At Nath Solicitors, we have seen a growing number of clients seeking legal assistance after using AI tools to draft contracts, file claims, or respond to legal proceedings. While AI offers rapid access to information, cost savings, and efficiency, it also presents significant risks when used without a proper understanding of procedural, legal, and jurisdictional rules.
In July 2025, 20.2 million people in the UK used AI tools, representing a 112% growth from July 2024. This surge increases the likelihood of procedural errors, adverse cost orders, and even injunctions arising from misuse.
Nath Solicitors is calling attention to the core dangers of using AI in legal matters.
1. Hallucinations
AI hallucinations are false or misleading outputs generated by the AI platforms and tend to happen because of factors such as limited training data, bias, or incorrect model assumptions. In the legal context, hallucinations can produce fake cases, invalid arguments, or inaccurate documents with errors leading to sanctions, wasted costs or cases being struck out. A 2024 Stanford study found that general-purpose chatbots hallucinated between 58% and 82% of the time on legal queries.
In Ayinde v London Borough of Haringey and Al-Haroun v Qatar National Bank, the lawyers who had allegedly used AI-generated legal research cited five false cases. The court emphasised that the legal argument was valid, but the use of fake cases was unnecessary and dangerous. As a result, wasted costs were ordered against the solicitors and barrister by the High Court.
Accuracy and precision are essential in legal matters, with no margin for error. For this reason, seeking professional legal advice from the start helps ensure your documents and strategy are accurate and compliant. At Nath Solicitors, we combine efficiency with rigour; and although we use AI to streamline tasks, we verify all results for accuracy and relevance.
2. Legal Nuances
AI tools like ChatGPT cannot replace a lawyer’s nuanced understanding of legal principles. It lacks judgment to identify subtle yet critical issues such as tax implications, hidden liabilities, or clauses distinguishing contractors from employees. Improper exclusion or inclusion of a clause in a contract for instance, may lead to unintended legal and financial exposure.
Nath Solicitors is led by Shubha Nath, Founder and Managing Director, bringing over 35 years of experience as a solicitor. Therefore, we understand the legal intricacies that could make all the difference to your case. Our team ensures your contracts and legal proceedings are precisely drafted and strategically sound.
3. Confidentiality and Privacy
Entering sensitive information into public AI chatbots risks exposure, as many AI chatbots retain users’ input and often use it to train future models. This could inadvertently expose confidential or sensitive details.
As a firm regulated by the Solicitors Regulation Authority, we maintain strict confidentiality in line with the UK GDPR and the Data Protection Act 2018 and never input client names or case details into public AI systems. All client data is securely managed within our internal systems, and our use of AI is carefully monitored to ensure full legal and ethical compliance. Protecting client information and upholding professional integrity remain central to our practice.
Conclusion
We acknowledge that AI is a beneficial tool for improving efficiency, cost effectiveness and saving time. However, it cannot substitute legal expertise or professional judgment for complex legal cases. Using AI without verification could compromise the validity of a contract, breach confidentiality or result in costly procedural errors. When you seek advice from Nath Solicitors, you ensure your rights are safeguarded, clarify your liabilities, ensure compliance and give you confidence that your legal matters are handled with accuracy, diligence and integrity.
Contact Nath Solicitors
If you need legal assistance, contact Nath Solicitors today. Please call us on 0203 983 8278 or email us at enquiries@nathsolicitors.co.uk.