AI Law - International Review of Artificial Intelligence LawCC BY-NC-SA Commercial Licence
G. Giappichelli Editore

14/03/2025 - Grand Court Ruling: How AI Can Be Used in Legal Proceedings (Cayman Islands)

argument: Notizie/News - AI in Judicial Activities

Source: Harneys

The Grand Court has issued an important ruling on the use of artificial intelligence in legal proceedings, setting guidelines on when and how AI-generated materials can be submitted as evidence. The decision acknowledges AI’s growing role in the legal sector while stressing the importance of human oversight.

The case involved a dispute where one party attempted to rely on AI-generated legal arguments and case law summaries. The court examined whether AI-generated content could be considered legally admissible and what level of verification was required before submission.

A key concern raised in the ruling was the risk of AI "hallucinations"—errors where AI tools fabricate citations or misinterpret case law. The Grand Court emphasized that AI cannot replace human lawyers in making legal arguments, as AI-generated text lacks accountability and independent reasoning.

However, the ruling does recognize AI’s potential as a legal research tool, particularly in speeding up document review and identifying relevant precedents. The court suggested that AI-generated materials can be used to assist legal professionals but must be independently verified before being relied upon in litigation.

Legal experts see this ruling as an important step in defining AI’s role in courtrooms. While AI can enhance efficiency, courts remain cautious about its limitations and the need for human judgment in legal decision-making. The case is expected to influence future discussions on AI and judicial processes.