Judge Reduces Law Firm's Billing by 50% for ChatGPT Usage

A New York City-based law firm, Cuddy Law, used ChatGPT to calculate lawyers' fees at an "excessive" $600 per hour for a case involving special needs education. However, a federal district judge rebuked the firm for relying on the AI tool, citing its lack of reliability and the potential for fabricated information. The judge ultimately cut the firm's requested fees in half, to $53,050, and advised against using ChatGPT in future fee applications. This incident highlights the challenges and risks associated with using generative AI tools in the legal space.