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Google, Anthropic and SpaceXAI are racing to sell AI legal tools to law firms, even as courts punish lawyers for AI-fabricated citations. Ontario ordered lawyer Shahryar Mazaheri to pay $31,150 for Grok-drafted fake case law. A database has cataloged nearly 2,000 such cases worldwide involving over 800 lawyers. Google and Anthropic claim their products pull citations from verified external databases rather than model memory.
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