Anthropic, an artificial intelligence company, has acknowledged that its Claude AI chatbot generated a fabricated legal citation in a court filing during its ongoing legal dispute with music publishers, including Universal Music Group, ABKCO, and Concord. The citation, submitted by Anthropic data scientist Olivia Chen, included an inaccurate title and incorrect authors, and was not detected during a manual citation check. Anthropic described the mistake as an 'honest citation mistake' and issued an apology, calling it 'embarrassing and unintentional.' The presiding judge, Susan van Keulen, ordered Anthropic to address allegations of using non-existent or inaccurate sources in court. The incident is part of a growing number of cases where AI-generated content has led to legal errors. Recently, law firms K&L Gates and Ellis George were sanctioned $31,100 by a California judge for submitting a brief containing 'bogus AI research,' with nine out of 27 legal citations found to be incorrect. These developments come as the U.S. Copyright Office released a report concluding that companies using copyrighted materials to train AI models presumptively infringe on copyright protections, and that commercializing such works is unlikely to qualify as fair use. The report has been followed by the firing of Shira Perlmutter, the Register of Copyrights, by President Donald Trump, raising concerns about the independence of the Copyright Office. Internationally, the Hong Kong Government has published a non-binding guideline on generative AI, recommending accuracy, reliability, and risk management in AI-generated content, including the use of fact-checking tools to minimize errors such as AI hallucinations.