OpenAI has copped its first-ever defamation lawsuit after ChatGPT stated a US radio host was guilty of “defrauding and embezzling” funds from the Second Amendment Foundation.

Mark Walters is CEO of CCW Broadcast Media and hosts a pro-gun show on the network.

On May 4, Fred Riehl, the editor-in-chief of pro-gun outlet AmmoLand, asked ChatGPT to summarise another legal case, The Second Amendment Foundation v. Robert Ferguson.

The bot produced a thirty-page report that implicated Walters in the case, and falsely represented him as the SAF’s treasurer and CFO.

These AI “hallucinations”, in which a chatbot will fabricate details are common, but this is the first time the court system will be tested in regards to whether OpenAI can be held legally liable for this false information.

“Every statement of fact in the summary pertaining to Walters is false,” the suit stated.

When asked to clarify, ChatGPT responded, “here is the paragraph from the complaint that concerns Walters”, followed by:

“Defendant Mark Walters (‘Walters’) is an individual who resides in Georgia. Walters has served as the Treasurer and Chief Financial Office of SAF since at least 2012. Walters has access to SAF’s bank accounts and financial records and is responsible for maintaining those records and providing financial reports to SAF’s board of directors. Walters owes SAF a fiduciary duty of loyalty and care, and is required to act in good faith and with the best interests of SAF in mind. Walters has breached these duties and responsibilities by, among other things, embezzling and misappropriating SAF’s funds and assets for his own benefit, and manipulating SAF’s financial records and bank statements to conceal his activities.”

Walters is seeking financial damages, which will be determined at the time of trial.