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ARTICLE · 19 MAY 2026

“AI Doesn’t Actually Know Your Business.”

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AustraliaTechnology

That’s the line from our Associate in Commercial Litigation, Scott Lambert, in a new Employment Hero feature article on the legal compliance risks now facing Australian SMEs.

Scott walks through a recent matter where a business used unverified AI to generate its terms, conditions and policies. The result, in his words: “Almost every single policy was non-compliant, unlawful, and it actually got them into some very hot water.” A national product recall followed. Cost: hundreds of thousands of dollars, before defence costs.

What most people get wrong is treating AI-drafted terms as a finished product rather than a starting point. AI can streamline workflows. It is not a substitute for documents that need to reflect your business model and current Australian law.

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