Recently, the Hangzhou Internet Court rendered a first-instance verdict in the inaugural national infringement dispute case stemming from the "hallucination" phenomenon of generative AI. In June 2025, plaintiff Mr. Liang encountered inaccurate information regarding a university's main campus while utilizing a generative AI platform to gather college application details. After Mr. Liang highlighted the error, the AI persisted in its claim of accuracy and even pledged to compensate RMB 100,000 if the information proved incorrect. It was only after Mr. Liang presented official documentation that the AI conceded its mistake.

Asserting that the AI-generated erroneous information had misled him, Mr. Liang initiated legal proceedings, seeking RMB 9,999 in compensation from the AI platform's research and development company. The court ruled that, under the prevailing legal framework, AI lacks the status of a civil subject and is incapable of independently expressing intentions. Consequently, the "compensation promise" generated by the AI did not represent a valid expression of intention by the platform and thus held no legal weight.

Furthermore, the court emphasized that generative AI services fall under the purview of the principle of fault liability, rather than the no-fault product liability principle. Upon thorough examination, it was revealed that the AI platform in question had completed the necessary large model filing and security assessment procedures. It had also fulfilled its duty to inform users about the limitations of AI functions at multiple junctures, including the application interface and user agreement. Additionally, the platform had implemented essential technical measures to ensure content accuracy. As a result, the court determined that the platform was not at fault and did not constitute infringement.

Ultimately, the court dismissed all of the plaintiff's claims. This landmark case sheds light on the legal status of AI-generated content and delineates the boundaries of platform liability, offering crucial judicial guidance for the industry's advancement.