“AI doesn’t actually know your business.”

That’s the line from our Associate in Commercial Litigation, Scott Lambert, in a new Employment Hero feature article on the legal compliance risks now facing Australian SMEs.

Scott walks through a recent matter where a business used unverified AI to generate its terms, conditions and policies. The result, in his words: “Almost every single policy was non-compliant, unlawful, and it actually got them into some very hot water.” A national product recall followed. Cost: hundreds of thousands of dollars, before defence costs.

What most people get wrong is treating AI-drafted terms as a finished product rather than a starting point. AI can streamline workflows. It is not a substitute for documents that need to reflect your business model and current Australian law.

Simon Obee, Head of HR Advisory at Employment Hero, makes the same point about decay over time: a contract that was perfectly compliant a few years ago — before changes like the ban on pay secrecy obligations or fixed-term contract restrictions — can be a compliance minefield today.

The right move here can mean the difference between a few thousand dollars upfront and a seven-figure problem later.

Read the full piece on Employment Hero:

⬇️ The 100m fineprint trap threatening Australian SMEs

About The Author - Scott Lambert

Areas of Practice & Expertise Scott is an Associate in the Commercial Litigation team at PCL Lawyers. He advises clients across a wide range of commercial, contractual, and regulatory matters,...