Aug. 7, 2026
SB 574, Hallucinated Cases, and Sacramento's New Rules for Lawyers, Judges, Arbitrators | Kabateck & Karnikian: Off the Record, Ep. 11
SB 574 has cleared the Senate unanimously and would make California lawyers personally responsible for every AI-generated citation they file. Brian Kabateck and Shant Karnikian break down what the bill reaches -- from client data to judges' disclosures to arbitrators who can't hand the decision to AI -- and where they split on AI arbitration.
SB 574 has cleared the Senate unanimously and is moving through the Assembly, and it would make a California lawyer personally responsible for reading every citation they file. Brian Kabateck and Shant Karnikian walk through what Sen. Tom Umberg's bill reaches, from the client data that cannot go into a public chatbot to the disclosure it would demand of judges to the decision-making an arbitrator can no longer hand off. They get into why it stops short of banning AI from the practice of law, what enforcement looks like for a bill that creates no new penalties of its own, and the one place they split, which is the American Arbitration Association's AI arbitrator and whether consent means much once AI adjudication can be written into a forced arbitration clause. Brian's understanding of the word hallucination predates all of this by about fifty years.
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