Alberta Court of Appeal comments on use of Artificial Intelligence by Lawyers

ALIA reminds Alberta lawyers to use caution and exercise diligence when using generative artificial intelligence (“Generative AI”) tools such as ChatGPT or other large language models in their practices. In the recent decision of Reddy v Saroya, 2025 ABCA 322 (“Reddy”), the appellant filed a factum that was found to contain references to fabricated case authorities. The appellant’s counsel advised the Alberta Court of Appeal (“ABCA”) that he had retained a third party to draft the factum and had not verified the cited cases prior to submission. Ultimately, the appellant was permitted to file an amended factum, with potential cost consequences to follow.

In Reddy, the ABCA reiterated the professional responsibilities of lawyers opting to utilize Generative AI tools in their practices. The ABCA stressed that lawyers are required to verify and cross-reference submissions generated by Generative AI, and that if a “lawyer engages another individual to write and prepare material to be filed with the court, the lawyer whose name appears on the filed document bears ultimate responsibility for the materials form and contents.” 

The ABCA cited three key resources guiding lawyers’ responsibilities and obligations in the use of Generative AI in their practices.

First, the ABCA noted that Rule 3.1-2 of the Law Society of Alberta’s (the “Law Society”) Code of Conduct requires lawyers to perform all legal services to the standard of a competent lawyer, and that the relevant commentary explains that lawyers should “develop an understanding of, and ability to use, technology relevant to the nature and area of a lawyer’s practice and responsibilities.”

Second, the ABCA cited the Law Society’s “Generative AI Playbook” as a resource which should be the “starting point for Alberta lawyers seeking to harness the benefits of disruptive technologies like [Generative AI] while safeguarding their clients’ interests and maintaining their professional competence.”

Finally, the ABCA cited the Alberta Courts’ Notice to the Public and Legal Profession dated October 6, 2023, titled “Ensuring the Integrity of Court Submissions When Using Large Language Models” (the “Notice”) as a tool to be followed to reinforce the integrity and credibility of legal proceedings. The Notice urges those using Generative AI to 1) exercise caution when referencing legal authorities or analysis derived from Generative AI, 2) rely exclusively on authoritative sources, and 3) ensure there is always a “human in the loop” to verify any AI-generated submissions with “meaningful human control.”

For more information about practice directions issued by Canadian courts, see the May 2024 ALIAdvisory: Practice directions push for transparency when Artificial Intelligence is used in legal matters as ChatGPT inaccuracies make headlines. Note that several Canadian courts have issued further practice directions since this ALIAdvisory (i.e. in Nova Scotia and Quebec).  

In addition to potentially significant consequences for clients, the ABCA warned that lawyers who do not adhere to the Notice may also face consequences which will be within the discretion of the panel or individual judge. The ABCA stressed that counsel (and self-represented litigants) “should not expect leniency where they have failed to adhere to clear and unambiguous requirements.” Courts may consider remedies including striking submissions or imposing costs awards (including against counsel personally). Courts may even determine that a penalty should be imposed, contempt proceedings initiated, or that a referral to the Law Society is warranted. In Reddy, the ABCA invited further submissions from the parties (including the appellant’s counsel) on whether the panel should direct that the appellant’s lead counsel pay a cost award, and if so, in what amount.

ALIA adds to this warning that the Alberta Lawyers’ Professional Liability and Misappropriation Indemnity Group Policy does not cover penalties or costs awarded personally against a Subscriber as a result of the Subscriber’s conduct in litigation.

Reddy is an important reminder that lawyers who use Generative AI in their practices must understand the potential benefits and risks, exercise caution and conduct meaningful cross-referencing in every instance to ensure that citations and content hold up to scrutiny.

Some Roster Lawyers May Need Additional Coverage

ALIA is advising Subscribers who are on the Alberta Government’s Family Mediation Program Services roster (the “Roster”) that their ALIA indemnity coverage may not meet the Roster’s insurance requirement.

Alberta Justice recently rejected a Subscriber’s Certificate of Indemnity, which was issued by ALIA and described ALIA’s professional liability and misappropriation coverage. The certificate was rejected because it lacked the necessary insurance for Roster Subscribers.

Alberta Justice subsequently advised ALIA that lawyers (and other professionals) on the Roster need insurance in the amount of $2 million per Occurrence, dedicated to Alberta Justice, without an additional insured provision, and insuring against bodily injury, personal injury, and property damage.

The Alberta Lawyers’ Professional Liability and Misappropriation Group Policy (the “Group Policy”) covers damages and defence costs related to actual or alleged errors in the rendering of professional services to others by Subscribers, subject to the terms, conditions, limits, and exclusions under the Group Policy.

The Group Policy limits for professional liability coverage are $1,000,000 per Occurrence ($250,000 sublimit for lawsuits in a foreign jurisdiction outside of Canada) and $2,000,000 in the aggregate per policy year. An Occurrence may include related errors and multiple claimants. The Group Policy excludes coverage for claims arising from bodily injury or property damage except in limited circumstances.

Consequently, ALIA cannot dedicate $2 million per Occurrence to Alberta Justice or provide coverage for all personal or bodily injury or property damage, as required by Alberta Justice for the Roster.

ALIA cannot advise on the availability of insurance to satisfy Alberta Justice’s requirements. Please note that other coverages, such as CGL (Commercial General Liability) insurance, are available through commercial brokers, and excess insurance for ALIA’s professional liability coverage is available through the Canadian Lawyers Insurance Association (“CLIA”) and commercial brokers.

If Subscribers have questions on whether their indemnity or insurance coverage meets Alberta Justice requirements for the Roster or any other Government of Alberta roster, ALIA suggests they review their contract with Alberta Justice and/or contact their roster program for further information.

Any summary of the Group Policy contained above is provided for general information purposes only and not as legal advice and is qualified in its entirety to the terms and conditions of the Group Policy. Subscribers should always review the Group Policy, which is available on the ALIA website, to confirm their obligations in any circumstance. 

Important Survey Reminder

As mentioned in the December 9 ALIAction, you should have received an email from surveys@thinkwellresearch.ca on December 9 or 10 providing you with a unique link to ALIA's Subscriber Survey.

Thank you to all the Subscribers who have already completed the Survey! If you have started but not completed the Survey, you can use the same link to continue from where you left off.

If you did not receive the email and you have checked your Spam folder, please contact Jessica.Dorsey@alia.ca.

Your input is extremely valuable to us. Your feedback will fundamentally shape our strategy in the coming years.

ALIA does not provide legal advice. ALIAdvisory newsletters, ALIAlert warnings, ALIAction notices, and the content on ALIA’s website, notices, blogs, correspondence, and any other communications are provided only for the general information of members who participate in the indemnity program and do not constitute legal or other professional advice or an opinion of any kind. This information is not a replacement for specific legal advice and does not create a solicitor-client relationship. If you think you would benefit from legal advice, please contact an Alberta lawyer directly.

Your policy is the contract that specifically and fully describes your coverage, and nothing stated herein revises or amends the policy. Links to third-party websites are provided for convenience only; ALIA does not vet or endorse the information contained in linked websites or guarantee its accuracy, timeliness, or fitness for a particular purpose.

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