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Using AI for legal questions - risks - IT Law, Drafting and reviewing contracts,Discussions in regards of Domain names, Counselling on software- and licensing agreements

Legal blog

The Use of Artificial Intelligence in Legal Matters – Opportunities and Risks

2025-11-18 | IT Law

The Use of Artificial Intelligence in Legal Matters – Opportunities and Risks

1. Limited Insight Into Legal Processes

AI is often capable of providing concise answers to specific questions or presenting the logic of a particular issue. However, it lacks the ability to understand an entire legal process or assess long-term consequences. The legal aspects of a case often unfold through multiple stages, before various judicial or administrative bodies, sometimes over the course of several years. AI is not capable of adequately reflecting this complexity: it may successfully assist in moving from “point 1 to point 2,” but it cannot comprehend the multifaceted path that leads from “point 2 to point 10.”

It must also be noted that a truly skilled lawyer is not characterised merely by knowledge of the applicable legal rules, but by the ability to realistically assess the potential outcome of a matter, consider alternative avenues, and recognise when it is advisable to litigate or to settle. This requires a pragmatic and realistic approach—something that current AI models cannot reliably provide, as they often present answers that the user wants to hear rather than what the user needs to hear.


2. Fabricated Sources and Incorrect References

One of the most serious problems associated with generative AI is so-called “hallucination”: the system frequently cites legal provisions, academic articles, or court decisions with full confidence—even when these sources do not actually exist. This is particularly dangerous in the legal field, where the precise wording of a single statutory section may be decisive. Clients may easily be misled into believing that they have received well-founded and verified information, when in fact the citation is false or entirely fabricated.

Compounding this issue is the fact that AI systems often rely on open internet sources of highly variable reliability. AI is not necessarily capable of distinguishing between a professionally credible legal analysis and a casual posting on an informal online forum. As a result, the generated text may contain a mixture of accurate observations and entirely erroneous information, which poses a significant risk to clients.


3. Absence of Liability

Developers of AI systems explicitly exclude liability for the accuracy of content generated by their models. A well-known example is the widely publicised incident of August 2024, where misinformation concerning a chemical substance (sodium bromide) contributed to a poisoning event. OpenAI immediately emphasised that, under its Terms of Service, it accepts no responsibility for the system’s responses. This clearly demonstrates that using AI in legal matters is entirely at the user’s own risk.

By contrast, a lawyer assumes legal responsibility for the advice provided—offering a level of protection and security for the client.


4. The Advantages of AI – When Used Properly

Despite the risks, it would be a mistake to oppose the use of AI entirely. When applied with caution and sound judgment, the technology can be a valuable tool:

  • it can help clarify basic legal concepts,

  • summarise relevant legal fields,

  • highlight possible directions or approaches, and

  • save time during the initial information-gathering stage.

Thus, AI may serve as an excellent starting point—but it can never replace personalised legal advice given under professional responsibility.


5. Conclusion

Artificial intelligence is one of the most significant technologies of the future, and its development should not be hindered.

We do not wish to discourage our clients from using such tools: they may be safely consulted for quick guidance or for navigating the complexities of the legal system.

However, we politely but firmly recommend that in all serious legal matters, disputes, or situations requiring important decisions, clients should turn to a lawyer. AI may provide orientation, but it cannot substitute legal advice grounded in responsibility, professional experience and human judgment.

(The image used in this article was generated by the ChatGPT AI engine.)

If you require legal assistance, please feel free to contact our expert colleagues.

Phasing Out of the AVDH Authentication Service – Key Considerations for Businesses

2025-11-18
Phasing Out of the AVDH Authentication Service – Key Considerations for Businesses

As of 1 November 2025, the service of authentication of documents based on electronic identification (commonly known as AVDH) was discontinued.
This service was originally introduced by Act CCXXII of 2015 on Electronic Administration (hereinafter: the “Electronic Administration Act”), which also made electronic administration mandatory for economic operators. However, Act CIII of 2023 (hereinafter: the “Dáptv.”) initiated the gradual phasing-out of the AVDH service. Pursuant to Section 119 (2) of the Dáptv., private individuals have been prohibited from using the service since 1 January 2025, while economic operators were permitted to use it only until 31 October 2025.

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The Use of Artificial Intelligence in Legal Matters – Opportunities and Risks

2025-11-18
The Use of Artificial Intelligence in Legal Matters – Opportunities and Risks

Artificial intelligence (AI), and in particular generative models, have undergone explosive development in recent years. An increasing number of individuals rely on these systems for various informational, analytical, or even legal questions. There is no doubt that AI tools can be extremely useful: they provide rapid responses, are capable of processing vast amounts of data, and often offer easily comprehensible explanations.

At the same time, it is important to recognise that, due to the current functioning and limitations of AI systems, significant risks also arise — including within the legal domain. For this reason, it is advisable to use such tools consciously and with caution, and not to accept their output at face value, particularly where legal questions are concerned.

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What Can Cryptocurrency Traders Expect From the Second Half of 2025?

2025-11-18
What Can Cryptocurrency Traders Expect From the Second Half of 2025?

As of 1 July 2025, the regulation of cryptocurrency investments in Hungary has undergone significant changes.
The amendment came as a surprise even to industry professionals: although it had been known that reforms were planned, no one anticipated the final details of the bill as submitted and subsequently adopted.

In this article, we first present the revised regulatory framework, then provide a brief outlook and outline what investors and traders may expect in light of these changes.

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