Warnings about AI misuse have intensified after lawyers from Morgan & Morgan faced potential sanctions for using fake case citations in a lawsuit against Walmart.

The firm's urgent email to over 1,000 attorneys highlighted the dangers of relying on AI tools, which can fabricate legal precedents and jeopardise professional credibility. A lawyer in the Walmart case admitted to unintentionally including AI-generated errors in court filings.

Courts have seen a rise in similar incidents, with at least seven cases involving disciplinary actions against lawyers using false AI-generated information in recent years. Prominent examples include fines and mandatory training for lawyers in Texas and New York who cited fictitious cases in legal disputes.

Legal experts warn that while AI tools can speed up legal work, they require rigorous oversight to avoid costly mistakes.

Ethics rules demand lawyers verify all case filings, regardless of AI involvement. Generative AI, such as ChatGPT, creates risks by producing fabricated data confidently, sometimes referred to as 'hallucinations'. Experts point to a lack of AI literacy in the legal profession as the root cause, not the technology itself.

Advances in AI continue to reshape the legal landscape, with many firms adopting the technology for research and drafting. However, mistakes caused by unchecked AI use underscore the importance of understanding its limitations.

Acknowledging this issue, law schools and organisations are urging lawyers to approach AI cautiously to maintain professional standards.