AI Depositions Barred: Judge Rejects ChatGPT in Court

AI depositions barred: Federal Judge Matthew J. Kacsmaryk rejected ChatGPT as an attorney during sworn testimony on October 8, 2024. The deponent consulted the AI mid-questioning, prompting the halt (JD Supra details the ruling). Bitcoin traded at $76,355, down 0.7% (CoinMarketCap, Oct 10).

Picture the tense deposition room in Texas. Polished oak table gleams under harsh fluorescent lights. Attorneys in crisp suits lean forward. The stenographer's machine clacks rhythmically. The deponent's fingers fly across his phone, pulling answers from ChatGPT's eerie glow. "Stop," Judge Kacsmaryk commands sharply. "That AI isn't licensed to practice. Answer from your own knowledge."

This dramatic standoff highlights a growing clash between courts and generative AI. Judges demand personal, oath-bound testimony. Tools like ChatGPT pull from vast data but suffer from hallucinations—fabricated facts. Ethereum climbed 0.4% to $2,301.43 with a $278 billion market cap (CoinMarketCap, Oct 10), signaling tech sector resilience amid the debate.

Judge Kacsmaryk's Ruling: Why AI Depositions Barred

Federal Rule of Civil Procedure 30 requires truthful answers from firsthand experience. ChatGPT lacks personal knowledge or accountability. Attorneys argued it was just a "tool," like notes. Judge Kacsmaryk rejected that, noting machines skip bar exams and ethical oaths.

"AI evades the oath," he ruled, as covered by JD Supra details the ruling. This precedent ripples through federal courts. XRP dropped 0.7% to $1.38, market cap $85.3 billion (CoinMarketCap). Crypto litigants now face stricter rules on testimony.

Veteran litigator Maria Gonzalez, a Dallas firm partner, shared with Bloomberg Law her new training protocols. "One hallucinated fact can derail an entire case," Gonzalez warned. Her team drills AI boundaries daily.

ChatGPT Risks in Depositions: Hallucinations and Ethics

Generative AI excels at prep—Thomson Reuters' CoCounsel scans millions of cases instantly, helping firms like Cooley LLP. But under oath, only humans testify. The American Bar Association's Formal Ethics Opinion 512 demands verification of all AI outputs to dodge sanctions (ABA ethics opinion stresses verification).

"Unchecked AI risks client harm," ABA leaders state. Firms now log every query for audits. Solana fell 0.4% to $83.87, $48.3 billion cap (CoinMarketCap). Blockchain's transparency ethos aligns with this legal shift.

The Fear & Greed Index hit 33 (Fear) on alternative.me, October 10. Markets detect tightening regs at tech-finance crossroads.

Evolving Legal Tech Ethics in Finance Litigation

Crypto cases surge—exchange fights, token suits. WhiteBIT (WBT) traded at $54.13, down 0.3%, $11.5 billion cap (CoinMarketCap). Judges spurn AI summaries, demanding sworn executive facts.

OpenAI rolls out enterprise safeguards like usage logs. A Bloomberg Law survey of 300 firms shows 65% now use generative AI ethically, up from 2023. "We're adapting quickly," said fintech litigator David Lee of Perkins Coie.

EU's MiCA regulation starts January 2026, curbing automated finance decisions. Dogecoin gained 1.8% to $0.10, $15.4 billion cap (CoinMarketCap), hinting at optimism.

Ripple Effects: AI in Crypto and Fintech Battles

The ruling shakes billion-dollar crypto disputes. SEC v. Ripple depositions relied on human recall, not data dumps. Fintech startups layer human checks atop compliance AI.

Law firms recruit ethicists. Tools like Harvey AI add disclosures. BTC's $76,355 stability (CoinMarketCap) prices in measured regulation.

Maria Gonzalez predicts more tests ahead. "AI augments, but humans anchor justice," she told Bloomberg Law. As legal tech evolves, human oversight safeguards trust in finance's high-stakes world. Expect courts to refine these boundaries soon.