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"Controls" is doing a lot of work there. It seems like holding someone liable for what their pet parrot says.
Sure but isn't that the problem? We blame the owner when a dog with known behavior issues bites someone. Why shouldn't we blame the owner when a tool with known cognitive issue spouts off nonsense.
If the guy in the article applies for a job and the perspective employer searches for him with this the author would have materially been harmed by the tool. A ToS that he never agreed to shouldn't bind him from pursuing damages.
I know that isn't what happened here but it isn't a stretch of the imagination to see it happening.
People need to quit acting like shit a computer spits out it's true. Unlike a dog bite, false information can't hurt anytime if nobody takes it seriously.
What's the alternative? Shut down all uses of generative AI because of liability issues? "Just make it tell the truth" is not a viable solution.
It's like holding Microsoft liable for what Bill Gates says.