The Federal Court of Australia has issued a stern warning to the legal profession regarding the use of generative artificial intelligence (AI) in court proceedings. Chief Justice Debra Mortimer stated that the presentation of false or inaccurate information, often generated by AI, is unacceptable and inconsistent with the responsibility to not mislead the court. New guidelines specify that lawyers must verify the accuracy of AI-generated citations and ensure that any use of AI in legal documents is disclosed at the beginning. Notably, there have been 73 identified cases where AI led to false citations and errors in court filings. Mortimer emphasized that while the court supports the use of technology to enhance efficiency, it must be used with caution to avoid undermining the justice system. Those who violate the new rules may face adverse costs and compliance issues. The court's concerns reflect a growing trend where AI-generated content is increasingly scrutinized, with past instances leading to significant professional consequences for legal practitioners.