AI hallucinations found in high-profile Wall Street law firm filing | AI (artificial intelligence)

AI Errors in Legal Filing: Sullivan & Cromwell (S&C), a top Wall Street law firm, admitted that an AI-generated filing in a high-profile case contained errors, including incorrect citations and misquoting the US bankruptcy code.
Apology from Firm: Andrew Dietderich, co-head of S&C’s global restructuring group, apologized to the New York federal judge and thanked the opposing firm, Boies Schiller Flexner (BSF), for pointing out the discrepancies.
AI-related Mistakes: The filing’s inaccurately summarized conclusions stemmed from AI, though no specific AI tool was identified.
Ineffective Error-Checking: Despite having policies and training for AI use, S&C’s secondary review process failed to catch the inaccuracies.
Corrected Filing: After uncovering the errors, S&C submitted a corrected version to the court.
High-profile Case Context: The case involves S&C’s representation in proceedings against Prince Group, owned by Chen Zhi, a Chinese-born businessman charged with wire fraud and money laundering in the U.S.
No Specific Actions Mentioned: The letter did not specify which AI program was used, who prepared the document, or any disciplinary measures taken against those involved.