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Surge in AI-related litigation tipped as regulators, class action firms circle

Moves by companies to stay up to date in the AI race will create new litigation threats for corporate Australia in 2025.

Technology related disputes pose a major litigation threat for companies in 2025. Shutterstock.

Corporate Australia's growing embrace of artificial intelligence could lead to an uptick in litigation against third party technology vendors, and lawsuits from shareholder groups, when things invariably go wrong.

That's the consensus that emerged when Capital Brief spoke to top corporate lawyers about the outlook for litigation in the digital economy in 2025, with AI related claims, digital transformation projects and third party technology all at the top of the agenda.

Lawyers say moves by companies to stay up to date in the artificial intelligence race and other rapid technological changes in recent years will create new litigation threats for corporate Australia this year.

“It’s hard to see a world where disputes between large tech providers and customers isn’t a major theme in the next 12 months”, Jonathan Ellis, a partner at law firm Bird & Bird said.