AI in Law: Avoiding the Pitfalls of AI-Generated Citations

Family law matters are tough enough without the added blow of unexpected costs. Many Australians enter family court proceedings unprepared for the full financial burden, not just legal fees, but the hidden costs that creep in along the way. Artificial intelligence (AI) is making waves in the legal profession. From drafting documents to streamlining research, lawyers are increasingly turning to AI-powered tools to save time and reduce costs. But as with any new technology, there are risks—particularly when it comes to accuracy and reliability.

One of the most concerning issues to emerge is the rise of AI-generated citations that don’t actually exist. In recent months, courts in Australia and abroad have dealt with cases where lawyers unknowingly submitted documents containing fake case law created by AI systems. The consequences? Damaged reputations, wasted client money, and in some cases, professional misconduct proceedings.

Why AI-Generated Citations Are a Problem

AI language models (like ChatGPT and similar tools) are designed to generate text that sounds right, not necessarily text that is right. This means they can create case names, legislation references, or journal articles that look legitimate but don’t exist in reality.

For a profession built on accuracy and precedent, that’s a serious problem. If a lawyer relies on AI-generated material without verifying it, they risk:

• Misleading the court – Submitting incorrect authorities can undermine a case and attract judicial criticism.
• Overcharging clients – Billing clients for research that turns out to be false or unusable.
• Professional consequences – Failing to exercise proper diligence can breach professional obligations under the Legal Profession Uniform Law.

The Cost Implications for Clients

When lawyers don’t double-check AI-assisted work, clients often end up paying the price. Time spent preparing documents with false citations may be billed—even if that work ultimately has to be redone. This can lead to inflated invoices and unnecessary costs, particularly in complex litigation where research plays a central role.

At Law in Check, we regularly see bills that contain charges for excessive research or unnecessary work. With the rise of AI, this problem could get worse if firms pass the cost of “fixing” AI errors onto their clients.

How Lawyers Can Use AI Responsibly

AI isn’t inherently bad for the legal sector—it just needs to be used with care. Here are some best practices:

• Always Verify Sources Any citation or reference generated by AI must be cross-checked against trusted databases like AustLII, Jade, or LexisNexis.
• Disclose Use of AI Where Relevant Being transparent with clients (and, if necessary, the court) about the use of AI tools helps maintain trust.
• Use AI for Efficiency, Not Authority AI can be great for generating first drafts, summarising long documents, or spotting patterns—but it should never be the final word on case law.

What Clients Should Watch Out For

If you’re working with a lawyer, here are some red flags that may indicate AI misuse or careless research practices:

• Vague or incomplete citations in correspondence or court documents.
• Being charged for multiple hours of research without clear outcomes.
• A lawyer who avoids explaining where their legal authorities came from.



If you’re concerned you may have been billed unfairly for inaccurate or unnecessary legal work, you have the right to request an itemised bill and, if needed, challenge those costs through a formal assessment.

Final Thoughts

AI will no doubt play a growing role in the future of law. But while it offers exciting opportunities, it also comes with risks—especially for clients who could end up paying for mistakes.

At Law in Check, our mission is to make sure clients are protected from unfair billing practices, whether the errors come from outdated processes or new technologies like AI.

If you believe your lawyer has overcharged you—or you’ve spotted questionable research in your legal documents—get in touch with us. We’ll help you review your bill and ensure you’re only paying for work that’s accurate, necessary, and fair.

See here for 5 tips to ensure your legal fees remain reasonable.