AI incident ·
Nippon Life Alleged ChatGPT Practiced Law Without a License in Illinois Disability Case
On this page 9 sections
In brief
An AI system built and deployed by Openai allegedly harmed Nippon Life Insurance Company Of America, Litigants In Nippon Life Disability Litigation and 1 other.
- Risk domain
- Socioeconomic & Environmental Harms
- Occurred
- Coverage
- 2 reports
What happened
Nippon Life sued OpenAI in Chicago, alleging ChatGPT acted as an unlicensed lawyer by helping a former disability claimant reopen a settled case and generate numerous meritless filings. The insurer claimed the conduct caused legal expense and abuse-of-process harms. OpenAI said the complaint lacks merit.
Laws on record for this risk area
Policy angle: Classified under Socioeconomic & Environmental Harms (Governance failure) in the MIT AI Risk Repository taxonomy; 4 instruments on record cover this risk area.
- Framework Convention on AI (CETS 225)
- India DPDP Act
- Law on Artificial Intelligence (2025)
- Law No. 132/2025 on artificial intelligence
Matched from the record's risk category and country to the instruments in effect recorded here: a law listed covers the area, which is not a finding that it applies to this incident. A reviewer can correct the match in the repository (data/external/incident_overrides.yaml).
News reports (2)
Titles link to the original publisher; report text is not reproduced here.
Who was involved
Classification (MIT AI Risk Repository taxonomy)
- Risk domain
- Socioeconomic & Environmental Harms
- Risk subdomain
- 6.5 Governance failure
- Causal entity
- AI
- Intent
- Unintentional
- Timing
- Post-deployment
- Harm level
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- Sectors
- —
- Countries
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Risk entries describing this failure mode
Entries from the MIT AI Risk Repository coded to subdomain 6.5.
- Mobility
"Despite the promise of streamlined travel, AI also brings concerns about who is liable in case of accidents and which ethical principles autonomous transportation agents should follow when making decisions with a potent...
- Liability issues in case of accidents
"Despite the promise of streamlined travel, AI also brings concerns about who is liable in case of accidents and which ethical principles autonomous transportation agents should follow when making decisions with a potent...
- Faster scientific progress makes it harder for governance to keep pace with development
"Exacerbating these problems is that faster scientific progress would make it even harder for governance to keep pace with the deployment of new technologies. When these technologies are especially powerful or dangerous,...
- Type 1: Diffusion of responsibility
Societal-scale harm can arise from AI built by a diffuse collection of creators, where no one is uniquely accountable for the technology's creation or use, as in a classic "tragedy of the commons".
- Products Liability Law
"Like manufactured items like soda bottles, mechanized lawnmowers, pharmaceuticals, or cosmetic products, generative AI models can be viewed like a new form of digital products developed by tech companies and deployed wi...
- Institutional responsibilities
"Efforts to deploy advanced assistant technology in society, in a way that is broadly beneficial, can be viewed as a wicked problem (Rittel and Webber, 1973). Wicked problems are defined by the property that they do not...
- Difficult to develop metrics for evaluating benefits or harms caused by AI assistants
"Another difficulty facing AI assistant systems is that it is challenging to develop metrics for evaluating particular aspects of benefits or harms caused by the assistant – especially in a sufficiently expansive sense,...
- General Evaluations (Biased evaluations of encoded human values)
"Encoded human values in AI models that are easier to evaluate might be preferred for inclusion in evaluations over those that are more difficult to measure [13]. This might come at the expense of more desirable but hard...
Incidents in the same risk subdomain
- OpenAI Allegedly Did Not Alert RCMP After ChatGPT Flagged Violent Chats Before British Columbia School Shooting
- Remotely Operated Taser-Armed Drones Proposed by Taser Manufacturer as Defense for School Shootings in the US
Other incidents involving Openai
- ChatGPT Reportedly Found to Reproduce Protected German Lyrics in Copyright Case
- Alleged Harmful Health Outcomes Following Reported Use of Purported ChatGPT-Generated Medical Advice in Hyderabad
- Lawsuit Alleged ChatGPT (GPT-4o) Encouraged Colorado Man's Suicide After Prolonged 'AI Companion' Chats
- Large-Scale Mental Health Crises Allegedly Associated with ChatGPT Interactions
- OpenAI ChatGPT Models Reportedly Jailbroken to Provide Chemical, Biological, and Nuclear Weapons Instructions
- Family Reportedly Discovers ChatGPT Logs Detailing Suicidal Ideation Prior to Daughter's Death
Source record: incident #1415 on the AI Incident Database · all 2 reports