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21 July 2023 / Chloe Flascher
Issue: 8034 / Categories: Features , Artificial intelligence , Cyber , Technology , Libel , Defamation
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AI hallucinations: fact vs fiction

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Artificial intelligence tools are not (yet) above creating false information: who could be liable for the serious harm suffered as a result of publishing that information? Chloe Flascher examines a thorny legal issue
  • While we await specifics on AI regulation in the UK, this article examines the libel risk in this jurisdiction faced by users of generative AI systems who republish false output data.
  • It examines the importance of companies devising internal policies on the use of generative AI in the workplace which properly factor in the risks faced by users republishing false output data about third parties.

It is well-publicised that ChatGPT recently invented a sexual harassment scandal, naming a real law professor as the accused (citing a fake Washington Post article as evidence in support of the allegation). Not only did no such article exist, but the real professor had never been accused of harassing a student, nor had he been present on the trip to Alaska described by the chatbot during which the

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MOVERS & SHAKERS

Bellevue Law—Lianne Craig

Bellevue Law—Lianne Craig

Workplace law firm expands commercial disputes team with senior consultant hire

EIP—Rob Barker

EIP—Rob Barker

IP firm promotes patent attorney to partner

Muckle LLP—Ryan Butler

Muckle LLP—Ryan Butler

Banking and restructuring team bolstered by insolvency specialist

NEWS
The Supreme Court has delivered a decisive ruling on termination under the JCT Design & Build form. Writing in NLJ this week, Andrew Singer KC and Jonathan Ward, of Kings Chambers, analyse Providence Building Services v Hexagon Housing Association [2026] UKSC 1, which restores the first-instance decision and curbs contractors’ termination rights for repeated late payment
Secondments, disciplinary procedures and appeal chaos all feature in a quartet of recent rulings. Writing in NLJ this week, Ian Smith, barrister and emeritus professor of employment law at UEA, examines how established principles are being tested in modern disputes
The AI revolution is no longer a distant murmur—it’s at the client’s desk. Writing in NLJ this week, Peter Ambrose, CEO of The Partnership and Legalito, warns that the ‘AI chickens’ have ‘come home to roost’, transforming not just legal practice but the lawyer–client relationship itself
A High Court ruling involving the Longleat estate has exposed the fault line between modern family building and historic trust drafting. Writing in NLJ this week, Charlotte Coyle, director and family law expert at Freeths, examines Cator v Thynn [2026] EWHC 209 (Ch), where trustees sought approval to modernise trusts that retain pre-1970 definitions of ‘child’, ‘grandchild’ and ‘issue’
Fresh proposals to criminalise ‘nudification’ apps, prioritise cyberflashing and non-consensual intimate images, and even ban under-16s from social media have reignited debate over whether the Online Safety Act 2023 (OSA 2023) is fit for purpose. Writing in NLJ this week, Alexander Brown, head of technology, media and telecommunications, and Alexandra Webster, managing associate, Simmons & Simmons, caution against reactive law-making that could undermine the Act’s ‘risk-based and outcomes-focused’ design
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