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The Volokh Conspiracy · September 7, 2026

"Incredulity" That "Competent Law Firm Representing One of the Largest Financial Institution[s] in the World" Filed Brief with AI Hallucinations

LawCorporate Law
THE AI ANGLE
Fabricating nonexistent case citations in an appellate brief

The D.C. Court of Appeals struck an appellate brief filed on behalf of Deutsche Bank and referred counsel to disciplinary authorities after discovering the brief contained hallucinated case citations generated by an attorney using Google's generative AI. Although the law firm attempted to deflect fault onto a junior associate who violated internal AI policies, the court expressed disbelief that a firm representing a major global financial institution failed to verify its citations. For law and corporate governance faculty, the decision underscores that internal policies alone do not satisfy the duty of competence or relieve senior counsel of their supervisory responsibilities.

THE TEACHING ANGLE
This case provides a stark pedagogical example of the tension between firm-level AI governance and individual ethical responsibility, prompting students to debate whether institutional policies banning AI use are sufficient without active supervisory oversight.

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