The Risks of Relying on AI for Legal Advice
It can be tempting to use Generative Artificial Intelligence (AI) for the purposes of obtaining legal advice. While AI might appear on the surface to offer a low-cost alternative to seeking legal advice, there are many risks associated with relying on AI in place of a trained legal practitioner. Some of these risks are well-known, while others are less obvious.
This article highlights and explains the risks associated with using AI in place of a solicitor.
1. No Duty of Care, Accountability or Regulatory Oversight
AI tools are not legal professionals and do not operate under Australia’s regulated legal framework. They do not owe users a duty of care, are not subject to the professional and ethical obligations imposed on Australian legal practitioners, and do not carry professional indemnity insurance. Where a client relies on AI-generated information and suffers loss as a result, there is no law firm to hold accountable and no professional regulator to whom a complaint can be made.
By contrast, when a client engages an Australian solicitor, they are receiving advice from a regulated legal practitioner who is personally accountable for that advice. Solicitors are subject to professional conduct rules, must hold professional indemnity insurance, and are regulated by bodies such as state and territory Legal Services Commissions and Law Societies. They are also subject to disciplinary action where professional standards are not met. This regulatory framework exists because legal advice can have serious and long-term consequences, and clients need clear accountability if issues arise.
2. Outdated, Generalised, or Unverified Information
AI systems rely on training data that is current only up to a fixed point in time and do not have reliable, real-time awareness of legislative change or recent court decisions. They also generate responses based on generalised patterns rather than a detailed analysis of a client’s specific facts and circumstances. This creates a particular risk in Australia, where the law is frequently amended and legal outcomes often turn on fact-specific considerations. Even where an AI response appears confident, it may be based on legal positions that have since changed or on general principles that do not apply in a particular case.
Recent reforms in areas such as employment law, Queensland property law and privacy regulation highlight this risk. In Australia, significant legislative changes are often introduced with staged commencement dates, transitional provisions or evolving regulatory guidance, meaning that information which was accurate even a short time ago, or accurate only at a high level, may no longer reflect the current legal position as it applies to an individual client.
In addition, the accuracy of AI-generated output depends entirely on the accuracy of the information provided to it. AI tools generally assume that the information provided by a user is accurate and do not independently verify factual details. This includes basic but critical information such as names, addresses, dates, entity details and Australian Business or Company Numbers. Errors or inconsistencies in these details can have material consequences in legal documents and transactions. In practice, a solicitor’s role includes verifying the accuracy of factual information using appropriate searches, registers and source documents before advice is given or documents are prepared.
3. Inability to Identify and Manage Legal Risk
AI tools do not autonomously exercise legal judgment. They do not independently decide what legal issues exist in a matter or whether all necessary questions have been asked, unless a human prompts them to do so. As a result, they are unable to recognise issues that have not been raised, identify gaps or assumptions in the information provided, or anticipate how a matter may evolve over time. In many legal matters, the most significant problems arise not from the primary issue, but from related or downstream consequences that are not immediately obvious.
Legal advice also requires weighing legal risk against practical, commercial or personal considerations. In many matters, there is no single “correct” legal answer. Decisions often involve choices about timing, cost, risk tolerance, negotiation position, ongoing relationships and long-term consequences. AI tools are not capable of making these evaluative judgments or translating a client’s objectives and constraints into strategic legal advice.
A core function of a solicitor is to identify, assess and manage legal risk before it crystallises. This includes spotting issues a client may not be aware of, testing assumptions, identifying compliance obligations, and advising on the most appropriate course of action in light of both legal and practical considerations. In practice, many disputes and compliance issues arise precisely because a risk was not identified early or was not properly weighed. This form of issue-spotting and judgment requires legal training, experience and professional discretion, which AI tools are not capable of exercising.
4. Confidentiality, Privilege and Data Security Risks
Legal professional privilege is a fundamental protection that prevents confidential communications between a client and their solicitor from being compelled to be disclosed or used against the client in legal proceedings.
Using AI may involve the disclosure of confidential, commercially sensitive or legally privileged information. This can occur where a client inputs descriptions of their matter, draft documents, correspondence or legal questions into an AI platform outside the solicitor–client relationship. Depending on the circumstances, disclosure of privileged information to third parties, including through the use of AI platforms, can result in privilege being waived. Once privilege is lost, it cannot be restored.
Australian solicitors are subject to strict confidentiality obligations under professional conduct rules and legal profession legislation, and are required to take reasonable steps to protect client information. Court processes, including disclosure and evidence procedures, proceed on the assumption that privileged material is carefully controlled. By contrast, most AI platforms are not subject to these obligations and may store, process or reuse information in ways that are not transparent to the user.
Where confidential or legally privileged information is input into an AI tool, there is a real risk that sensitive material may be exposed beyond the client’s control or later become unavailable for privilege claims. This can have serious consequences in disputes, regulatory investigations or transactions. Clients should therefore exercise caution and seek advice before using AI platforms in connection with sensitive legal information.
Practical Note: Volume Without Clarity
While AI can be useful for organising thoughts or preparing background information, clients should be mindful that AI-generated summaries can sometimes contain broad generalisations, overstatements or unnecessary volume. Legal advice is most effective when it is based on clear, accurate facts and primary source documents. Providing large volumes of AI-generated material may require additional time to review, verify and clarify, and may not always assist in progressing a matter efficiently.
In practice, concise factual summaries and original documents are often more helpful than lengthy AI-generated narratives.
Using AI Effectively When Working With Your Solicitor
AI can be a useful support tool when used thoughtfully alongside professional legal advice. It may assist clients in organising background information, identifying questions to discuss with their solicitor, or understanding general legal concepts before a meeting. When used in this way, AI can help clients engage more effectively in discussions with their solicitor and make better use of legal advice, without replacing the role of professional judgment.
ABKJ Lawyers provides expert legal advice across a broad range of areas, including property law, commercial law, family law, wills and estates, litigation and related legal matters. Our team has extensive experience assisting individuals, families and businesses on the Gold Coast and throughout Queensland with matters that require careful legal judgment and professional oversight.
If you need advice on how AI may relate to your situation, or require tailored legal assistance, contact ABKJ Lawyers on (07) 5532 3199 or enquire online for professional advice.
