Checklist · Capital Markets & Securities — ECM/DCM and Disclosure
Review checklist for AI-related statements in disclosure documents and annual reports ('AI washing')
Checklist for testing every statement an issuer makes about its use of AI against evidence, covering capability, performance, revenue, governance and risk-factor claims, with the Australian misleading conduct tests and a US enforcement example.
- Kind
- Checklist. Steps or checks to work through and tick off.
- Where it applies
- Australia, United States
- AI use
- Yellow AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at
- 17 October 2026
- Status
- Maintained. Checked against the cited sources on 17 October 2026.
- Version
- 1
- Source
- Written for this library
When to use it
Use before lodging a prospectus, annual report, investor presentation or announcement that describes the issuer’s AI capabilities or strategy. Also useful for website and marketing claims that investors may rely on.
How AI may be used
AI may find and list AI-related claims across documents. Whether each claim is supported is checked against evidence by a lawyer and the issuer’s technical staff.
AI may
- Find and list every AI-related statement across the prospectus, annual report, presentations and website, with locations
- Flag superlatives, quantified claims and forward-looking statements about AI
- Compare AI claims across documents for inconsistency
AI must not
- Must not decide that a claim is substantiated
- Must not draft new capability or performance claims
- Must not process unpublished technical or commercial information in an unapproved tool
The lawyer checks
- Each claim traced to evidence a technical owner has signed off
- Forward-looking AI statements have documented reasonable grounds
- Risk factors describe the issuer’s real AI dependencies and regulatory exposure
Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.
Read the full text
The full text is for signed-in accounts. It is free. When you sign in you can:
- read the whole precedent, with its drafting notes beside it;
- copy it, or download it as a Word file or Markdown;
- add it to your firm’s knowledge base, so colleagues can find it;
- let the AI tools you connect read it from that knowledge base.
The summary, the law it rests on and the AI-use guidance above stay public. Privacy.
More in Capital Markets & Securities — ECM/DCM and Disclosure
- Continuous disclosure policy and disclosure committee charter
- Trading halt request letter to ASX
- Due diligence planning memorandum and verification protocol for a prospectus
- Checklist for AI-assisted verification of offer and disclosure documents
- Securities trading policy (closed periods, clearance, exceptions)
All precedents for Capital Markets & Securities — ECM/DCM and Disclosure · Tasks and AI use in this area