In the News: First Chinese Ruling on AI Model Hallucination Tort; EU Companies Review Chinese Supply Chain; and China Pushes AI Innovation Within Tight Rules

The pledge by an AI platform to compensate for misinformation was held unenforceable by a Chinese court. | A survey finds that most EU firms are reviewing their supply chains in China. | China is demanding innovation while enforcing strict content and data compliance rules.

By Jeffrey Tse

In the News: First Chinese Ruling on AI Model Hallucination Tort; EU Companies Review Chinese Supply Chain; and China Pushes AI Innovation Within Tight Rules

First-Ever Court Case on AI Model “Hallucination”

The Hangzhou Internet Court has issued a ruling in the country’s first AI "hallucination" tort dispute.

In the lawsuit, the plaintiff, surnamed Liang, began to use an unnamed AI model created by the defendant.

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