The Federal Court Sets the Rules on AI

On 16 April 2026, the Federal Court of Australia issued a new practice note on the use of artificial intelligence in proceedings, signalling a clear expectation that practitioners use such tools with care and competence.
May 26 2026

By Myrna Taouil, Special Counsel

The Federal Court of Australia has introduced a new practice note on the use of artificial intelligence in proceedings, issued on 16 April 2026, signalling a clear expectation that practitioners engage with these tools cautiously and competently. The practice note reflects the increasing integration of generative AI into legal practice, particularly in research, drafting, and document review. For practitioners, the message is direct: efficiency gains are welcome, but not at the expense of accuracy or professional standards.

Central to the Federal Court’s practice note is the reaffirmation that duties owed to the Court remain unchanged, regardless of whether AI has been used. Practitioners must independently verify all authorities, submissions, and factual assertions, and cannot rely on AI outputs without rigorous checking. The Practice Note also flags the risk of “hallucinated” case law and subtle inaccuracies that may not be immediately apparent.

Importantly, the Practice Note raises confidentiality considerations, cautioning against the input of sensitive client information into AI platforms where data handling and storage practices may be unclear.

It further requires practitioners to maintain appropriate records of any AI use and to be in a position to clearly explain how AI tools were deployed in the preparation of material filed with the Court.

In some circumstances, the Court may also expect disclosure of AI use, particularly where it materially informs evidence or submissions.

For the profession, the practice note is both a warning and a framework for responsible adoption. It underscores that misuse of AI may expose practitioners to adverse costs orders, reputational damage, and potential disciplinary consequences. At the same time, it implicitly recognises that AI, used properly, can enhance productivity.

This approach contrasts with that adopted in the Supreme Court of New South Wales under Practice Note SC Gen 23, which takes a more prohibitive stance in certain areas, most notably restricting or prohibiting the use of generative AI in the preparation of evidence such as affidavits and expert reports without leave.

For lawyers practising across jurisdictions, the divergence in approaches between the Federal and NSW jurisdictions reinforces the need for a nuanced, forum-specific approach to AI governance in practice.

Useful Links

 

https://www.fedcourt.gov.au/law-and-practice/practice-documents/practice-notes/gpn-ai

 

https://supremecourt.nsw.gov.au/documents/Practice-and-Procedure/Practice-Notes/general/current/PN_SC_Gen_23.pdf