Legal Risks Rise as AI Enters Canadian Courtrooms

As the use of artificial intelligence (AI) in Canadian courtrooms increases, legal professionals are raising concerns about potential errors and penalties. Lawyers are observing a significant uptick in clients using AI tools to draft legal documents, often without full awareness of the risks involved. This trend has implications for the accuracy of submissions and the overall integrity of the legal process.

AI Tools and Legal Proceedings

Ron Shulman, a family lawyer based in Toronto, has noted a marked change in client communications over the past few months. Clients who typically communicate through brief emails are now sending long messages that appear to be influenced by AI technologies. Shulman reports that nearly every week, his firm receives material that has been generated or edited by AI, with many clients relying on these tools to guide their legal decisions.

While AI can assist in summarizing information effectively, Shulman warns that it often lacks accuracy. He points to a growing trend where individuals attempt to represent themselves in court using AI-generated documents, which can complicate proceedings and increase costs as legal professionals sort through potentially erroneous materials.

AI’s influence in the legal sector has led to notable incidents. For example, a Toronto lawyer is currently facing a criminal contempt of court charge after including fabricated cases generated by ChatGPT in her submissions. When questioned by the judge, she initially denied the discrepancies, later revealing in a letter that her misrepresentation stemmed from embarrassment and fear of repercussions.

Financial and Reputational Risks

Failure to disclose AI usage can result in significant financial penalties. In one case, a Quebec court imposed a $5,000 sanction on an individual who relied on generative AI for legal filings after parting ways with legal counsel. Similarly, Alberta’s top court ordered a $500 cost against a self-represented litigant for including fictitious legal authorities in her submissions, warning that non-compliance with court guidelines regarding AI could lead to more severe penalties in the future.

Legal professionals across Canada are grappling with the challenges posed by AI. Ksenia Tchern McCallum, an immigration lawyer licensed in both Canada and the United States, encounters clients who present AI-generated applications for review. This reliance on technology can undermine client trust and complicate communication. “AI can scout the internet and tell you typically what’s part of this process, but my experience and knowledge of what works and doesn’t work is what the AI cannot catch,” McCallum explained.

Online forums also encourage those facing immigration issues to utilize AI to prepare filings, leading to further complications. McCallum notes that courts are recognizing these AI-generated materials and penalizing self-represented litigants for failing to disclose the use of AI or for citing non-existent cases.

Guidance and Best Practices

In response to these emerging challenges, organizations like the National Self-Represented Litigants Project are stepping in to offer guidance. Jennifer Leitch, the executive director, emphasizes the need for responsible AI use. The organization recently hosted a webinar attracting 200 participants, aimed at educating self-represented litigants on how to use AI safely and appropriately in their legal matters.

Leitch views this educational approach as a form of harm reduction. She advises individuals to verify any cases referenced by AI and to adhere to court guidelines regarding submissions. As AI technology continues to evolve, its potential to enhance access to justice remains significant, but the current landscape demands caution.

Nainesh Kotak, a personal injury and long-term disability lawyer in the Toronto area, asserts that law firms must incorporate AI to remain competitive. He stresses the importance of having legal professionals review AI outputs to ensure compliance with privacy and professional standards. “AI is a tool, and it cannot replace legal judgment, ethical obligations, and human understanding,” Kotak stated.

As AI technologies become increasingly integrated into the legal landscape, the balance between innovation and caution will be crucial. Legal professionals advocate for a careful approach to harness the benefits of AI while mitigating the risks of inaccuracies and penalties.

This report was first published on December 31, 2025, by The Canadian Press.