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China court weighs liability in first generative AI 'hallucination' dispute

By MLex Staff ( January 30, 2026, 09:12 GMT | Insight) -- A Chinese court has resolved what the judiciary has described as the country’s first infringement dispute triggered by hallucinations from a generative artificial intelligence model, offering early judicial guidance on how to balance civil rights protection with the development of AI. The Hangzhou Internet Court found no fault on the part of the defendant, an unidentified technology company behind a generative AI chatbot that provided misleading information to the plaintiff.A Chinese court has resolved what the judiciary has described as the country’s first infringement dispute triggered by hallucinations from a generative artificial intelligence model, offering early judicial guidance on how to balance civil rights protection with the development of AI....

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