Using AI as a tool in the provision of professional services can present reputational harm challenges, particularly in instances where the information extracted from an AI tool is not verified and the correct understanding of the information produced by the same is not applied properly.

Clients expect a service provider to serve their best interests and verify information, amongst other expectations. Where there is an open rebuke in a court of law for failure to verify certain information provided by an AI tool, it casts a certain perception about a service provider which may be damaging going forward. In recent cases of Mavundla and Northbound Processing, respectively, non existent cases were referenced in court documents.

Whilst there was no conclusive confirmation on the legal practitioners part in terms of whether AI tools were used for the non existent cases referenced, the court warned of the risks of using unverified information in court documents.

Key lessons

Have policies in place to govern the use of AI tools in business operations.

Use AI wisely. As a service provider, always verify the information provided by an AI tool.

Advise clients on your use of AI in the provision of professional services.

Ensure that data protection laws are complied with when using AI tools.

This article is for information purposes only and does not constitute professional legal advice. Please consult an attorney for your own unique circumstances.