AI hallucination cases in Australia
In the matter of Bayfoyle Pty Ltd
[2025] NSWSC 1607
| Detail | What the trackers record |
|---|---|
| Court | Supreme Court of New South Wales |
| Jurisdiction | New South Wales |
| Date | 23 December 2025 |
| Who used AI | Lawyer |
| Tool named by the trackers | Not named |
| Sanction for the AI use | No professional sanction |
| Outcome | Declined to refer to the Legal Services Commissioner (left open to the other party) |
| Citation | [2025] NSWSC 1607 |
Summary from the trackers
Corrected against the judgment text on 10 Oct 2026. This remains a summary from the trackers.
OBITER
Black J accepted that the solicitor cited several non-existent cases, likely generated by artificial intelligence. He declined to refer the solicitor to the Legal Services Commissioner and left that step to the other party. He said the citations had little impact on the gross-sum costs order.
Court AI rules
Sources
- OBITER AI Hallucination Cases: Australia
- AustLII
- AI Hallucination Cases Database, Damien Charlotin (CC BY 4.0)
All AI hallucination cases in Australia · New South Wales · Court AI practice notes