Top Wall Street Law Firm Embarrassed As AI Hallucinations Derail Bankruptcy Motion
Sullivan & Cromwell, a top Wall Street law firm, filed a bankruptcy motion with inaccuracies caused by AI 'hallucinations', including invented case names and distorted references to the US Bankruptcy Code. The firm apologized and filed a corrected version after opposing lawyers pointed out the mistakes.
Sullivan & Cromwell, a prestigious Wall Street law firm, admitted to filing a bankruptcy motion with multiple inaccuracies caused by AI 'hallucinations'. The errors included invented case names, made-up quotes, and distorted references to the US Bankruptcy Code. The firm acknowledged that its internal protocols for using AI tools were not properly followed. Lawyers from the opposing side, Boies Schiller Flexner, pointed out the mistakes, prompting Sullivan & Cromwell to file a corrected version and apologize. The case involves liquidators from the British Virgin Islands handling the collapse of Prince Global Holdings, linked to allegations against its founder, Chen Zhi. Sullivan & Cromwell has an enterprise license for OpenAI's ChatGPT and charges over $2,000 per hour for high-stakes bankruptcy work.
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