Artificial Intelligence (“AI”) is developing at an extraordinary pace, and its influence is being felt across nearly every industry, including the legal profession. While AI tools can be helpful for research, organization, and drafting, courts across Canada are increasingly confronting a serious and growing problem: litigants and even lawyers relying on AI-generated legal materials that contain fabricated law.
In one of our previous blog posts, we discussed the risks of relying solely on AI to assist in court proceedings. In that case, a self-represented litigant used AI to draft their pleadings. The result was disastrous. Much of the legal authority cited simply did not exist. The litigant ultimately lost their case, was ordered to pay the opposing party’s legal costs, and was fined an additional $5,000 for making false representations to the Court. You can read that blog here.
Since then, the legal landscape has continued to evolve rapidly.
Courts Are Responding to the Rise of AI in Litigation
As AI technology advances, courts and regulators are adapting just as quickly. Some Canadian provinces currently require litigants or lawyers to disclose whether AI was used in preparing court materials. Ontario has not yet implemented a formal disclosure requirement, but it is not difficult to foresee such obligations emerging in the near future.
More importantly, courts are no longer treating AI misuse as a problem limited to self-represented parties. Judges are increasingly scrutinizing materials filed by lawyers themselves, and professional consequences are becoming more severe.
The message from the courts is clear: responsibility for accuracy cannot be delegated to technology.
A Surge in Cases Involving AI “Hallucinated” Law
Despite repeated judicial warnings, cases continue to emerge at a surprising frequency in which parties submit court documents containing AI-generated authorities that are partially or entirely fabricated. These so-called “hallucinations” occur when AI systems generate information that appears convincing but is factually or legally incorrect.
Courts across jurisdictions have responded with escalating penalties, including:
- Significant monetary fines against litigants;
- Cost awards requiring lawyers to personally pay the opposing party’s legal fees;
- Professional discipline consequences;
- Findings of misconduct affecting credibility before the court; and
- And more frequently, prosecution for criminal contempt of court.
What began as cautionary judicial commentary is now evolving into active enforcement.
Why Courts Treat AI Misuse So Seriously
Many people misunderstand why courts respond so strongly to inaccurate legal filings. The issue is not simply that mistakes were made.
When a party files materials with the court, they are typically certifying, affirming, or swearing that the facts and legal authorities presented are accurate. Lawyers, in particular, owe duties of candour and honesty to the court that form a cornerstone of the justice system. However, self-represented parties are not given a free pass for their AI mistakes, as representing yourself in court “carries with it obligations of self-education.”1
Submitting documents that rely on fabricated legal cases, even unintentionally, can amount to presenting false information to the court. From the court’s perspective, filing AI-hallucinated materials is not merely poor research. It may constitute a criminal misrepresentation.
Because courts depend on accurate legal authorities to make fair and lawful decisions, any conduct that undermines that reliability threatens the administration of justice itself. This is why sanctions can be severe, even where the misuse of AI was careless rather than intentional.
AI Is a Tool, not a Substitute for Legal Judgment
Artificial Intelligence can be useful when used appropriately and responsibly. However, it is not a substitute for legal training, professional judgment, or independent verification.
AI systems do not understand the law. They predict language patterns. As a result, they can confidently generate answers that appear authoritative while being wholly incorrect.
Courts expect litigants and lawyers alike to verify every authority cited and every legal argument advanced, regardless of how those materials were created.
How a Lawyer Helps Protect You
Engaging a lawyer provides more than assistance in preparing documents or appearing in court. A lawyer helps ensure that:
- the legal claims you advance are supported by real and applicable law;
- authorities cited to the court are accurate and properly interpreted;
- procedural requirements are met; and
- your case is presented responsibly and credibly.
In an era where AI tools are widely accessible, professional legal guidance is increasingly important. Proper legal representation not only strengthens your position but also protects you from unintended consequences that can arise from relying on unverified information.
Final Thoughts
Artificial Intelligence will undoubtedly continue to play a growing role in the legal profession. However, recent court decisions demonstrate that responsibility for accuracy remains firmly with the person signing and filing court documents.
The courts have made it clear: technology does not excuse misinformation.
Before relying on AI-generated legal materials or proceeding with court documents, it is wise to seek legal advice to ensure your rights are protected and your case is presented properly.
If you have questions about litigation and protecting or enforcing your legal rights, contact us today to book an appointment.