Artificial Intelligence (AI) tools are flooding the legal sector, promising easier and cheaper access to legal advice. But often, these tools can cause more confusion than clarity.

AI legal tools frequently aim to simplify complex legal language. In theory, this is beneficial. But in practice, it's not always the case.

Consider a detailed contract clause: "If any party wishes to provide a formal notice under this agreement, it must be clearly expressed, written and personally delivered or sent via electronic mail or facsimile to an address specified in the agreement for this express purpose." An AI tool simplifies this to, "If you need to tell the other person something important, you can do it in person, or send them a letter, email, or fax." Sounds simple, doesn't it?

But there's a critical error – the AI tool removes the crucial "in writing" requirement. According to the real clause, notice must be written to be valid. If a user relies on the AI’s interpretation and gives notice verbally, they've breached the requirements of the contract. This mistake, induced by the AI, could lead to serious legal consequences.

These potential pitfalls show that while AI legal tools may seem beneficial, they can guide users towards legal missteps. If these mistakes result in litigation, both users and providers might be in trouble. Providers may even face claims of breach of contract, misrepresentation, negligence, or breach of the Australian Consumer Law for misleading conduct in trade or commerce, potentially creating precedent-setting legal cases.

Instead of making lawyers redundant, these issues prove their enduring value. Lawyers offer more than legal knowledge; they understand the spirit of the law, something AI cannot currently grasp. They discern subtleties, understand context, and exercise judgement – all crucial in law, where every detail can change the outcome.

The problems with AI legal tools also highlight a regulatory gap in legal tech. As AI has the potential to reshape the legal sector, it requires stringent regulation. Lawyers must drive the creation of these regulations, ensuring AI supplements human expertise, not replace it.

In summary, while AI can be a helpful tool in law, it's not a one-size-fits-all solution. Users and providers must understand its strengths and weaknesses. Simplification can lead to complication, and legal errors are expensive. Providers of AI legal tools should beware – a basic lesson in law may not be far off.