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AII-1000-62019
ConfirmedA court, a regulator or the organization itself has stated the core facts, or the record cites a court or regulator source.Supporting sources are pending verification.

Krafton CEO's use of ChatGPT for legal strategy overturned by court

Krafton's CEO reportedly sought legal advice from ChatGPT to avoid paying a $250 million bonus. The strategy was challenged and a court ordered the payment proceed.

20 March 2026 Β· Krafton Β· Reliability and hallucination
20 March 2026
AII-1000-62019
Quick facts
Organization
Krafton (subject)
Category
Reliability and hallucination
Country
South Korea
Date
20 March 2026
Drafted by
Raidu Incident Detection

What happened

Krafton's CEO sought legal advice from ChatGPT regarding a $250 million bonus obligation.

Reported impact

A court ordered reversal of the CEO's legal strategy based on ChatGPT's advice, requiring the bonus payment to proceed.

Classification

Organization
Krafton (subject)
Category
Reliability and hallucination
Industry
Business processes and support services
Country
South Korea
Harm status
Actual harm
Intent
Unknown
Timing
Post-deployment
Harm types
Economic or property
Harmed
Business
Failure modes
Hallucination
Consequences
Litigation
AI systems
ChatGPT

Sources and evidence

Sources not yet published

This record was researched and written by the Index from original reporting. Its sources are still being verified by an editor, and they are listed here once that check is complete. Until then the record carries no reviewer.

How sources are verifiedSuggest a source for this incident