Law
fromABA Journal
2 days agoSanctions ramping up in cases involving AI hallucinations
Monetary sanctions against attorneys for AI-generated hallucinations in case documents are increasing as courts take these issues more seriously.
I looked at the config and noticed the customer did not have a default route set. He wasn't sure if that was the problem, so he made some changes he thought might be useful. The router Caleb worked on then rebooted, which he expected. But when it restarted, its previous configuration was gone.
Costa's then-manager told him that ServiceNow would not pay this commission because the Sales Compensation Department had concluded that Costa had 'overachieved to a degree that was outside normal' in relation to his sales quota. In other words, ServiceNow believed Costa had made too much money, notwithstanding that his commission was only a small percentage of the revenue recognized and received by ServiceNow.
If your partner in Munich mishandles customer data, or your reseller in Paris uses a "black box" AI tool to generate deceptive ads, it isn't just their reputation on the line. It's yours. With the EU AI Act now in full swing and GDPR entering its "mature enforcement" era, the distance between a partner's mistake and your company's $20 million fine has never been shorter.
New data is reinforcing a structural shift in how AI systems access publisher content: AI models are increasingly scraping publisher content, regardless of bot-blocking measures or content licensing deals meant to control usage, improve attribution or drive referral traffic. New research from analytics firms and bot-tracking companies shows AI tools are increasingly crawling publisher sites as inputs for AI-generated summaries and training, while sending back only limited referral traffic.
Research analyzing 4,700 leading websites reveals that 64% of third-party applications now access sensitive data without business justification, up from 51% in 2024. Government sector malicious activity spiked from 2% to 12.9%, while 1 in 7 Education sites show active compromise. Specific offenders: Google Tag Manager (8% of violations), Shopify (5%), Facebook Pixel (4%).
Never feel that you are totally safe. In July 2025, one company learned the hard way after an AI coding assistant it dearly trusted from Replit ended up breaching a "code freeze" and implemented a command that ended up deleting its entire product database. This was a huge blow to the staff. It effectively meant that months of extremely hard work, comprising 1,200 executive records and 1,196 company records, ended up going away.
This Privacy Notice applies to all personal information processed by CoinDesk, including its affiliates and subsidiaries (" CoinDesk," " we," " us," or " our "). It covers the information CoinDesk collects through the websites, mobile applications, electronic devices, all other products and services we provide, any other services that display this Privacy Notice, all of the associated content, functionalities, and advertising, and when you communicate with us by phone, email, or otherwise (collectively, the " Services ").
Consumers have grown so weary of AI-generated content and straight-up slop, they're taking extra time to find work made by real people. And some brands are going even further. Instead of airbrushing flaws, they're celebrating them - even going so far as to seek out imperfections in the influencer marketing deals they're planning. The dirty countertop or overflowing garbage can in the background is no longer grounds for a reshoot; it's a way to let viewers know that what they're watching is, well, real.
Meta Platforms Inc. convinced a federal appeals court to certify a question about whether its terms of service and community standards created an obligation for the company to combat scam advertisements. Whether the terms of service and community standards impose a legally enforceable obligation on Meta is a question with substantial grounds for differing opinions, the US District Court for the Northern District of California said Thursday.
Last year, Google decided not to deprecate third-party cookies in Chrome after all. This year, Google decided to jettison its backup plan and not even launch a planned choice prompt for cookies in its browser. By October, the Privacy Sandbox was all but kaput. The UK's Competition and Markets Authority released Google from its Privacy Sandbox commitments and - Psych. I'm done writing about third-party cookie deprecation, guys. Let's move on, fur real.
How do privacy regulators decide which companies to poke? Often, it's a consumer complaint. Other times, it's a headline. And, sometimes, it's just personal. Regulators are consumers, too, after all. But it's important to remember that every brush with a regulator doesn't turn into a full-blown case, said privacy attorney Tyler Bridegan. Bridegan spent nearly two years as director of privacy and tech enforcement for the Texas attorney general's office. He left government work and returned to private practice in October as a partner at Womble Bond Dickinson.