---
title: "Protocol for AI-assisted review of company books and records in insolvency investigations"
url: "https://ailawframework.com/precedents/insolvency-restructuring-and-bankruptcy/ai-books-and-records-review-protocol"
type: "precedent"
site: "AI Law Framework"
id: "a8-ai-books-and-records-review-protocol"
area_id: "A8"
kind: "policy"
ai_level: "yellow"
version: 1
law_stated_as_at: "2026-10-17"
---

# 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…

Canonical page: https://ailawframework.com/precedents/insolvency-restructuring-and-bankruptcy/ai-books-and-records-review-protocol  
Law stated as at: 2026-10-17

Site index for agents: https://ailawframework.com/llms.txt

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.

## Key facts

- Kind: Policy. A policy or procedure for a firm or client.
- Practice area: [Insolvency, Restructuring & Bankruptcy](https://ailawframework.com/precedents/insolvency-restructuring-and-bankruptcy.md)
- Jurisdictions: Australia
- AI level: Yellow. AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at: 2026-10-17
- Status: Maintained. Checked on 2026-10-17 against the 7 authorities it cites, for Australia.

## 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.

## Authorities

- [Corporations Act 2001 (Cth) ss 438B, 438D, 530B, 533 (books, reports to ASIC)](https://www.legislation.gov.au/C2004A00818/latest/text)
- [Corporations Act 2001 (Cth) ss 588FA, 588FE (voidable transactions and look-back periods)](https://www.legislation.gov.au/C2004A00818/latest/text)
- [Evidence Act 1995 (Cth) ss 50, 146, 147](https://www.legislation.gov.au/C2004A04858/latest/text)
- [Privacy Act 1988 (Cth) Sch 1, APPs 8 and 11](https://www.legislation.gov.au/C2004A03712/latest/text)
- [Federal Court of Australia, Use of Generative Artificial Intelligence Practice Note (GPN-AI) (16 April 2026) paras 4.5, 4.10-4.15](https://www.fedcourt.gov.au/law-and-practice/practice-documents/practice-notes/gpn-ai)
- [Supreme Court of NSW Practice Note SC Gen 23 – Use of Generative Artificial Intelligence (Gen AI) paras 9A-9B](https://supremecourt.nsw.gov.au/documents/Practice-and-Procedure/Practice-Notes/general/current/PN_SC_Gen_23.pdf)
- [Legal Profession Uniform Law Australian Solicitors' Conduct Rules 2015 r 9 (confidentiality)](https://legislation.nsw.gov.au/view/html/inforce/current/sl-2015-0244)

## Official form

[Official form](https://www.fedcourt.gov.au/law-and-practice/practice-documents/practice-notes/gpn-ai)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/insolvency-restructuring-and-bankruptcy/ai-books-and-records-review-protocol and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*