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Review Finds AI Chatbots are “Useless” When Answering Bankruptcy Law Questions

As artificial intelligence becomes part of our everyday lives, chatbots have been increasingly used to answer a wide range of questions, including legal inquiries. While programs such as ChatGPT and Gemini might provide immediate information on an infinite number of subjects, an attorney and legal historian found significant errors when he sought responses on key bankruptcy law issues. This experiment underscores the importance of an attorney’s human judgment and experience when someone requires knowledgeable counsel regarding debt relief. 

In his paper, Josiah M. Daniel III asked popular chatbots to handle the types of challenges typically faced by bankruptcy attorneys, including the preparation of a proof of claim and the test for Single Asset Real Estate. While the chatbots provided responses that might have seemed accurate to a layperson, there were enough serious problems that Daniel referred to the chatbots as “useless” in this field. If you rely on AI to guide you through the legal process of bankruptcy, there are numerous potential risks, including:

  • Inaccurate information — Answers received by Daniel included errors, oversimplifications and details seemingly invented out of thin air. Failure to abide by filing requirements or providing false information could prevent a debtor from securing bankruptcy protection.   
  • Lack of contextual understanding — Bankruptcy law involves complex, fact-specific analyses. Moreover, each individual and business owner seeking relief has their own unique priorities, which cannot be addressed by AI no matter how detailed the prompt might be. 
  • Questionable sources — You can never be sure where a chatbot got their information from. The response to your question could incorporate outdated laws, exemptions from other jurisdictions or even material not meant to be accurate information, such as parody not recognized by AI.  

Bankruptcy law is not just about understanding statutes and regulations—it’s about interpreting them in light of a client’s unique circumstances. Errors in this area can have significant financial and legal consequences. An experienced bankruptcy attorney can help you by providing insight and advocacy tailored to your specific situation and needs. Moreover, a lawyer has a professional obligation to give you honest, accurate information, as opposed to a computer program that can never be held accountable.  

Jeff Field & Associates delivers comprehensive bankruptcy counsel to Georgians from offices in Douglasville, Gainesville, Bogart, Lawrenceville, Marietta and Decatur. Please call 404-381-1278 or contact us online to schedule a consultation.

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