X BV in Z v. Tax Inspector

Hallucinated Content

Outcome

Notes

AI UseThe appellant relied on ChatGPT to generate a list of ten "economically comparable" vehicles for purposes of arguing a lower trade-in value to reduce bpm (car registration tax). The Court noted this explicitly and criticized the mechanical reliance on AI outputs without human verification or contextual adjustment.Hallucination DetailsChatGPT produced a list of luxury and exotic cars supposedly comparable to a Ferrari 812 Superfast. The Court found that mere AI-generated association of vehicles based on "economic context and competition position" is insufficient under EU law principles requiring real-world comparability from the perspective of an average consumer.Ruling/SanctionThe Court rejected the appellant’s valuation arguments wholesale. It stressed that serious, human-verified reference vehicle comparisons were mandatory and that ChatGPT lists could not establish the legally required comparability standard under Dutch and EU law (Art. 110 TFEU). No monetary sanction imposed, but appellant’s entire case collapsed on evidentiary grounds.Key Judicial ReasoningThe Court reasoned that a list generated by an AI program like ChatGPT, without rigorous control or verification, is inadmissible for evidentiary purposes. AI outputs lack the nuanced judgment necessary to assess "similar vehicles" under Art. 110 TFEU and Dutch bpm tax rules. It underscored that the test is based on the perceptions of a human average consumer, not algorithmic proximity.