An AI model — like ChatGPT — generates a legal case reference that looks real but does not exist. Lawyers submit it in court documents. Judges read it. Nobody checks.
Large language models are trained to produce fluent, authoritative-sounding text. When asked to find supporting case law, they will invent plausible-sounding case names, neutral citations, and even fake summaries — a process researchers call "hallucination."
In a legal context, this is catastrophic. A barrister submitting Smith v Commonwealth [2019] NSWCA 142 when no such case exists has potentially misled the court. Yet without a mandatory audit trail or AI disclosure obligation, there is currently no systematic way to catch this.
Research from UNSW Law has documented over 73 such incidents in Australian courts and legal submissions between 2025 and 2026. The actual number is almost certainly higher — because no one is required to disclose AI use.