AI legal advice can lack the nuance that legal questions are won or lost on. For example, a single word in a contract can shift liability entirely. A missed compliance requirement can result in a fine. Meaning that skipping out on legal costs now can lead to higher costs down the line.

Legal matters are nuanced, and AI outputs are generalised

AI is a next-generation token prediction tool. It predicts which word is most likely to follow the next in a sentence. This is based on patterns in its training data, not based on your specific legal needs. AI does not consider your specific context. Nor can it accurately interpret a complex legal system that relies on statutes, common law and customary law. Most lawyers also draw on their experience in similar legal matters and on some unspoken customs that apply in practice to give legal advice.

AI predicts while lawyers think. That difference matters.

We are in a changing regulatory environment

Most businesses operate under a complex regulatory environment, especially given the disruptions brought by data-driven and AI-enabled technologies. Regulations are not static. They constantly evolve, interact with one another, and require interpretation. AI tools trained on generalised, international data are poorly equipped for this context. They fail to give accurate, context-specific compliance guidance, especially if you are not asking the right legal questions.

Asking ChatGPT whether your data processing practices comply with POPIA is like asking a general practitioner to perform surgery. While they may be technically educated, they are not the right person for the job.

Use AI for low-risk and preparatory legal tasks

AI can have a legitimate role in legal work when used appropriately. An example is when you are dealing with repeatable, lower-risk tasks. This could be drafting a first draft of a privacy policy from a template or researching general legal concepts before a consultation can help you. The keyword is first-draft. The truth is that you will need a qualified practising legal professional to get you across the finish line, especially when the stakes are high.

AI can help with low-risk repetitive legal tasks, but where stakes are high, you need someone qualified.

Before using AI tools for a first draft on a legal matter, you need to understand some associated risks. Courts have found that AI conversations are not legally privileged. Uploading personal information, business information, or confidential legal details into an AI tool may also result in a data breach. So, before you upload any information into an AI tool, ask yourself whether you would publicly broadcast the same information online?

Our clients have a competitive advantage over AI-generated “legal advice”

We have seen instances where our clients’ counterparts used AI “legal advice” to support their legal arguments. On the face of it, the structure of the legal argument appears coherent. However, when we apply our minds, we find that the legal concepts and case law used to support the arguments were based on a different jurisdiction entirely. Because the law is very particular, this mistake can void the weight of any legal argument.

The cost of fixing AI’s legal mistakes almost always exceeds the cost of getting it right the first time.

Importantly, what applies under a different jurisdiction may not apply under your jurisdiction. So you should not solely rely on AI for legal advice. A trained legal professional can recognise the nuance in your legal matter. AI tools, on the other hand, are designed to find an answer that satisfies the user, not to be legally sound and provide you with legal protection.

In March 2025, OpenAI was sued by Nippon Life Insurance Company of America for  $10 million in punitive damages for practising law without a licence. Since this case was filed, OpenAI and other AI companies have added disclaimers to their AI outputs stating that users should not rely on AI for legal advice.

Actions you can take

AI tools are known to misinterpret legal precedents, distort relevant laws, and invent fictitious cases. A legal position based on flawed AI “legal advice” can cost you time and money and expose you to legal liability. If you want legal certainty, you should:

  • Use AI tools responsibly by joining our AI governance programme.
  • Get legally sound advice by asking us for a legal opinion on your specific matter, so you know exactly where you stand.
  • Validate your AI outputs by asking us to review AI-drafted documents.