video1.0<iframe src="https://www.loom.com/embed/e94d6926a0f541a9ac09cc8e84f6220b" frameborder="0" width="1920" height="1440" webkitallowfullscreen mozallowfullscreen allowfullscreen></iframe>14401920Loomhttps://www.loom.com14401920https://cdn.loom.com/sessions/thumbnails/e94d6926a0f541a9ac09cc8e84f6220b-d7b64f87d4d63564.gif301.425In this video, I discuss a recent incident where a large U.S. law firm, Gordon Reece Scully, faced embarrassment due to AI-generated errors in a bankruptcy court filing, resulting in over $55,000 in attorney and legal fees. This highlights the growing issue of AI hallucinations in legal documents, as we now track 487 cases of such occurrences. I emphasize the importance of auditing AI-generated drafts, as lawyers must transition from simply drafting to ensuring accuracy and reliability. I urge all firms to implement a site-checking policy and ensure comprehensive training on AI risks. Remember, while generative AI can save time, human oversight is crucial at every stage of the process.