• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechOpenAI

ChatGPT falsely accused a mayor of bribery when he was actually the whistleblower—now he wants to sue in what could be the first defamation case against a bot

Prarthana Prakash
By
Prarthana Prakash
Prarthana Prakash
Europe Business News Reporter
Down Arrow Button Icon
Prarthana Prakash
By
Prarthana Prakash
Prarthana Prakash
Europe Business News Reporter
Down Arrow Button Icon
April 5, 2023, 4:28 PM ET
A smartphone screen with ChatGPT written on it
OpenAI could face its first-ever defamation case against ChatGPT-generated responses.Nikolas Kokovlis—NurPhoto/Getty Images

OpenAI’s revolutionary chatbot ChatGPT is nearly as famous for its breathtaking speed (and seeming intelligence) as for its preponderance of mistakes. Now those mistakes are starting to have real-world ramifications. Take the case of Brian Hood, mayor of Hepburn Shire town, north of Melbourne in Australia: He is considering suing OpenAI for defamation after his constituents started telling him that ChatGPT accused him of serving prison time for bribery, Reuters reported Wednesday. In fact, Hood claims that not only has he never been in prison, but he was the whistleblower who flagged the bribery in the first place.

“He’s an elected official, his reputation is central to his role,” James Naughton, a partner at Gordon Legal, which is representing Hood, told Reuters. “It would potentially be a landmark moment in the sense that it’s applying this defamation law to a new area of artificial intelligence and publication in the IT space.”

The mayor was told by the public about ChatGPT misfiring accusations after the OpenAI chatbot claimed that Hood was among those found guilty in a bribery case that took place between 1999 and 2004, which involved an entity of the Reserve Bank of Australia, Note Printing Australia. It was quite the reverse: Yes, Hood worked at Note Printing Australia, but his lawyers say he was actually the one who flagged the bribes to foreign authorities, and he was not charged with the crime himself. Now Hood says he’s worried about his name being tarnished if inaccurate claims are spread via ChatGPT. 

In late March, Hood’s legal team wrote a letter of concern to OpenAI, asking them to make amends for the errors within 28 days, and filing a defamation case against OpenAI, if not. OpenAI has reportedly not responded to Hood yet. 

OpenAI did not immediately return Fortune’s request for comment.

Chatbots and accuracy

Hood suing OpenAI would be the first known defamation case related to responses generated by ChatGPT, which has been a viral sensation since its launch last November. The bot quickly gained scores of users, hitting 100 million monthly active users within two months of its launch and becoming the fastest-growing consumer platform in internet history.

But this wouldn’t be the first time OpenAI has run into claims of factual errors. In February, the company said it was working to address the biases on ChatGPT after it had received a barrage of complaints about inappropriate and inaccurate responses. Other chatbot platforms have also been faced with multiple instances of made-up facts. A study on Google’s Bard chatbot released Wednesday found that when prompted to produce widely known false narratives, the platform does so easily and frequently—in almost eight out of 10 controversial topics—without giving users a disclaimer. In fact, Bard made a mistake on its very first day post-launch, which investors greeted with a $100 billion wipeout for the stock of parent company Alphabet.

In more extreme cases, chatbots can even be fatal. Eliza, a chatbot developed by San Francisco–based Chai Research, reportedly nudged a Belgian man to end his life after he opened up to the bot about his worries. Such cases have raised concerns about how A.I. developments will be overseen as the technology becomes commonly used by people. 

For its part, OpenAI CEO Sam Altman said that ChatGPT, even with its new-and-upgraded GPT-4 technology, is “still flawed, still limited.”

“We believe that AI should be a useful tool for individual people, and thus customizable by each user up to limits defined by society,” OpenAI said in a February blog post. “This will mean allowing system outputs that other people (ourselves included) may strongly disagree with. Striking the right balance here will be challenging—taking customization to the extreme would risk enabling malicious uses of our technology and sycophantic AIs that mindlessly amplify people’s existing beliefs.”

The A.I. industry has also been calling for regulations about such tech tools, which are starting to be used for all sorts of things—from homework to assisting financial advisors. The U.S. government recently ruled that A.I.-generated art would not receive copyright protections, but no similar guidelines or laws are in place for text-based content produced by chatbots.

Subscribe to Well Adjusted, our newsletter full of simple strategies to work smarter and live better, from the Fortune Well team. Sign up today.
About the Author
Prarthana Prakash
By Prarthana PrakashEurope Business News Reporter
LinkedIn icon

Prarthana Prakash was a Europe business reporter at Fortune.

See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Most Popular

placeholder alt text
Economy
'Some form of crisis is almost inevitable': The $38 trillion national debt will soon be growing faster than the U.S. economy itself, watchdog warns
By Nick LichtenbergJanuary 22, 2026
1 day ago
placeholder alt text
Europe
Denmark offered to trade Greenland to the U.S. in 1910—and America thought it was crazy
By Steven Lamy and The ConversationJanuary 22, 2026
1 day ago
placeholder alt text
Politics
Jamie Dimon tells Davos: ‘You didn’t do a particularly good job making the world a better place’
By Eleanor PringleJanuary 21, 2026
2 days ago
placeholder alt text
Energy
Elon Musk warns the U.S. could soon be producing more chips than we can turn on. And China doesn’t have the same issue
By Sasha RogelbergJanuary 22, 2026
1 day ago
placeholder alt text
Success
Nvidia CEO Jensen Huang says ‘a lot’ of six-figure jobs in plumbing and construction are about to be unlocked because someone needs to build all these new AI centers
By Preston ForeJanuary 21, 2026
2 days ago
placeholder alt text
Success
McDonald’s CEO shares tough love career advice he’d give Gen Z and young millennial workers: ‘No one cares about your career’
By Orianna Rosa RoyleJanuary 22, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.


Latest in Tech

RetailWeather and forecasting
How Walmart is using AI to reroute essential supplies ahead of Winter Storm Fern
By Alex Vuocolo and Retail BrewJanuary 23, 2026
3 hours ago
trump speaks at davos
CryptoCryptocurrency
From Trump to Brian Armstrong to CZ, crypto was in the Davos spotlight like never before
By Carlos GarciaJanuary 23, 2026
5 hours ago
AICoding
Cursor used a swarm of AI agents powered by OpenAI to build and run a web browser for a week—with no human help. Here’s why developers are buzzing
By Sharon GoldmanJanuary 23, 2026
6 hours ago
Steve Jobs, Steve Wozniak, and Ronald Wayne's signatures on the bottom of Apple's founding contract.
SuccessWealth
Apple cofounder Ronald Wayne sold his 10% stake for $800 in 1976—today it’d be worth up to $400 billion
By Preston ForeJanuary 23, 2026
6 hours ago
amodei
AIDavos
CEOs at Davos were split on how bad the AI job wipeout will be
By Alyson ShontellJanuary 23, 2026
6 hours ago
InnovationJobs
‘Wake up, AI is for real.’ IMF chief warns of an AI ‘tsunami’ coming for young people and entry-level jobs
By Tristan BoveJanuary 23, 2026
8 hours ago