News Nippon Life Sues OpenAI Unlicensed Law Practice 2026

Nippon Life Insurance Sues OpenAI for Practicing Law Without a License

On March 4, 2026, Nippon Life Insurance Co. of America filed a federal lawsuit in the United States District Court for the Northern District of Illinois (Case No. 1:26-cv-02448) accusing OpenAI of the unlicensed practice of law through its ChatGPT chatbot.

The lawsuit stems from a pro se litigant who, after a court rejected her motion to reopen a long-term disability claim in February 2025, used ChatGPT to draft a new complaint and 44 subsequent motions, memoranda, and court filings over the following year. Several of these filings cited non-existent cases generated by ChatGPT.

Nippon Life, the disability insurer that became a target of these ChatGPT-assisted filings, brought three claims against OpenAI: tortious interference with contract (alleging ChatGPT was designed to induce users to breach settlement agreements), abuse of process (alleging OpenAI aided and abetted frivolous litigation), and the unlicensed practice of law (alleging ChatGPT provides legal advice, analysis, and document drafting without a law license).

Nippon Life seeks a declaratory judgment that ChatGPT practiced law without a license, a permanent injunction against ChatGPT providing legal advice to individuals, and $10 million in punitive damages.

Notably, OpenAI modified its terms of use on October 29, 2025, to prohibit users from using ChatGPT for "provision of tailored advice that requires a license, such as legal or medical advice, without appropriate involvement by a licensed professional."

Legal commentators have characterized the case as potentially a product liability claim rather than a traditional unlicensed practice action, arguing that ChatGPT's design inherently leads users to rely on it for legal guidance. As of April 2026, OpenAI had not yet filed its response to the complaint.