Mealey's Artificial Intelligence
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July 31, 2023
Pacing, Discovery At Issue In Artificial Intelligence $100 Share Sale Case
SAN FRANCISCO — Parties to a suit claiming that the cofounder of artificial intelligence Stability AI was duped into selling billions of dollars in shares for $100 briefed the need to expedite the case, limited early discovery, with the defendant saying in a July 28 brief that the plaintiff unjustly delayed filing the case and seeks to escape federal rules.
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July 25, 2023
Cigna Denies Claims In Bulk Through Algorithm, California Class Action Alleges
SACRAMENTO, Calif. — Health insurer Cigna Corp.’s algorithm instantly rejects hundreds of thousands of claims without ever reviewing them and with the company’s knowledge that only a miniscule percentage of claimants will ever challenge the decisions, insureds allege in a July 24 class action filed in the U.S. District Court for the Eastern District of California alleging violation of California regulations and the state’s unfair competition law (UCL).
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July 25, 2023
OpenAI Removes, Wants Dismissal Of ChatGPT Made-Up Lawsuit Defamation Case
ATLANTA — After removing a case, artificial intelligence company OpenAI LLC asked a federal judge in Georgia to dismiss with prejudice the defamation case claiming that ChatGPT created a fake complaint, saying that inaccuracies are inherent in the nature of the program and that its user agreement puts responsibility for final output on the user.
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July 24, 2023
Study Finds Some ChatGPT Abilities Degrading Over Time
ITHACA, N.Y. — ChatGPT’s performance of some tasks has gotten “substantially worse over time,” according to a study by three researchers published at open-access pre-print repository ArXiv on July 18.
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July 24, 2023
Parties To AI Image Discovery Spat Detail Dispute Over Jurisdiction
WILMINGTON, Del. — Parties to a federal court case in Delaware filed letter briefs over a discovery dispute involving allegations that an artificial intelligence company is withholding evidence about jurisdiction and the relationship between its United Kingdom and Delaware entities that goes directly to the alter ego allegations.
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July 19, 2023
COMMENTARY: International Arbitration Experts Discuss The Impact Of Artificial Intelligence On International Arbitration
[Editor’s Note: Copyright © 2023, LexisNexis. All rights reserved.]
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July 21, 2023
OpenAI Removes Case Alleging ChatGPT Defamed Man With Made-Up Lawsuit
ATLANTA — Artificial intelligence company OpenAI LLC removed to a federal court in Georgia a case claiming that its ChatGPT program created a fake complaint and told a reporter that gun-rights radio personality Mark Walters committed financial misconduct, even though Walters has no association with either party or the case.
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July 21, 2023
AI Co-Founder Says He Was Duped Into Selling Billions Worth Of Shares For $100
SAN FRANCISCO — The majority shareholder of an artificial intelligence (AI) image company portrayed the business as “essentially worthless,” tricking his partner into selling what would now be a half-billion-dollar stake in the enterprise for $100, the company’s co-founder and former minority shareholder alleges in a complaint in California federal court.
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July 19, 2023
Party Details Dispute Over Jurisdiction, Alter Ego In AI Image Discovery Spat
WILMINGTON, Del. — An artificial intelligence company is withholding evidence about jurisdiction and the relationship between its United Kingdom and Delaware entities that goes directly to the alter ego allegations, an image company told a federal judge in Delaware on July 18.
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June 27, 2023
COMMENTARY: Time For Lawyers To Become “Prompt Scientists”? – How AI Is Being Immersed Into The Legal Practice
By Roy Hadley
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July 13, 2023
Customer, McDonald’s: AI Voiceprint Class Lawsuit Dismissed With Prejudice
CHICAGO — McDonald’s Corp. and a customer who alleged in a putative class lawsuit that the franchisor violates the Illinois Biometric Information Privacy Act (BIPA) by collecting voiceprints to place drive-through orders filed a stipulation of dismissal on July 12 in a federal court in Illinois.
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July 13, 2023
7th Circuit: Patient Lacks Standing To Sue For Health Data Sharing With Google
CHICAGO — Affirming the dismissal of an Illinois man’s putative privacy and contractual class claims over a hospital’s health data-sharing agreement with Google LLC in conjunction with a joint artificial intelligence research venture, a Seventh Circuit U.S. Court of Appeals panel found that the one-time patient failed to plead any concrete harm to establish his standing to sue under Article III of the U.S. Constitution.
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July 13, 2023
Google Accused Of Stealing Data From Gmail Accounts To Train AI Chatbot
SAN FRANCISCO — Eight anonymous plaintiffs filed a putative class action accusing Alphabet Inc., Google LLC and their AI subsidiary of violating California’s unfair competition law (UCL), copyright law and privacy laws by “stealing everything ever created and shared on the internet by hundreds of millions of Americans,” including the plaintiffs’ private data contained in their private Google email accounts, to train their AI chatbot.
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July 13, 2023
Energy Company Overstated AI Platform’s Role In Business, Class Suit Alleges
SAN FRANCISCO — An energy storage company touted the high margins permitted by, and the desirability of, its artificial intelligence platform, only to disclose that its financial results were “dramatically worse” than the guidance it gave just a few months earlier, according to a securities class action filed in California federal court.
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July 12, 2023
AI Drug Company Overstated Prospects, Securities Class Alleges
BRIDGEPORT, Conn. — A company harnessing artificial intelligence (AI) to identify new uses for existing medications continued to release positive statements about its upcoming drug and failed to disclose that it lacked the necessary controls and that underlying problems with clinical trials would delay the release, a securities class action in a federal Connecticut court alleges.
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July 11, 2023
Judge Seals AI Bus Lane Obstruction Patent Dispute Filings
NEW YORK — A federal judge granted a motion to seal, directing the defendants in a patent infringement case to seal original documents in a case alleging infringement of patents on artificial intelligence technology designed to identify bus lane obstructions. A motion seeking a preliminary injunction is pending.
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July 11, 2023
Content Companies Say Artists Misunderstand How AI Apps Work
SAN FRANCISCO — Three companies engaged in artificial intelligence content generation told a federal judge in California that artists accusing them of stealing original works misstate copyright law and misunderstand how the programs in question work.
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July 10, 2023
Black Homeowners Say State Farm’s AI Discriminates Against Them
CHICAGO — State Farm Fire & Casualty Co. trained the artificial intelligence at the heart of its claims processing system with historically biased housing and claims data, making the program much more likely to flag claims by black homeowners and causing delays in repairs and other harms, plaintiffs tell a federal judge in Illinois in opposing dismissal of a class action.
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July 10, 2023
Sarah Silverman, Writers Sue AI Companies For Using Copyrighted Works
SAN FRANCISCO — The actress and comedian Sarah Silverman and two writers on July 7 filed a putative class action claiming that they are the owners of copyrighted works that were acquired by OpenAI Inc. and affiliated companies and used as part of the datasets with which they trained the ChatGPT AI chatbot, in violation of copyright infringement laws and California’s unfair competition law (UCL).
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July 06, 2023
Plaintiffs: Google’s Own AI Warns Against Its Health Data Practices
SAN JOSE, Calif. — Google LLC’s artificial intelligence supports the conclusion that websites governed by California or federal health privacy law should not use the company’s analytics platform, anonymous plaintiffs who claim that the company unlawfully tracked, collected and monetized private health information allege in a first amended complaint that includes claims under the California unfair competition law (UCL).
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July 05, 2023
OpenAI Contests California Competition, Copyright Claims
OAKLAND, Calif. — Plaintiffs claiming that artificial intelligence programs produce licensed materials posted to GitHub without attribution have not shown the programs produced the code for anyone but themselves or that copyright law would not preempt their case and have not adequately pleaded their claims under the California unfair competition law (UCL), OpenAI tells a federal judge in California in a motion to dismiss an amended complaint.
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June 30, 2023
Pretrial Briefs Detail Paths Forward For Dissolving AI Radiology Company
WILMINGTON, Del. — The part owner of a health care company who saw promise in the use of artificial intelligence to automate the detection of abnormalities in radiology reports told a Delaware court in a pretrial brief that immediate sale of the dissolving company is in its best interests, not waiting for a hypothetical better offer or improvement in business conditions.
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June 30, 2023
Authors Say AI Chatbot Companies Use Copyrighted Work Without Credit
SAN FRANCISCO — Two authors filed a putative class action accusing the companies that created ChatGPT and other AI chatbots of copyright infringement, unjust enrichment and violating California’s unfair competition law (UCL) by using their copyrighted works of fiction in the training datasets for their software without permission or compensation.
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June 29, 2023
AI Chatbot Companies Accused Of Stealing Millions Of Users’ Data In Class Suit
SAN FRANCISCO — Sixteen anonymous plaintiffs on June 28 filed a putative class action against companies that created ChatGPT and other AI chatbots, including Microsoft Corp., accusing them of violating federal privacy laws and state consumer protection laws, including California’s unfair competition law (UCL), by collecting “sensitive information from millions of individuals” to train their chatbots.
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June 28, 2023
Bankruptcy Judge Consults ChatGPT, Abandons Efforts After Finding Fake Citations
FORT LAUDERDALE, Fla. — A federal bankruptcy judge said that in crafting an opinion, he consulted ChatGPT for an essay on the impact of social media on product marketing, only to abandon the endeavor when his own research showed that the artificial intelligence program fabricated citations.