MINNEAPOLIS, MN – A Minnesota-based solar company has filed a defamation lawsuit against Google, alleging that the tech giant’s AI Overviews feature disseminated false information that severely damaged its business.
Immediate Impact
Wolf River Electric, the solar firm at the center of the legal battle, claims that Google’s AI inaccurately reported the company was embroiled in a lawsuit with Minnesota Attorney General Keith Ellison for deceptive sales practices. Nicholas Kasprowicz, general counsel for Wolf River Electric, emphasized the broader implications of the case in a statement, saying, “This lawsuit is not just about defending our company’s reputation; it’s about standing up for fairness, truth, and accountability in the age of artificial intelligence.”
Key Details Emerge
The lawsuit, initially filed in a state court in March, was transferred to a federal court this week following Google’s request for removal, as reported by the Minnesota Star Tribune. The legal proceedings raise a critical question: Can a company be held liable for misinformation spread by its AI?
“This might be one of the first cases where we actually get to see how the courts are going to really dig down and apply the basic principles of defamation law to AI,” said Ari Cohn, lead counsel for tech policy at the Foundation for Individual Rights in Education (FIRE), in an interview with Politico.
Industry Response
Google has denied the defamation allegations, describing the incident as a minor error. “The vast majority of our AI Overviews are accurate and helpful but like with any new technology, mistakes can happen,” Google stated to Politico. “As soon as we found out about the problem, we acted quickly to fix it.”
By the Numbers
Wolf River Electric reported that several contracts, each worth up to $150,000, were canceled due to the misinformation.
Background Context
According to the lawsuit, the AI feature falsely claimed that Wolf River Electric was involved in a lawsuit for misleading customers about savings and hiding fees in contracts. Notably, the AI cited four sources to substantiate its claims, none of which mentioned any lawsuit against Wolf River Electric. This incident highlights ongoing concerns about the reliability and accountability of AI-generated content.
Expert Analysis
Legal experts suggest that Wolf River Electric might have a strong case, particularly because the company is not well-known enough to be considered a public figure, lowering the threshold for proving defamation. “They’ve got what a lot of people who’ve been libeled have a hard time proving,” noted UCLA Law professor Eugene Volokh to Politico.
What Comes Next
Wolf River Electric is seeking substantial damages ranging from $110 million to $210 million. The outcome of this lawsuit could set a significant precedent for how courts handle AI-related defamation cases in the future. “No corporation, regardless of its size or market dominance, should be permitted to release powerful AI tools that generate and spread false information without proper oversight or consequences,” Kasprowicz asserted.
The case continues to unfold, with potential implications for AI technology and corporate accountability in the digital age.
