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Do Chatbots Understand The Law?

Researchers at USC’s Information Sciences Institute ran an experiment with a chatbot. When they asked if it was legal to ship phosphorus overseas, the bot answered correctly: no, it’s against the law. But when they asked how to do it, the bot sometimes gave step-by-step instructions. This surprising gap is the focus of a new study into how large language models (LLMs) understand legal rules—and how they sometimes ignore them. Breaking the rules …
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The Horizons Tracker broke the news in on Wednesday, December 17, 2025.
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