Online reviews are often worth their weight in gold for various companies. Most consumers today pay close attention to what others say about a particular product or service. Before hitting that all-important “add to cart” button, a consumer might read through dozens of reviews. AI has changed the landscape of online reviews, and a considerable portion of these reviews are now likely to be generated by machine learning programs – not humans. This poses obvious concerns for consumers searching for reliable information, but companies should also be aware of the legal risks. This strategy has the potential to backfire in various ways, and it may even lead to AI defamation lawsuits.

How Can AI-Generated Reviews Lead to Defamation Lawsuits?

It is a long-established fact that online reviews can lead to defamation lawsuits. A simple “one-star review” on the Google Maps page of a local restaurant could land you in hot water – especially if you lie about your experiences. But how do these defamation laws apply to AI-generated reviews? Based on recent legal developments, it seems that the company or the platform could become liable instead.

One of these recent developments is the rise of Google’s “Gemini” AI, which is now integrated into Google Maps. Users can ask Gemini for recommendations about nearby restaurants or attractions, and it may “summarize” local reviews in order to make these recommendations.

Some say that this new service could make Google liable for the underlying reviews. Even though they might have been originally written by humans, the process of summarizing them with AI could make Google vulnerable to defamation lawsuits.

Facebook is using similar AI software to summarize the comments sections of certain posts – including news reports. In the same way, Facebook could become liable for some of these summarized comments – even if they were originally written by humans.

That being said, this is a legal question that has not really been addressed in courts around the world. It is not clear how Facebook or Google would respond if accused of AI defamation, but they may be able to execute various defense strategies. Like so many other legal issues regarding social media platforms, much depends on whether they can be classified as “publishers” under US law.

The problem is that current defamation laws were not written in response to AI-generated reviews. Various jurisdictions may feel the need to adjust these laws in response to the new AI-dominated world. Only recently have people become aware of how much online content is generated by AI bots.

The basic question is simple: What happens when Google actively tells web users to avoid your restaurant? What happens when Facebook tells its users that most people don’t like a particular political figure? These are multi-billion-dollar tech companies, and their AI systems could influence the world in ways we cannot even imagine. For many – including small businesses attempting to compete with major corporations – this is a very worrying prospect.

The Scale of Fake AI-Generated Reviews is Unbelievable

Most people are completely unaware of the sheer scale of fake, AI-generated reviews. Many of these AIs are so advanced that it is impossible to tell them apart from human reviewers – potentially allowing companies to influence consumers’ purchasing decisions without anyone realizing it.

In November of 2024, numerous sources reported that AI-generated reviews were becoming a particularly serious problem in the airline industry. According to one report, these fake reviews surged by almost 200% after the emergence of ChatGPT. Aviation Source states that online reviews can “make or break” airlines, making this issue particularly worrying in this industry.

For one particular airline, almost one-third of their total reviews were written by AI programs. There was some confusion as to who was actually facilitating these reviews. Some airlines appeared to be actively fighting AI-generated reviews on their websites, suggesting that this was not intentional. Airlines might be generating negative reviews on competitors’ web platforms in an attempt to gain a competitive edge.

Similar reports suggest that fake reviews are also a major issue across various app stores. These reviews are generally positive, written by AI platforms, and accompanied by five-star ratings. This is a concern for many tech startups, as high-quality apps are becoming overshadowed by poor-quality apps with a flood of fake reviews.

In fact, many of the apps associated with fake reviews are completely fraudulent. Forbes notes that one strategy is to flood your phone with ads in order to generate revenue while providing nothing of value in return. While fake reviews are nothing new in the Android and App Stores, AI makes the scale of this problem much more serious. According to some analysts, up to half of all reviews in certain app stores are now fake.

The issue is clearly widespread – but are companies facing any consequences? In August of 2024, the Federal Trade Commission (FTC) announced a new rule against fake reviews and testimonials. This “final rule” bans all companies from purchasing, selling, or disseminating fake reviews of any kind. While this rule does not specifically address AI, it is clearly a response to the influx of AI-generated reviews. This rule went into effect on October 21, 2024.

Companies must be very careful with any activities that involve fake reviews. Although it might seem tempting to generate thousands of positive reviews with a single click, this could have lasting consequences for your business. Even if you escape consequences from the FTC, you may face various other consequences.

Can a Tech Lawyer Help with AI-Generated Reviews?

A tech lawyer may be able to help startups and companies struggling with AI-generated reviews. These reviews could lead to defamation lawsuits – even if the content itself is completely devoid of human input. If your business has been affected by an AI-generated review, you might be able to take decisive legal action. These concepts are still very new, and courts around the globe are still trying to determine how to address them. When facing these issues, it may help to consult with an experienced tech lawyer – such as John P. O’Brien. Contact us today – and take advantage of our professional tech law consulting services.