bbieron@platformeconomyinsights.com

Conservative Activist Sues Meta Over Defamatory AI Hallucinations

May 5, 2025

Report from the Wall Street Journal

In Brief – Robby Starbuck, a conservative activist notable for successfully pressuring companies to change their DEI practices, has filed a defamation lawsuit against Meta alleging that its AI tool smeared him by falsely asserting he participated in the January 6 Capitol riot and that he was linked to QAnon. Starbuck says he discovered the problem last August when the allegations were posted on X. Starbuck immediately denied the allegations and contacted Meta about the claims, which he says continued to show up in its AI system responses months later. Starbuck’s lawsuit, filed in Delaware Superior Court, seeks more than $5 million in damages. Joel Kaplan, Meta’s chief global affairs officer, took to X to apologize to Starbuck that the company’s fix “didn’t address the underlying problem” and that he was working to “explore potential solutions.”

Context – AI “hallucinations”, the reality that all generative AI systems sometimes produce results that are false and cannot be explained by the system’s creators, provides valuable context for many AI public policy issues. They illustrate that GAI tools are not like traditional databases or search engines. They don’t store and return fixed data, they compile responses by determining which fragments of text best follow other sequences, all based on a statistical model that has ingested and processed many billions of examples often pulled from all over the internet. Starbuck’s defamation case gets in line, with a noteworthy lawsuit in Georgia state court involving OpenAI being farthest along. The fact that all the AI systems create fictions that are presented as real should be presented in AI-related copyright lawsuits as proof that AI systems create new works rather than copy and paste. The issue will likely appear when the question of applying Sec. 230 to AI results is decided because developers cannot ever be sure of outputs. And hallucinations happen at the same time some entities are trying to influence AI outputs by seeding training date with falsehoods. “Fixing” troubling outputs often ends up with an AI developer installing “guardrails”, meaning algorithmically overriding the system in some cases, which has created accusations of ideological biases by the companies.

View By Monthly
Latest Blog
OpenAI Reaches Defense Department Deal Flanking Anthropic

Report from the New York Times In Brief – OpenAI says it has reached agreement with the US Department of Defense (DoD) to supply AI for classified systems in a manner that the company says addresses its opposition to the technology being misused in autonomous weapons...

Federal Judge Blocks Virginia’s One-Hour Time Limit for Social Media

Report from Reuters In Brief – US District Judge Patricia Tolliver Giles has issued a preliminary injunction blocking Virginia from enforcing Senate Bill 854 that imposes a time limit on teens using social media platforms with so-called “addictive” features. Platforms...

FTC Chairman Accuses Apple of News Media Viewpoint Discrimination

Report from the New York Times In Brief – The Federal Trade Commission announced that it sent a warning letter to Apple CEO Tim Cook expressing concerns that the operations of the Apple News may favor certain political viewpoints in a way that conflicts with Apple’s...

PM Starmer Proposes Bringing AI Chatbots Under the UK Online Safety Act

Report from Bloomberg In Brief – UK Prime Minister Keir Starmer has announced plans to bring AI chatbots directly under the Online Safety Act (OSA) to close what he called a “legal loophole” in Britain’s online safety regime and ensure that they are designed to not...

Reddit Fined By UK ICO for Failing to Age Check 13-Year-Olds

Report from the BBC In Brief – The UK’s data protection regulator, the Information Commissioner's Office (ICO), has fined Reddit more than £14 million for failing to adequately enforce its rules regarding children under 13 accessing the platform. Following an...

Platform Economy Insights produces a short email four times a week that reviews two top stories with concise analysis. It is the best way to keep on top of the news you should know. Sign up for this free email here.

* indicates required