You Might Be Alarmed To Know That When You Use ChatGPT You Are Agreeing To Indemnify OpenAI And Could Be On The Hook For A Huge Legal Bill, Warns AI Ethics And AI Law

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When using ChatGPT, you have agreed to a licensing requirement that allows OpenAI to come after you if they get sued for something you allegedly did that caused harm while making use of ChatGPT. This is the dreaded indemnification clause. Read all about it and be prepared.

, just to name a few. A lawyer can find that using ChatGPT or other generative AI is a big time saver, allowing the lawyer to get work done expeditiously and impress their clients accordingly. The line today is that lawyer’s using generative AI will outdo lawyers that aren’t using generative AI. The catch, perhaps, would be that you need to be cautious when using ChatGPT and double-check or triple-check whatever outputs are generated.

As noted, let’s assume that the client of Jack that was potentially harmed in some fashion as a result of the faulty filing with the court, turns around and sues Jack for legal malpractice. The client might also opt to sue OpenAI. If they sued OpenAI, presumably the AI maker would come to Jack and invoke the indemnification clause, seeking to have Jack cover the costs and whatnot to defend against the lawsuit of Jack’s client.

Third, consult your attorney about how to best try to legally protect yourself if you are insistent that you must use ChatGPT or some other generative AI that contains such a clause. Better to be prepared. When a lawsuit comes, the shock might be lessened if you’ve done your homework beforehand. You can at least have been embarking on a path that will enable your attorney to perhaps find ways to bolster your defense.

“Most consumers in the United States purchase goods and services online. And most of them never read the ‘terms and conditions’ that are often embedded in their transactions. Yet, those unread terms can include important obligations regarding future disputes, such as provisions requiring the consumer to indemnify the vendor and hold it harmless. Are such online indemnification provisions enforceable? Little case law directly addresses this question.

 

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