Justice Paul Heath KC of the Abu Dhabi Global Market (ADGM) Court of First Instance ruled on December 18, 2025, that the law firm MIO breached its professional duties by submitting unverified pleadings. The Court ordered MIO to pay AED 282,508 (approximately ₹63.3 lakh) to Arabyads Holding Limited as indemnity for wasted costs. The ruling highlighted that defects in the pleadings exhibited symptoms akin to those seen in outputs generated by Artificial Intelligence (AI) tools used without adequate verification. Emphasizing that reliance on technology does not exempt lawyers from their professional obligations, Justice Heath affirmed that while AI can aid legal practice, it poses risks of fabricated or misleading information. He cautioned that lawyers must verify all authorities revealed by AI, stating that failing to do so risks misleading the Court. This underscores the importance of maintaining rigorous verification standards in legal practices involving technology.
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Abu Dhabi Court Fines Law Firm ₹63 Lakh for Relying on Non-Existent, AI-Generated Legal References
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