January 2026

Shanghai Pudong Court Issues First Judgment Defining Liability Boundaries for User-Induced AI Hallucinations (Judgment issued on October 31, 2025)

Shanghai Pudong Court Issues First Judgment Defining Liability Boundaries for User-Induced AI Hallucinations (Judgment issued on October 31, 2025)By •

Editor’s Note: This case is notable because it shows how courts are beginning to deal with AI “hallucinations” in real commercial settings. Instead of looking only at what the AI said, the Shanghai Pudong Court paid close attention to how the conversation happened, what the user repeatedly asked, and what safeguards the platform had in place. The decision makes clear that when misleading AI outputs are driven by strategic user prompting, and the model provider has acted reasonably, courts may be reluctant to impose liability—offering practical guidance for AI platforms, brand owners, and their counsel.

Shanghai Pudong Court Issues First Judgment Defining Liability Boundaries for User-Induced AI Hallucinations (Judgment issued on October 31, 2025) More »

Hangzhou Internet Court: Application of the Fault-Based Liability Principle to AI “Hallucination” Infringement (Judgment on December 3, 2025)

Hangzhou Internet Court: Application of the Fault-Based Liability Principle to AI “Hallucination” Infringement (Judgment on December 3, 2025)By •

Editor’s Note: “AI hallucination” refers to situations where generative AI produces information that is factually incorrect, fabricated, or otherwise unreliable. This case is China’s first court decision addressing civil liability arising from AI hallucinations.

Hangzhou Internet Court: Application of the Fault-Based Liability Principle to AI “Hallucination” Infringement (Judgment on December 3, 2025) More »

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