Fair Work Commission cracks down on AI-driven legal filings as case numbers jump

A former ALDI employee, Sadnan Khan, was penalised by the Fair Work Commission for using a paid version of ChatGPT as a quasi-legal adviser in a futile attempt to overturn his dismissal, resulting in a $1,230 cost order. Deputy President Michael Easton highlighted that Khan ignored clear warnings that his claim lacked merit and that proper reading of AI-generated replies would have revealed its futility. The commission’s commissioned research indicates a 40% surge in filings, driven in part by litigants turning to generative AI for legal guidance.

New procedural changes effective from October 20 will require applicants to disclose AI usage, verify citations, and provide supporting evidence, with a standardized prompt template now available. The tribunal noted that AI can improve access to justice for genuine claims but warned that misuse may lead to costly penalties. Parallel cases, such as Gregory Baker’s AI-aided successful challenge of casual employment rules at Macquarie University, demonstrate both innovative applications and the limitations of current AI tools. Law professor Genevieve Grant cautioned that inaccurate prompts produce poor results and suggested tribunals may adopt stricter tools to deter unmeritorious AI-driven claims.