Article

CEO Asks ChatGPT How to Void $250 Million Contract, Ignores His Lawyers, Loses Terribly in Court

404 Media · 404media.co

The cautionary tale: Krafton's CEO followed ChatGPT over his own legal team and lost badly.

Open on 404media.co ↗

It answers 2 questions

  1. Where is AI legal help dangerous, what still needs a human lawyer?
  2. How should founders negotiate customer and vendor contracts with AI's help?

Read with it

  1. The definitive peer-reviewed study: even Westlaw and Lexis AI hallucinate, general chatbots far worse. hai.stanford.edu Article AI on Trial: Legal Models Hallucinate in 1 out of 6 (or More) Benchmarking Queries Stanford HAI / RegLab
  2. A live database of 1,300+ court cases involving AI-fabricated content, sobering to browse before trusting a citation. damiencharlotin.com Tool AI Hallucination Cases Database Damien Charlotin
  3. Explains the psychology of why smart professionals keep falling for confident nonsense. scientificamerican.com Article Lawyers know AI can hallucinate. They keep citing fake AI cases anyway. Scientific American
  4. A law firm's full-year audit of who got sanctioned for what, the taxonomy of AI legal failure. sternekessler.com Article AI Hallucinations in Court Filings and Orders: A 2025 Review of Sanctions Sterne Kessler
  5. Shows how judges now actively hunt for AI tells, raising the cost of careless AI use in anything filed. news.bloomberglaw.com Article AI-Faked Cases Become Core Issue Irritating Overworked Judges Bloomberg Law
  6. Even OpenAI's own product tells you to verify, with the fines ($5,000 to $15,500) to prove why. cronkitenews.azpbs.org Article As more lawyers fall for AI hallucinations, ChatGPT says: Check my work Cronkite News
eChai Partner Brands The partnership →