ChatGPT Sued: Unauthorized Law Practice Alleged by Insurer

A United States insurer is suing the creator of ChatGPT, alleging the chatbot engaged in the unauthorized practice of law. This happened because a litigant used the AI tool in proceedings against the insurer. The case, Nippon Life Insurance Company of America versus OpenAI Foundation, was filed in March 2026. The complaint states a former claimant used ChatGPT to prepare litigation after settling a disability dispute. The insurer attributes at least 44 filings to the AI tool. Nippon Life is pursuing three claims against OpenAI, including tortious interference with the settlement contract and abuse of process. The claim about the unauthorized practice of law is gaining significant attention. OpenAI has publicly stated the complaint lacks merit. The Queensland approach to regulating unauthorized practice has similarities to many US states. This means a similar claim could have relevance there, as legal advice and document drafting are reserved domains. This case highlights important questions about who is responsible when AI is used as a substitute for a lawyer.