Hallucinated Law: Big Firms Face Sanctions, Insurance Shocks, and New Ethics Rules as AI Misfires Mount

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The Access‑to‑Justice Paradox

AI’s speed can democratize legal help—Oklahoma’s Civil Justice Lab reported a 30% reduction in pro se filing errors after piloting a GPT‑powered guide vetted by volunteer lawyers. Still, the pilot’s designers hard‑coded a citation‑checker and limited the model to a curated caselaw set, underscoring that automation without curation is malpractice waiting to happen.

Looking Around the Corner

Experts forecast a “belt‑and‑suspenders” era where:

  • Generative output is cross‑validated against conventional databases;
  • Judges use their own AI tools to flag suspect citations before hearings;
  • Bar exams include competency questions on AI risk.

Ultimately, firms that treat AI as a scalpel rather than an autopilot stand to win both on efficiency and client trust.

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