Last month, a Georgia state court granted OpenAI’s motion for summary judgment, dismissing a defamation suit brought by a nationally syndicated radio show host.

In the suit, Mark Walters v. OpenAI LLC, 23-A-04860-2 (Sup. Ct. Gwinnett Cty, GA), the plaintiff alleged that that the ChatGPT tool, developed by OpenAI, defamed him when it presented false information about him to a journalist.  According court’s order, the journalist used the AI tool to summarize a complaint while writing an article about an unrelated lawsuit.  The summary provided by ChatGPT falsely stated that the complaint was filed against the plaintiff for committing fraud and embezzlement.

In granting summary judgment, the court, first, found that “a reasonable reader in [the journalist]’s position could not have concluded that the challenged ChatGPT output communicated ‘actual facts,’” and thus the output is not defamatory as a matter of law.  Among other things, the court observed that “ChatGPT warned [the journalist] that it could not access the internet or access the link to the . . . complaint that [he] provided to it, and that it did not have information about the period of time in which the complaint was filed, which was after its ‘knowledge cutoff date.’”  The court cited expert testimony which found that the journalist’s “Prompt Engineering techniques and choice to ignore ChatGPT’s warnings about its limitations contributed to the non-factual output.”

Second, the court found that the plaintiff could not demonstrate fault under a negligence or actual malice standard.  The court explained that whereas OpenAI offered evidence “demonstrating [it] leads the Al industry in attempting to reduce and avoid mistaken output like the challenged output here,” the plaintiff “identified no evidence of what procedures a reasonable publisher in OpenAl’s position would have employed based on the skill and experience normally exercised by members of its profession.”  The court also found the plaintiff is a public figure, and thus must establish that OpenAI acted with actual malice to hold the company liable for defamation, but that plaintiff did not provide any evidence to support that contention.

Photo of Yaron Dori Yaron Dori

Yaron Dori has over 25 years of experience advising technology, telecommunications, media, life sciences, and other types of companies on their most pressing business challenges. He is a former chair of the firm’s technology, communications and media practices and currently serves on the…

Yaron Dori has over 25 years of experience advising technology, telecommunications, media, life sciences, and other types of companies on their most pressing business challenges. He is a former chair of the firm’s technology, communications and media practices and currently serves on the firm’s eight-person Management Committee.

Yaron’s practice advises clients on strategic planning, policy development, transactions, investigations and enforcement, and regulatory compliance.

Early in his career, Yaron advised telecommunications companies and investors on regulatory policy and frameworks that led to the development of broadband networks. When those networks became bidirectional and enabled companies to collect consumer data, he advised those companies on their data privacy and consumer protection obligations. Today, as new technologies such as Artificial Intelligence (AI) are being used to enhance the applications and services offered by such companies, he advises them on associated legal and regulatory obligations and risks. It is this varied background – which tracks the evolution of the technology industry – that enables Yaron to provide clients with a holistic, 360-degree view of technology policy, regulation, compliance, and enforcement.

Yaron represents clients before federal regulatory agencies—including the Federal Communications Commission (FCC), the Federal Trade Commission (FTC), and the Department of Commerce (DOC)—and the U.S. Congress in connection with a range of issues under the Communications Act, the Federal Trade Commission Act, and similar statutes. He also represents clients on state regulatory and enforcement matters, including those that pertain to telecommunications, data privacy, and consumer protection regulation. His deep experience in each of these areas enables him to advise clients on a wide range of technology regulations and key business issues in which these areas intersect.

With respect to technology and telecommunications matters, Yaron advises clients on a broad range of business, policy and consumer-facing issues, including:

Artificial Intelligence and the Internet of Things;
Broadband deployment and regulation;

IP-enabled applications, services and content;
Section 230 and digital safety considerations;
Equipment and device authorization procedures;
The Communications Assistance for Law Enforcement Act (CALEA);

Customer Proprietary Network Information (CPNI) requirements;

The Cable Privacy Act
Net Neutrality; and
Local competition, universal service, and intercarrier compensation.

Yaron also has extensive experience in structuring transactions and securing regulatory approvals at both the federal and state levels for mergers, asset acquisitions and similar transactions involving large and small FCC and state communication licensees.

With respect to privacy and consumer protection matters, Yaron advises clients on a range of business, strategic, policy and compliance issues, including those that pertain to:

The FTC Act and related agency guidance and regulations;
State privacy laws, such as the California Consumer Privacy Act (CCPA) and California Privacy Rights Act, the Colorado Privacy Act, the Connecticut Data Privacy Act, the Virginia Consumer Data Protection Act, and the Utah Consumer Privacy Act;
The Electronic Communications Privacy Act (ECPA);
Location-based services that use WiFi, beacons or similar technologies;
Digital advertising practices, including native advertising and endorsements and testimonials; and

The application of federal and state telemarketing, commercial fax, and other consumer protection laws, such as the Telephone Consumer Protection Act (TCPA), to voice, text, and video transmissions.

Yaron also has experience advising companies on congressional, FCC, FTC and state attorney general investigations into various consumer protection and communications matters, including those pertaining to social media influencers, digital disclosures, product discontinuance, and advertising claims.

Photo of Andrew Longhi Andrew Longhi

Andrew Longhi advises national and multinational companies across industries on a wide range of regulatory, compliance, and enforcement matters involving data privacy, telecommunications, and emerging technologies.

Andrew’s practice focuses on advising clients on how to navigate the rapidly evolving legal landscape of state…

Andrew Longhi advises national and multinational companies across industries on a wide range of regulatory, compliance, and enforcement matters involving data privacy, telecommunications, and emerging technologies.

Andrew’s practice focuses on advising clients on how to navigate the rapidly evolving legal landscape of state, federal, and international data protection laws. He proactively counsels clients on the substantive requirements introduced by new laws and shifting enforcement priorities. In particular, Andrew routinely supports clients in their efforts to launch new products and services that implicate the laws governing the use of data, connected devices, biometrics, and telephone and email marketing.

Andrew assesses privacy and cybersecurity risk as a part of diligence in complex corporate transactions where personal data is a key asset or data processing issues are otherwise material. He also provides guidance on generative AI issues, including privacy, Section 230, age-gating, product liability, and litigation risk, and has drafted standards and guidelines for large-language machine-learning models to follow. Andrew focuses on providing risk-based guidance that can keep pace with evolving legal frameworks.

Photo of Vanessa Lauber Vanessa Lauber

Vanessa Lauber is an associate in the firm’s New York office and a member of the Data Privacy and Cybersecurity Practice Group, counseling clients on data privacy and emerging technologies, including artificial intelligence.

Vanessa’s practice includes partnering with clients on compliance with federal…

Vanessa Lauber is an associate in the firm’s New York office and a member of the Data Privacy and Cybersecurity Practice Group, counseling clients on data privacy and emerging technologies, including artificial intelligence.

Vanessa’s practice includes partnering with clients on compliance with federal and state privacy laws and FTC and consumer protection laws and guidance. Additionally, Vanessa routinely counsels clients on drafting and developing privacy notices and policies. Vanessa also advises clients on trends in artificial intelligence regulations and helps design governance programs for the development and deployment of artificial intelligence technologies across a number of industries.