AI hallucinations found in high-profile Wall Street law firm filing

The elite Wall Street law firm Sullivan & Cromwell has issued a formal apology to a New York federal judge after AI-generated "hallucinations" were discovered in a high-profile court filing. The errors, which included misquoted bankruptcy codes and fake case citations, were uncovered by opposing counsel in a case involving the multibillion-dollar Prince Group. Despite having strict AI policies in place, the firm admitted that internal review processes failed to catch the fabrications, highlighting the persistent risks of using large language models for complex legal research.

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