In the first five months of 2025, 73 cases were documented where artificial intelligence generated false legal citations in court documents, representing three times the 37 cases from 2024. According to legal data analyst Damien Charlotin's database, the problem is worsening: whilst only 10 cases were registered in total in 2023, there have already been 73 by May this year, and large law firms are increasingly the ones making these errors. K&L Gates and Ellis George firms received sanctions of $31,100 in May after 9 out of 27 legal citations in their 10-page submission were incorrect.
The severity of the problem is demonstrated by the fact that since 2023, a total of 120 cases have been documented where AI generated false citations, non-existent cases, or erroneous legal sources. Compared to the 10 cases in 2023, there were already 37 in 2024, and 73 cases in the first five months of 2025, primarily from the United States, but also from courts in the United Kingdom, South Africa, Israel, Australia, and Spain. Four of the five largest sanctions were imposed this year, in amounts of $10,000 or above. Special Master Michael Wilner remarked that it was "terrifying" when he nearly issued an erroneous court order based on false citations, as the falsely cited cases were so convincing.
The spread of AI hallucinations raises serious questions about the reliability of the legal profession, particularly after major international firms such as Latham & Watkins, Butler Snow, and K&L Gates have been affected. According to UCLA law professor Eugene Volokh, it is incredible that people still do not understand that AI-generated materials are riddled with errors and fabrications. The largest financial sanction to date has been $31,100, but experts suggest that the real consequences lie in professional humiliation and the loss of client trust, which could severely damage the reputation of affected firms in the long term.
Sources:
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Bob Ambrogi
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Jack Newsham
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Major law firms face scrutiny as AI-generated 'hallucinations'—fabricated legal citations—appear in court filings, prompting judicial concerns and potential sanctions.
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