
An Abu Dhabi court has imposed costs of ₹63 lakh on law firm MIO Legal Consultants LLP for filing pleadings that relied on AI-generated, non-existent legal authorities in a commercial dispute.
The Court held that lawyers remain personally responsible for verifying every authority, even when using AI tools, and found that the errors reflected classic AI hallucinations.
It rejected justifications based on time pressure, lack of resources or unpaid fees, stressing that unreliable pleadings cannot be excused on those grounds.
[Arabyads Holding Ltd. v. Gulrez Alam Marghoob Alam]
Thanush SBookmark