Authored by Brayden Lindrea via CoinTelegraph.com,

Wall Street law firm Sullivan & Cromwell has apologized to a federal judge after submitting a court filing that contained around 40 incorrect citations and other errors caused by AI hallucinations.

“We deeply regret that this has occurred,”Andrew Dietderich, co-head of Sullivan & Cromwell’s global restructuring team,wroteFriday in a letter to Chief Judge Martin Glenn of the US Bankruptcy Court for the Southern District of New York.

“The Firm and I are keenly aware of our responsibility to ensure the accuracy of all submissions including under Local Bankruptcy Rule 9011-1(d), and I take responsibility for the failure to do so,” he said of an emergency motion filed nine days earlier.

Excerpt from Andrew Dietderich’s letter toChief JudgeMartin Glenn.Source:Sullivan & Cromwell

The incident highlights the riskAI toolscan pose in high-stakes professional work without proper oversight.A database managed by legal technologist Damien Charlotin has recorded1,334incidents ofAI hallucinationsin court filings around the world, including more than 900 in the US.

Charlotin pointed out that most of these hallucinations involve fabricated citations, though AI-generated legal arguments have also occasionally been identified.

Dietderich said Sullivan & Cromwell has policies in place for the use ofAI tools,which include a review of the citations it uses, but said the policies weren’t followed.

Sullivan & Cromwell is one of the largest law firms in the US by revenue, ranking 30th on the AmLaw Global 200. The firm also representedcrypto exchange FTXin its bankruptcy case.

Dietderich said thelaw firmtook “immediate remedial measures,” including a full review of the circumstances that led to the errors.

Source: ZeroHedge News