In a decision dated March 12, 2026, the court distinguished between ordinary search suggestions and AI-generated content, finding that the latter, produced through Baidu’s AI processing, constituted defamation. Although Baidu argued against liability based on AI hallucination, the court mandated that the company issue a written apology to the affected lawyer, Li Xiaoliang, while denying claims for economic loss due to insufficient evidence. Following Baidu’s appeal and subsequent upholding of the judgment, enforcement proceedings are anticipated as Li has sought court intervention for compliance.