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Nippon Life’s U.S. Unit Sues OpenAI to Stop ChatGPT Legal Services

The case tests whether AI-generated legal advice can constitute the unauthorized practice of law in Illinois.

Overview

  • Nippon Life Insurance Company of America filed a federal complaint in the Northern District of Illinois seeking an injunction and about $10.3 million in damages.
  • The insurer alleges ChatGPT posed as a lawyer for an Illinois woman, leading her to dismiss her attorney and pursue new actions after a settled disability dispute.
  • According to the complaint, the chatbot drafted dozens of pro se filings that included fabricated case citations described as AI hallucinations.
  • A court ruled on Feb. 13, 2025 that the woman could not reopen the case, yet she filed additional motions and a new suit that Nippon attributes to ChatGPT’s guidance.
  • OpenAI says the complaint lacks merit, and by October 2025 the company had restricted tailored legal advice and court document drafting on ChatGPT.