Daijiworld Media Network – New Delhi

New Delhi, Jul 2: The Supreme Court on Thursday directed the Bar Council of India (BCI) to formulate guidelines regulating the use of Artificial Intelligence (AI)-generated legal material, while adopting a "zero-tolerance" approach towards the citation or reliance on fabricated or AI-generated judicial precedents.

A Bench comprising Justices P.S. Narasimha and Alok Aradhe passed the directions after finding that the National Company Law Tribunal (NCLT) had relied on several non-existent judgments and fabricated extracts, apparently generated using AI, while admitting insolvency proceedings against Essel Infraprojects Ltd. The National Company Law Appellate Tribunal (NCLAT) later upheld the order without detecting the errors.

Setting aside both the NCLT and NCLAT orders, the apex court observed that the issue extended beyond a single insolvency dispute and raised serious concerns about the integrity of the judicial system.

"It is necessary for courts to adopt a zero-tolerance approach towards producing, citing or using AI-generated precedents without proper verification," the Bench observed. The court further stated that citing fabricated judgments without verification would amount to professional misconduct on the part of advocates, while judicial reliance on such material would constitute a serious lapse.

Drawing a strong comparison, the court said the use of fake AI-generated legal precedents was comparable to the release of methyl isocyanate, describing it as "invisible, insidious and catastrophic" for the justice delivery system.

Recognising the growing challenges posed by AI in legal practice, the Supreme Court directed the BCI to constitute an expert committee to frame norms governing the use of AI-generated legal content. The committee will also examine safeguards and recommend disciplinary action against lawyers who knowingly submit fabricated AI-generated authorities as genuine judicial precedents.

The judgment comes amid increasing instances of AI-generated "hallucinations" appearing in legal proceedings both in India and abroad. The Supreme Court noted that similar concerns had surfaced in commercial disputes before it, while the Delhi High Court had also witnessed petitions containing non-existent judgments and fabricated quotations generated through AI tools.

The Bench reiterated that while AI could be a useful aid in legal research and court administration, it cannot replace human judicial reasoning.

"We are committed to adopting AI technology in aid of adjudication, while ensuring complete human control over the decision-making process at every stage," the court observed, underlining that the final responsibility for judicial decisions must always rest with judges.