Superior Tribunal de Justiça addresses AI hallucinations and banking fraud

The Superior Tribunal de Justiça (STJ) in Brazil is urging legal professionals to consult official jurisprudence databases to avoid the use of false or imprecise citations generated by artificial intelligence. This phenomenon, known as AI hallucination, occurs when generative platforms produce inconsistent or untrue information that appears authentic, leading to its inclusion in judicial petitions.

The STJ has already identified petitions containing non-existent precedents. In such instances, the court has taken measures including notifying the Brazilian Bar Association (OAB) to evaluate attorney conduct and imposing fines for bad-faith litigation.

In a separate legal development, the STJ addressed fraud involving financial institutions. The court emphasized that suspicious transactions should be evaluated based on whether they deviate from a client's habitual behavior. Key factors for identifying atypical operations include transaction value, frequency, timing, location, and the sudden acquisition of loans followed by rapid transfers to new recipients.