Arbitrator Relies On AI In Valve Award
Mr. LaPaglia moved to vacate Arbitrator Saydah's award in LaPaglia v. Valve Corp., arguing the arbitrator used generative AI to fabricate factual findings and cite uncited market claims. Valve counters the allegation as thin and notes petitioner's counsel was sanctioned for prior AI-generated fabrications. Judge Ruth Bermudez Montenegro dismissed the federal filing for lack of diversity jurisdiction (under $75,000), leaving merits unaddressed.
Key Points
- 1Alleges Arbitrator Saydah used generative AI to draft award, citing inaccurate, uncited factual assertions.
- 2Highlights significance because reliance on AI could exceed arbitrator authority and violate arbitration agreement.
- 3Requires practitioners to document human authorship and challenge awards if AI substitutes arbitrator deliberation.
Scoring Rationale
Allegation raises notable legal governance issues; limited by contested evidence and the court's jurisdictional dismissal.
Sources
Public references used for this report.
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