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Thursday, May 21, 2026

The algorithm is not your lawyer: the limits (and dangers) of AI tools - Financial Post

Artificial intelligence is rapidly embedding itself into corporate decision-making. In many HR departments across North America, AI tools are now drafting termination letters, summarizing workplace investigations, estimating severance ranges and even offering views on whether a dismissal complies with statutory requirements.

The efficiencies are obvious. The risks, less so.

AI can be a valuable administrative tool. But it is increasingly being used not merely to assist but to replace professional legal judgment. That shift should concern employers.

Modern AI systems can summarize legislation, reference case law and articulate legal tests with impressive apparent fluency. The output is polished, structured and often persuasive.

But that fluency creates a false sense of credibility — even certainty.

Employment law is among the most fact-specific areas of law. A termination clause that appears enforceable may be void because of subtle drafting defects. An investigation that follows procedural steps may nonetheless fail on fairness grounds. Constructive dismissal cases frequently turn on context, credibility, motive and evolving appellate interpretation.

  • Weigh credibility
  • Assess how local courts are trending on particular issues
  • Detect latent human rights implications
  • Identify strategic risks in negotiation or litigation
  • Evaluate how a fact pattern may be reframed by opposing counsel

The result is not necessarily an incorrect analysis, but it’s an incomplete one. And...



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