As generative AI tools become more widely available, Ontarians are increasingly turning to platforms like ChatGPT or Gemini to answer legal questions or even draft letters, agreements, and settlement proposals. What may seem like a quick and cost-effective shortcut can lead to significant legal risk. Ontario law is complex, highly contextual, and constantly evolving; three characteristics that AI systems are not equipped to fully understand or apply.
While AI can be useful for general information and preliminary research, it is not a substitute for advice from a qualified lawyer. In fact, relying on AI-generated content can create new legal problems, undermine your position in a dispute, and expose you to liability that could have been avoided with proper counsel.
Why More Clients Are Turning to AI, and Why It’s a Problem
Generative AI tools are appealing because they provide fast, confident answers to almost any question. They can draft documents in seconds, summarize broad topics, and present information in a clear, authoritative tone. For individuals facing a legal issue, this confidence can be persuasive, especially when they are anxious, overwhelmed, or attempting to reduce legal fees.
The problem is that generative AI systems are designed to generate text, not to analyze legal rights, identify risks, or provide advice grounded in Ontario legislation or jurisprudence. These systems do not assess evidence, ask for clarification, or apply judgment. Instead, they produce responses that sound correct, even when the underlying information is inaccurate, outdated, or incomplete.
For lawyers, this is increasingly visible in client interactions. Many practitioners are encountering letters, agreements, or legal strategies clearly generated by AI. These communications often contain fundamental mistakes that could jeopardize a client’s rights or expose them to unnecessary claims. Some clients even ask lawyers to “sign off” on AI-generated documents, not realizing the liability, inaccuracies, or missing provisions that make such documents unreliable.
AI Is Designed to Sound Confident, Not to Be Correct
Unlike a lawyer, generative AI does not understand goals, context, or consequences. Its primary function is to predict text that resembles patterns found in its training data. The result is a tool that prioritizes plausibility over accuracy.
This creates a dangerous paradox: AI can produce a legal answer that appears polished and authoritative, even when it is completely wrong. This is known as “hallucination”, where the system confidently fabricates statutes, cases, procedures, or legal obligations that do not exist.
For example, an AI system may:
- Cite a case or statute that never existed, is grossly out-of-date, or has been overturned;
- Apply law that is jurisdictionally incorrect for the problem at hand (e.g. using American law for Canadian problems, or cases from a different province);
- Misstate limitation periods or procedural deadlines;
- Omit essential contractual terms; or
- Present an oversimplified “strategy” that contradicts governing legislation or court rules or does not consider the need for a case-by-case analysis.
A non-lawyer may not spot these errors, while a qualified, experienced lawyer will. Further, in many cases, following this incorrect information can lead to irreversible damage to a client’s legal position.
AI Cannot Account for the Nuances of the Law
Legal disputes rarely turn on general principles alone. They depend on factual nuance, industry practice, legislation, regulations, and the evolving body of case law. A single clause in a statute, a minor detail in a timeline, or an overlooked fact can significantly alter the entire analysis.
AI systems cannot gather these facts or probe for missing details. They also cannot assess credibility, identify red flags, or consider practical realities, such as how a judge in Ontario is likely to interpret a provision or how opposing counsel may respond.
For example, an employment law issue may hinge on whether workplace policies were followed, how the employee’s duties evolved, or whether the Employment Standards Act interacts with the common law in the case’s particular circumstances. Or a commercial real estate issue might depend on zoning bylaws, survey results, municipal rules, or lender requirements.
Without understanding the complete context, AI may offer advice that appears logical in theory but fails entirely in practice. Lawyers, by contrast, are trained to identify missing facts, clarify details, and apply judgment; all things AI cannot do.
AI Cannot Predict Legal Consequences or Liability
One of the most troubling trends is the rise in AI-generated “strategy recommendations.” Users input a scenario and receive a confident-sounding plan of action: demand this, refuse that, notify the other party of this, or withhold something until a certain event occurs.
These strategies can be dangerous and can have consequences that a non-lawyer (and indeed an AI system) cannot foresee. Sending a letter, making an allegation, withholding payment, or refusing a request may trigger statutory obligations, violate contractual terms, or constitute a breach of good faith.
Lawyers see the real-world consequences of these decisions every day. AI does not. Without understanding the broader legal ecosystem, AI-generated strategies can lead clients into disputes that are far more expensive than the legal fees they were trying to avoid.
AI-Generated Documents Often Look Legitimate but Fail Under Scrutiny
Another emerging concern is the use of AI to draft legal documents such as demand letters, agreements, settlement proposals, or corporate documents. These often read well on the surface, but the substance is deeply flawed.
Common issues include:
- Missing mandatory provisions;
- Incorrect statutory references;
- Inconsistent terminology or contradictory clauses;
- Obligations that are unenforceable under Ontario law (or the law of the jurisdiction governing the agreement); or
- Misstatements of rights.
In litigation, opposing counsel can quickly identify these errors, weakening the client’s position and credibility. In contractual relationships, poorly drafted agreements can lead to disputes, financial loss, or unenforceable terms. Even something as simple as a demand letter can escalate conflict if written with inaccurate assumptions.
AI Cannot Provide Confidential, Personalized Legal Advice
When you consult a lawyer, the advice you receive is protected by solicitor-client privilege, tailored to your situation, and grounded in professional judgment. Lawyers adhere to strict ethical obligations, maintain professional liability insurance, and are accountable for the quality of their advice.
AI offers none of these protections. Conversations with AI are not privileged or inherently confidential. The tool does not verify facts, does not warn you when a question has missing information, and does not carry professional liability. It cannot advise you on risks, strategy, or consequences. It also cannot represent your interests in negotiations or before a court.
This distinction is crucial: AI can provide general information, but only a lawyer can provide legal advice.
Understanding AI as a Helpful Tool; Not a Replacement for Legal Advice
Generative AI can help simplify complex concepts for clients, refine the tone or grammatical structure of communications, or organize information for ease of reference. However, AI is incapable of replacing a lawyer’s assistance in legal matters. Relying on AI for legal advice or document drafting is like relying on a search engine for medical diagnosis: you may get something that sounds plausible, but it is no substitute for a trained professional who understands the law, the facts, and the consequences.
For those facing legal issues, the safest and most effective path forward is to speak with a qualified lawyer who can provide personalized advice, review documents, explain your options, and protect your rights.
Contact Willis Business Law for Trusted Business, Employment, and Labour Law Advice in Windsor-Essex County
If you have questions about your legal rights in a business, employment or labour law matter, or are considering taking action based on information you found online or through an AI tool, contact Willis Business Law. Our team of knowledgeable, experienced lawyers will review your situation, provide clear and reliable guidance, and help you avoid the risks that come with relying on inaccurate or incomplete information. To book a confidential consultation, please call (519) 945-5470 or reach out online.