Professional Duties

From 1 July 2026, an estimated 90,000 Australian businesses become reporting entities under Tranche 2 of the AML/CTF reforms. Most have been focused on the anti-money laundering obligations themselves. Far fewer have noticed what arrives at the same time: for most of these businesses, 1 July also marks the first time the Privacy Act 1988 (Cth) has ever applied to them.

While GenAI tools present opportunities for faster research and drafting, for example, they also introduce significant risks that Australian solicitors need to manage. Recent cases across multiple jurisdictions demonstrate the potential for serious consequences in the event of improper use of GenAI. This article examines these risks and provides practical guidance for law firm managers to implement appropriate safeguards and maintain professional standards within their law practice.