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

Trendingnow

1

OpenAI says its AI models secretly broke out of a secure test environment and hacked into AI company Hugging Face in order to cheat on an evaluation

2

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

3

Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem

1

OpenAI says its AI models secretly broke out of a secure test environment and hacked into AI company Hugging Face in order to cheat on an evaluation

2

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

3

Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem
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
Add Fortune on Google for similar content.

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
Add Fortune on Google for similar content.

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
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • 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
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in Tech

‘It’s called StreetEasy, not StreetHard’: Mamdani cracks down on scourge of ‘housefishing’ and ‘real estate slop’
Real EstateHousing
‘It’s called StreetEasy, not StreetHard’: Mamdani cracks down on scourge of ‘housefishing’ and ‘real estate slop’
By Tatiana SatauaJuly 22, 2026
3 hours ago
As Washington panics about Chinese AI, Jensen Huang says open-source models like Kimi are ‘excellent’ and should be embraced, not banned
AIChina
As Washington panics about Chinese AI, Jensen Huang says open-source models like Kimi are ‘excellent’ and should be embraced, not banned
By Marco Quiroz-GutierrezJuly 22, 2026
3 hours ago
OpenAI CEO Sam Altman sits next to U.S. President Donald Trump.
AITech regulation
OpenAI’s rogue hacking incident was a warning shot. Will it be a wake-up call to finally create AI safety regulation?
By Jeremy Kahn and Emily ForliniJuly 22, 2026
3 hours ago
Man holding his hands open
InvestingStock
A new group of stocks is transforming global equities markets. Meet ‘Memi,’ the $3 trillion sector fueled by AI’s insatiable hunger for memory chips
By Amanda GerutJuly 22, 2026
4 hours ago
Sam Altman getting into a car
CybersecurityOpenAI
OpenAI’s models went rogue and hacked Hugging Face. It’s a wake-up call, experts say, but more concerning behavior may be next
By Beatrice NolanJuly 22, 2026
4 hours ago
Northrop Grumman launches private robot mission to strap jetpacks on aging satellites
InnovationSpaceX
Northrop Grumman launches private robot mission to strap jetpacks on aging satellites
By Marcia DunnJuly 22, 2026
6 hours ago

Most Popular

OpenAI says its AI models secretly broke out of a secure test environment and hacked into AI company Hugging Face in order to cheat on an evaluation
Cybersecurity
OpenAI says its AI models secretly broke out of a secure test environment and hacked into AI company Hugging Face in order to cheat on an evaluation
By Jeremy Kahn and Emily ForliniJuly 21, 2026
1 day ago
Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
Success
Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
By Sasha RogelbergJuly 20, 2026
2 days ago
Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem
AI
Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem
By Eva RoytburgJuly 21, 2026
1 day ago
The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind
Real Estate
The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind
By Nick LichtenbergJuly 22, 2026
7 hours ago
Despite a $156 million contract, Knicks star Jalen Brunson still calls his parents for financial advice any time he makes a big purchase
Success
Despite a $156 million contract, Knicks star Jalen Brunson still calls his parents for financial advice any time he makes a big purchase
By Emma BurleighJuly 21, 2026
1 day ago
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
Success
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
By Sydney LakeJuly 20, 2026
2 days 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.