Artificial intelligence (AI) is transforming the workplace. From drafting emails and summarizing documents to conducting legal research and analyzing data, AI has become an increasingly common tool across many industries.
However, recent events demonstrate that while AI can improve efficiency, it also carries significant legal and professional risks, particularly in regulated professions where accuracy, confidentiality, and professional integrity are paramount.
AI Is a Tool, Not a Substitute for Professional Judgment
Generative AI platforms such as ChatGPT, Notebook LM, and Claude can produce convincing work in seconds. However, they can also generate inaccurate information, fabricate legal authorities, or misinterpret facts with confidence.
Professionals remain responsible for verifying the accuracy of any work product generated with the assistance of AI.
In regulated industries, that responsibility cannot be delegated to technology.
A Recent Reminder from the Legal Profession
A recent Law Society Tribunal decision serves as a cautionary example. A lawyer’s licence was temporarily suspended after the Tribunal found she relied on false legal authorities generated by ChatGPT and subsequently misled the court about their origin.
While the decision arose in the legal profession, its lessons extend well beyond lawyers.
The issue was not simply the use of AI, it was the failure to independently verify its output and the resulting breach of professional obligations.
Why Regulated Workplaces Face Greater Risk
Professionals in regulated industries, including lawyers, healthcare providers, engineers, accountants, financial professionals, and other licensed occupations, are held to high standards of competence, honesty, and accountability.
Improper reliance on AI may expose professionals and their employers to risks including:
- Professional discipline
- Regulatory investigations
- Breaches of confidentiality or privacy obligations
- Inaccurate advice or decision-making
- Civil liability
- Reputational harm
- Loss of public confidence
Even where AI contributes to the work, the professional remains accountable for the final product.
Employers Should Be Proactive
Many organizations are embracing AI before implementing policies governing its use.
Employers, particularly those operating in regulated environments, should consider:
- Developing clear AI use policies
- Identifying tasks where AI should not be used
- Requiring independent verification of AI-generated work
- Protecting confidential and privileged information
- Training employees on the limitations and risks of AI
- Monitoring compliance with professional and regulatory obligations
Clear expectations can help reduce organizational risk while allowing employees to benefit from AI responsibly.
AI Governance Is Becoming a Workplace Issue
As AI becomes increasingly integrated into professional practice, employers should expect greater scrutiny from regulators, clients, and courts.
Questions such as: Was AI used? Was the output verified? Was confidential information uploaded? Who reviewed the final work product?
This may become increasingly relevant in investigations, disciplinary proceedings, and litigation.
Artificial intelligence has the potential to improve productivity, but it is not without risk. The recent Law Society Tribunal decision illustrates that improper reliance on AI can have serious professional consequences.
For employers operating in regulated industries, responsible AI governance is no longer simply a technology issue; it is a legal, regulatory, and risk management issue.
Contact Greenwood Law
If your organization is implementing AI tools, responding to concerns about employee use of AI, or developing workplace policies to manage AI-related risks, Greenwood Law can help.
Our team advises employers, regulated professionals, and organizations on workplace governance, regulatory compliance, workplace investigations, and employment law matters.
To learn how Greenwood Law can assist your organization, contact us to schedule a consultation.
