Policy · Insolvency, Restructuring & Bankruptcy
Protocol for AI-assisted review of company books and records in insolvency investigations
Protocol for administrators, liquidators and their lawyers using AI to triage company books, bank records and emails: approved tools, chain of custody, permitted and banned uses, verification before anything reaches creditors, ASIC or the court, and audit records.
- Kind
- Policy. A policy or procedure for a firm or client.
- Where it applies
- Australia
- 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 on 17 October 2026 against the 7 authorities it cites, for Australia.
- Version
- 1
- Source
- Written for this library
When to use it
Adopt at firm level, or for a single appointment, before any AI tool is used on a company's books and records, bank statements, emails or examination material. Do not use as a substitute for the court's practice notes where the material is to be used in proceedings.
How AI may be used
Close supervision. AI is well suited to classifying records, building chronologies and flagging candidate voidable transactions, but every finding that reaches a report, a demand or the court must be checked against the source records by a named person.
AI may
- Classify and index documents, OCR scanned records and extract parties, dates and amounts with source references.
- Flag candidate unfair preferences, related-party payments and uncommercial transactions within the look-back periods for human review.
- Summarise email threads for relevance to investigation topics set by the responsible practitioner.
AI must not
- Must not make findings about insolvency, a person's liability, misconduct or the date of insolvency.
- Must not draft any affidavit, examination answer or witness's evidence.
- Must not receive examination transcripts, subpoenaed material or material under suppression or confidentiality orders unless the conditions in clause 7 are met.
- Must not be used on records in a tool whose terms allow training on inputs or storage outside approved locations.
The lawyer checks
- The tool is on the approved list and its terms have been reviewed for confidentiality, data location and training.
- Sampling shows the tool's classifications and extractions are reliable enough for the task.
- Every figure and allegation in a report to creditors or ASIC is tagged to a verified source document.
- AI use in preparing evidence is disclosed where the court's practice note requires it.
Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.
Official form
Open the official form. Always use the current version from the issuer.
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 Insolvency, Restructuring & Bankruptcy
- Creditor's statutory demand (Form 509H) and verifying affidavit: drafting and service checklist
- Creditor's bankruptcy notice: AFSA online application completion guide
- Letter of advice to directors on insolvent trading and the safe harbour
- Liquidator's letter of demand for repayment of an unfair preference
- Declaration of independence, relevant relationships and indemnities (DIRRI), with appointment lodgement checklist
- AI-use verification checklist for insolvency court documents (winding-up, set-aside and recovery applications)
All precedents for Insolvency, Restructuring & Bankruptcy · Tasks and AI use in this area