Reserve Bank whistleblower alleges ChatGPT defamation

A central Victorian mayor and one-time whistleblower is launching legal action over what he alleges are defamatory statements made by ChatGPT.

Brian Hood, now mayor of Hepburn Shire, worked for Reserve Bank subsidiary Note Printing Australia in the early 2000s, and alerted authorities that officers of NPA and another subsidiary, Securency, were paying bribes to win international banknote printing contracts.

Hood’s lawyers Gordon Legal explained that instead of detailing Hood’s whistleblowing, ChatGPT “incorrectly identified him as an individual who faced charges … rather than his actual role as the whistleblower in the case.”

The generative AI tool makes a series of false statements when quizzed about Hood's role.

Gordon Legal filed a 'Concerns Notice' to OpenAI on March 21 2023, detailing the inaccuracy and demanding a rectification.

“Brian Hood’s reputation as a morally upstanding whistleblower has been defamed by ChatGPT, which incorrectly represented him as an individual responsible for illegally bribing foreign officials," Gordon Legal partner James Naughton said in a statement.

“This critical error is an eye-opening example of the reputational harm that can be caused by AI systems such as ChatGPT, which has been shown in this case to give inaccurate and unreliable answers disguised as fact.

“As artificial intelligence becomes increasingly integrated into our society, the accuracy of the information provided by these services will come under close legal scrutiny.

"The claim brought will aim to remedy the harm caused to Mr Hood and ensure the accuracy of this software in his case."