That time when a CEO ignored his lawyers and used ChatGPT to help him avoid paying bonuses to his employees

Reddit r/ArtificialInteligence News

Summary

A CEO used ChatGPT to devise a scheme to avoid paying $250 million in bonuses to employees, ignoring legal advice; the scheme failed in court, and he had to pay.

I did a quick search in this subreddit and it appears nobody else shared this. Well, this is too juicy not to share!... 😆 So, Changhan Kim, CEO of the South Korean gaming company KRAFTON, decided that he wanted to get out of paying bonuses that were part of a compensation package for a company he bought a few years ago. He instituted an earnout that had such lofty hurdles he never thought he would have to pay it. Well, the company he bought, "Unknown Worlds Entertainment" had internal estimates that indicated it would hit all the compensation milestones, putting Mr. Kim in a position where he had to pay out $250 million of extra bonuses to the management team. However, Kim didn't want to pay those bonuses and he ignored the advice of his (human) attorneys who said he had to adhere to the contract. According to court provided Slack records Kim went on ChatGPT one late night and Jujitsu'd, through elaborate prompt engineering, a scheme to not pay what his employees were owed. At first ChatGPT said it wasn't possible, but Mr. Kim wouldn't take "no" for an answer. So, under duress, the model hallucinated a complex cockamamie plan for Kim to achieve what he wanted. It involved firing the managers so they technically wouldn't be "employees" anymore, etc. However, when the scheme met reality through a Delaware court lawsuit, it fell apart completely and Changhan had to rehire the managers and pay them their bonuses! Here is a Fortune article on what happened. Here is Mo Bitar's take, which is absolutely hilarious! Trendslop!... 🤣 Have a happy rest of your weekend y'all!
Original Article

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