The Abu Dhabi Global Market (ADGM) Court has issued a detailed costs judgment that doubles as a practical guide for lawyers on the responsible use of artificial intelligence (AI) in litigation.

In a case arising from a dispute between Arabyads Holding Ltd (the Claimant) and former employee Gulrez Alam (the Defendant) (Case reference [2025] ADGMCFI 0032), the court addressed multiple costs applications and, crucially, sanctioned the Defendant’s former legal representatives for AI-related research failures that misled and burdened the Claimant and the court.

In this case, the legal representative of the Defendant prepared a defense spanning 327 paragraphs and 233 pages of exhibits, which required extensive review by the Claimant’s legal representative solely based on the number of pages submitted. In addition, the Claimant’s legal representative discovered that authorities within the pleading were fictious, wrongly cited, or not supportive of the proposition advanced.

In its judgment, among other points, the ADGM Court found that:

• AI research has increased in popularity among legal practitioners. However, it remains a legal practitioner’s obligation to verify any research prepared by an AI tool. This includes verification that the cited authorities exist and support the position that is advanced in the pleading. Without verifying any research, legal practitioners risk misleading the court by their submission. Failures in this case were described as “reckless,” amounted to a...

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