This episode examines how artificial intelligence is reshaping legal practice and the broader justice system. University of Melbourne Professor Jeannie Marie Paterson explores both the promise and the pitfalls – highlighting how AI can boost efficiency gains while raising critical questions about governance, transparency and the need for sustained human oversight. Drawing on real-word failures, she explains how opaque systems can embed bias and produce hallucinations that undermine legal ethics. The conversation also considers how regulation, professional responsibility and improved AI design can ethically enhance the legal system.Guest: Jeannie Marie Paterson, Professor of Consumer Protection and Technology Law at the University of Melbourne and a Fellow of the Australian Academy of LawCo-founding Director of the Centre for Artificial Intelligence and Digital Ethics (CAIDE)https://law.unimelb.edu.au/about/staff/jeannie-paterson | https://www.linkedin.com/in/jeannie-marie-paterson-225b4a33Host:Karen Finch, Head of Legal Policy and Innovation, Law Institute of [email protected] | www.linkedin.com/in/karen-finchEpisode OverviewThis episode explores how artificial intelligence (AI) is reshaping legal practice and the broader justice system. University of Melbourne Law Professor Jeannie Marie Paterson discusses both the promise and the pitfalls of AI, highlighting efficiency gains in tasks like document review and research, while stressing the need for strong governance, transparency and ongoing human oversight.The conversation examines real-world failures such as Robodebt and COMPAS, illustrating how opaque systems can embed bias and undermine legal ethics. Jeannie also addresses the growing issue of AI hallucinations, which can produce convincing but false legal information, reinforcing the importance of rigorous verification by lawyers.The episode considers how regulation, professional responsibility and improved AI design can support more responsible use of technology, as well as whether AI can improve access to justice and ethically enhance the legal system.Topics & Timestamps [00:24] Intro and guest welcome[01:38] How AI is currently helping lawyers[03:42] Benefits and challenges of predictive AI[04:46] Lessons from the Robodebt and COMPAS scandals[07:15] The issue of hallucinations[10:38] The importance of accuracy and transparency[13:14] Regulation challenges[15:14] Can AI improve access to justice?[17:56] What separates lawyers’ skills from AI?[20:30] What the future of AI and the law looks likeKey Takeaways:The opportunities for AI in law are almost unlimited, but most of the profession’s attention is currently on tools that do document and low-level diagnostic work.Predictive AI in law is useful but raises a lot of risk because it can amplify existing historic biases.An algorithm is only as good as the data it is trained on, so lawyers need to be wary of outcomes being hallucinations. They may sound legitimate but have no factual basis.It is challenging to consider regulating AI while the profession is still working out how to use it.AI could assist lawyers to broaden the scope of the services they provide.Whatever the future of AI use in the legal system, it must be used in a way that is ethical, responsible and transparent.Resources & Links:LIV Artificial Intelligence Hub –essential and up-to-date AI resources for Victorian practitionersEthical and Responsible Use of Artificial Intelligence – LIV AI Ethics Guidelines“Supervising AI” – LIJ article by the Legal Practitioner’s Liability Committee“AI and democracy” – LIJ article by The Honourable Justice Melissa PerryCentre for AI and Digital Ethics (CIADE)“Lessons from Robodebt” – LIJ article by Matthew Munro and Nidal SayeghAI Hallucination Cases Database“Pro bono: Simple high tech” – LIJ article on the Justice Connect triage toolFor the latest insights on Victorian legal developments and to hear directly from leading voices in the profession, subscribe to Cross-Examined on Apple Podcasts, Spotify or visit the Law Institute of Victoria website.Follow us on LinkedIn for legal insights and episode updates.Enjoyed the episode? Leave a rating to help other legal practitioners find and benefit from the series.About This Podcast:Cross-Examined is a new podcast from the Law Institute of Victoria. Tune in to hear experts discuss hot topics in the law and the changes shaping the legal profession. Regular episodes will cover everything from AI and cyber threats to ethical dilemmas, workplace taboos and practice management insights.This podcast is recorded on the traditional lands of the Wurundjeri people of the Kulin Nation. The Law Institute of Victoria acknowledges the Traditional Custodians of Country across Australia. We pay our respects to Elders past and present.Disclaimer:This podcast is for informational purposes only and is not intended to replace professional legal advice. The views expressed in this podcast do not necessarily reflect the views of the Law Institute of Victoria (LIV). The LIV is not responsible for any losses, damages or liabilities that may arise from the use of this podcast. Listeners should seek independent legal advice for their matters.Production Information:Produced by: The Law Institute of VictoriaProducer and audio editor: Garreth HanleyMusic: Garreth HanleyCopy and show notes: Louise SuretteConnect With Us:📧 Email: [email protected]🌐 Website: www.liv.asn.au🔗 LinkedIn: www.linkedin.com/company/law-institute-of-victoria📱 Apple Podcasts: Cross-Examined - Podcast - Apple Podcast🎵 Spotify: Cross-Examined | Podcast on Spotify