The way professionals use artificial intelligence is evolving. AI tools are becoming part of everyday business operations, from drafting documents to conducting research and analysing information. However, a recent Australian court decision serves as a timely reminder that nothing can replace professional responsibility. When technology gets the facts wrong, it is still the human behind the document who pays the price.
The case of Mertz & Mertz involved court documents containing misleading and inaccurate legal authorities. The Full Court concluded that the use of AI during the preparation of submissions resulted in incorrect citations being presented to the Court. Although amended documents were later filed after the errors were discovered, the issue had already come to the Court’s attention.
Perhaps the most significant aspect of the case was the Court’s approach to accountability. Arguments that the AI had been used by a junior staff member rather than the supervising solicitor did not remove the solicitor’s professional responsibility. The Court referred the practitioners involved to their respective professional regulators and ordered additional costs associated with correcting the AI-generated errors. One solicitor was personally ordered to pay an additional $10,000 in costs due to the inaccuracies.
What This Case Teaches Professionals
| Issue | What Happened | Key Lesson |
| AI-generated research | Non-existent legal authorities were cited | Always verify sources manually |
| Delegation to staff | Responsibility was passed to a junior employee | Supervisors remain accountable |
| Court submissions | Incorrect information reached the Court | Accuracy cannot be outsourced |
| Professional conduct | Practitioners were referred to regulators | AI mistakes can trigger disciplinary action |
| Financial consequences | Additional costs were awarded | Errors can become expensive |
The decision has reignited debate about the role of AI in the legal profession. Australian courts have generally adopted a practical approach. The message is not that AI is prohibited, but that it should be treated as a tool rather than a final authority. Increasingly, courts expect lawyers and other professionals to independently verify any AI-generated material before relying upon it.
The lessons extend beyond the legal profession. Property transactions involve contracts, title searches, easement investigations, zoning information, settlement figures and financial transfers. While technology can improve efficiency, buyers and sellers should remember that important decisions still require careful human review. Whether negotiating a transaction, reviewing a contract or completing a settlement, accuracy remains critical.
Flash Conveyancing Advice
Technology is a valuable assistant, but it should never be your final decision-maker. Before signing any document or committing to a property transaction, ensure the information has been reviewed by qualified professionals. Taking the time to verify details today can help prevent costly mistakes tomorrow.
Julian and Renee from Flash Conveyancing believe that accountability remains essential in an increasingly automated world. While technology can improve efficiency, property transactions require experience, judgement and attention to detail that no algorithm can replicate. With extensive experience across Blacktown, Hawkesbury, Blue Mountains, The Hills, Hornsby and Parramatta council areas, they help buyers and sellers confidently navigate complex property matters throughout Acacia Gardens, Glenwood, Marsden Park, Schofields, Riverstone, Tallawong, Kellyville, Castle Hill, Rouse Hill, Box Hill, Dural, Norwest, Windsor, North Kellyville, Winston Hills and surrounding suburbs. When your property, finances and future are on the line, Julian and Renee ensure every detail is carefully checked, independently verified and handled with the professional care that technology alone cannot provide.
