New research from Tel Aviv University, Technion, and Intuit reveals a technique called "HalluSquatting" that exploits AI hallucinations. Hackers can register fake software repository links predicted by AI, potentially leading to AI-enabled botnets and compromising computers.
KPMG's report on AI, "Total Experience: Redefining Excellence in the Age of Agentic AI," contained numerous AI hallucinations, including fake citations and inaccurate claims about companies like Emirates, UBS, and Swiss Federal Railways. GPTZero, an AI content detection tool maker, found that most citations were inaccurate or fabricated, and about half of the paper's claims were false. KPMG has since withdrawn the report and is investigating.
Attorneys admitted to a federal court that they submitted fabricated quotations generated by AI in a lawsuit against the Trump administration over federal layoffs. The mistake occurred when using Anthropic's Claude Console, leading to "phantom quotations."
Sullivan & Cromwell, one of America's largest law firms, has apologized to a federal bankruptcy judge for AI-generated errors in a court filing. The firm submitted a letter on April 18 to the US Bankruptcy Court for the Southern District of New York, admitting that an emergency motion in the Prince Global Holdings bankruptcy case contained fictitious case names, fabricated quotes, and invented statutory provisions. Andrew Dietderich, founder of S&C's restructuring group, apologized on behalf of the firm, stating they had not followed protocols in preparing the document. The firm, which holds an enterprise license for ChatGPT, noted it instructs lawyers to 'trust nothing and verify everything' and that failure to verify AI output violates firm policy.
Sullivan & Cromwell, a top Wall Street law firm, has apologized to a New York federal judge for AI-generated errors in a court filing. The firm admitted to misquoting the US bankruptcy code and incorrectly citing cases in a filing made on April 9. The errors were uncovered by rival firm Boies Schiller Flexner. The case involves liquidators from the British Virgin Islands pursuing actions against Prince Group, owned by Chinese-born businessman Chen Zhi, who faces US charges of wire fraud and money laundering related to alleged forced-labour scam compounds in Cambodia.
