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flag Nippon Life sued OpenAI over AI-generated unlicensed legal advice that led to costly, baseless court actions.

flag Nippon Life Insurance Co. has sued OpenAI in Chicago federal court, alleging ChatGPT provided unlicensed legal advice that led a former disability claimant to terminate her lawyer and file meritless motions to reopen a settled case. flag The insurer claims the AI’s guidance violated Illinois law, caused significant legal costs, and contributed to court inefficiencies. flag The suit seeks $300,000 in compensatory and $10 million in punitive damages, arguing OpenAI failed to prevent legal use despite later updating policies. flag OpenAI has not responded, and the case remains pending.

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