Man Files Defamation Lawsuit Against OpenAI After Chatbot Falsely Accuses Him of Embezzlement

Mark Walters is suing OpenAI for libel after its ChatGPT AI told a journalist Walters embezzled money from a gun rights group called The Second Amendment Foundation.
ChatGPT generated false details about a lawsuit that didn't exist, implicating Walters as the treasurer and CFO of SAF, a position he doesn't actually hold.
Walters argues that companies developing AI systems like ChatGPT should face consequences when their bots spread misinformation that causes harm.
Experts say the lawsuit highlights the need for AI regulation as "hallucinations" in which bots fabricate events pose risks.
If Walters wins, it could open the door to more lawsuits testing whether AI companies can be held liable for their systems' inaccurate and damaging output.