitted that he used AI to prepare the documents, apologized, and called it an inadvertent mistake.

3. The situation highlighted the danger of automating processes without proper oversight.

A Nationwide Issue

The Morgan & Morgan case is far from isolated. According to a Reuters investigation, over the past two years, at least seven cases in the United States have involved lawyers facing consequences for using unreliable information generated by chatbots like ChatGPT.

Common Problems:

- Creation of fake legal precedents.

- Inclusion of unreliable or incorrect data in official legal documents.

Notably, this issue affects all types of lawsuits, from corporate disputes to everyday claims.

Why the Walmart vs. Morgan & Morgan Case Matters

Unlike other similar legal stories, the case involving Walmart gained public attention due to the involvement of a major corporation and one of the largest law firms in the U.S. This incident brings to light a crucial issue in modern justice: Are lawyers and courts ready to use AI without questioning its results?

Factors Enhancing the Case's Significance:

- The reputation of Morgan & Morgan as one of the leading law firms.

- The vast market influence of Walmart.

The legal proceedings have sparked discussions on the ethics and responsibility in utilizing cutting-edge technologies.

Lessons from AI Cases in the Legal Field

In the context of AI development, several risks have emerged that today's legal professionals and courts must address.

Here’s what is essential to consider:

- Risks for Lawyers: Including fictional data can harm a lawyer's reputation and lead to disciplinary action, including dismissal.

- Challenges for Courts: Judges face the need for thorough review of materials to prevent the use of unreliable information.

Some experts compare AI's impact on jurisprudence to the invention of the printing press for legislation, underscoring the scale of this transformation.

Conclusion

The Morgan & Morgan vs. Walmart case is just the tip of the iceberg. It demonstrates the necessity for strict standards in the use of AI in legal practice. While artificial intelligence opens new horizons, its inability to guarantee data accuracy will remain a significant challenge for the industry for a long time.