Wall Street Law Firm Apologises for AI Hallucinations in Court Filing
The elite Wall Street law firm Sullivan & Cromwell has issued a formal apology to a federal judge after admitting that a major court filing contained errors resulting from artificial intelligence hallucinations. In a letter to New York federal judge Martin Glenn on Saturday, Andrew Dietderich, co-head of the firm's global restructuring group, expressed deep regret for the string of mistakes, which included misquoting the US bankruptcy code and citing cases incorrectly.
Errors Uncovered by Rival Law Firm
The inaccurate citations were discovered by the law firm Boies Schiller Flexner, which was also working on the high-profile Prince Group case. The errors appeared in a filing made on 9 April, where Sullivan & Cromwell, which employs more than 900 lawyers and boasts one of the top reputations for corporate work in the United States, submitted inaccurately summarised conclusions from other cases using AI technology.
"We deeply regret that this has occurred," said Dietderich in the letter. "I apologise on behalf of our entire team. I also called BSF on Friday to thank them for bringing this matter to our attention and apologise to them directly as well."
AI Policies Not Followed
The firm stated that it maintains comprehensive policies and training requirements governing the use of AI tools in legal work, designed to catch any potential errors. However, the letter revealed that those AI policies were not followed in this instance, and a secondary review process also failed to identify the inaccurate citations generated by the artificial intelligence system.
Sullivan & Cromwell later filed a corrected version with the court. While lawyers are not prohibited from using AI in their work, they are ethically bound to ensure the accuracy of all court submissions. The letter did not specify which AI program was used to help produce the court filing, nor did it identify which lawyers prepared the document or whether any disciplinary action had been taken against them as a result of the AI mistakes.
Background of the Prince Group Case
The case involved Sullivan & Cromwell's representation of liquidators appointed by legal authorities in the British Virgin Islands, who are engaged in actions against Prince Group. The company is owned by Chinese-born businessman Chen Zhi, who was charged last year by US prosecutors with wire fraud and money laundering.
Prosecutors alleged that Chen directed "Prince Group's operation of forced-labour scam compounds across Cambodia ... that stole billions of dollars from victims in the United States and around the world." In a statement last year, Prince Group denied that Chen had committed any wrongdoing and called the allegations baseless.
Separately, US prosecutors filed a legal action to seize nearly $9 billion worth of bitcoin, which authorities alleged represented the proceeds of Prince Group's criminal activity. Chen was arrested earlier this year in Cambodia and extradited to China upon the request of Chinese authorities.
Implications for Legal Profession
This incident highlights the growing challenges and risks associated with the integration of artificial intelligence into professional legal work. As law firms increasingly adopt AI tools to streamline research and document preparation, the necessity for rigorous oversight and adherence to established protocols becomes paramount to maintain the integrity of judicial proceedings.
The apology from Sullivan & Cromwell underscores the ethical responsibilities that legal professionals bear when utilising advanced technologies, emphasising that human verification remains essential to prevent such errors from compromising the accuracy of court filings.
