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The hallucination risk hiding in your compliance stack

In June 2023, New York attorney Steven Schwartz submitted a legal brief citing six cases that simply did not exist. He had used ChatGPT to conduct the research and, trusting the chatbot’s apparent confidence, never verified a single citation against an authoritative legal database. According to Sherlocq, the judge called the submission “legal gibberish” and sanctioned Schwartz and his colleague $5,000 each. Chief Justice John Roberts would later…
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regtechanalyst.com broke the news on Tuesday, May 26, 2026.
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