A German court ruled that Google is liable for false statements made in its AI Overviews feature, in a case where two publishers were incorrectly linked to scams and dubious business practices. The ruling came after Google failed to correct misleading outputs even after the publishers sent a cease-and-desist letter earlier this year. The court distinguished AI Overviews from traditional search engines, finding that Google's tool made independent, substantive statements based on its own misinterpretation of Internet links, and because only Google can correct the underlying algorithm, the company must be held accountable for false claims.
German Court Distinguishes AI Overviews from Traditional Search Results
The case, flagged by The Decoder, involved two publishers who discovered that Google's AI Overviews incorrectly linked them to scams and sketchy business practices. Google's AI made affirmative statements such as "Yes, [it] is known for dubious business practices and is often perceived as a scam," smearing the publishers' reputations.
Google attempted to shield itself from liability by arguing that most users understand AI outputs aren't always accurate and must be verified. The court rejected this defense, finding that unlike traditional search engines that merely present lists of links to third-party statements, Google's tool made "independent, new, and substantive statements" based on its own misinterpretation of links on the Internet.
The court emphasized that while publishers may have been able to sue third parties for defamatory statements appearing in Google search results, only Google can correct the underlying algorithm and outputs displayed in AI Overviews. The court deemed Google's argument particularly weak since the AI overview in this case "contains statements that do not appear in the search results at all."
Court Issues Temporary Injunction Against Google
The court issued a temporary injunction barring Google from spreading the false claims in any further AI Overviews. The ruling may have global implications, as the court appears to be the first to hold an AI firm liable for AI speech.
In the past, AI firms have relied on disclaimers warning about misinformation to protect themselves from lawsuits over untrustworthy outputs. Last year, one chatbot maker argued that AI speech is its own category of "pure speech" and should be protected by the First Amendment.
FAQ
What did the German court rule about Google's AI Overviews?
The German court ruled that Google is liable for false statements made in AI Overviews. The court found that Google's AI tool made independent, substantive statements based on its own misinterpretation of Internet links, distinguishing it from traditional search engines that merely present lists of links to third-party content.
Why did the court reject Google's defense in this case?
The court rejected Google's argument that users understand AI outputs must be verified because only Google can correct the underlying algorithm and outputs in AI Overviews. The court also noted that the false statements in the AI overview did not appear in the search results at all, making Google's defense particularly weak.
