Federal Court Releases AI Transparency Statement

The Federal Court of Australia has released a clear and measured statement on the use of artificial intelligence (AI) in court processes, reflecting both the potential benefits and risks of emerging technologies. While AI tools like chatbots and text generators can enhance efficiency, the Court emphasises that their use must align with legal and ethical standards to ensure fairness, accuracy, and accountability.
A key concern is the reliability of AI-generated content. The Court warns that AI systems may produce errors, biases, or “hallucinations” (fabricated information), which could undermine legal proceedings. Lawyers and litigants are reminded that they remain responsible for the accuracy of any submissions, even if AI aids in drafting them. Misleading or incorrect AI-generated material could lead to serious consequences, including cost orders or sanctions.
Privacy is another critical issue. The Court cautions against inputting confidential or sensitive case details into public AI tools, as this data could become part of the system’s training set and be exposed to third parties. Additionally, AI should not replace independent legal judgment; decisions must be based on human expertise, not algorithmic outputs.
While the Federal Court acknowledges AI’s potential to streamline research and administrative tasks, its statement underscores the need for caution. The legal profession must stay informed about AI’s limitations and ensure compliance with professional obligations. As AI evolves, courts and practitioners will need to adapt policies to safeguard the integrity of the justice system while harnessing technology’s advantages.