The Solari Institute · Reference · September 2026
The Cost of Unverified AI Output
In each of three recent matters, the AI system performed as instructed and no one verified the output before it left the organisation. In each, the consequence attached to the organisation that published the work, and in none of them to the tool. The reference sets out the three matters on one page and, on the second, which UAE authority governs which AI question.
Open the referenceThree matters
Arabyads Holding Limited v Gulrez Alam Marghoob Alam
[2025] ADGMCFI 0032, ADGM Court of First Instance, 18 December 2025
A defence citing authorities that did not exist or did not support the propositions advanced, researched with a generative AI tool and not verified before filing. The Court described the failure to verify as reckless and a breach of the ADGM Court Rules of Conduct.
AED 282,508 in costs ordered against the defendant's former legal representatives on the indemnity basis. The order attached to the firm.
PwC Middle East
Four published thought-leadership reports, 2024 to 2026
Reports found to contain fabricated citations and claims that a PwC framework had been adopted by named governments, for which no public evidence exists. PwC Middle East stated it was updating a limited number of supporting citations.
No fine and no refund. The cost was borne in public, on the firm's own name.
Deloitte Australia
Assurance review for the Department of Employment and Workplace Relations, 2025
A commissioned report containing academic references that do not exist and a quotation attributed to a Federal Court judge that was never given. Deloitte corrected the report and agreed to repay part of the fee.
Partial refund of the AU$440,000 contract value to a government client.
Which UAE authority governs which AI question
Counsel advising into the UAE answer to four layers of authority at once. The layers are stable even where the individual rules are not.
Federal
Federal Authority for Artificial Intelligence and Data, reporting to the Cabinet. Federal Decree-Law No. 45 of 2021 on personal data, with extraterritorial reach; the UAE AI Charter; the National Strategy for AI 2031.
Free zone
The DIFC Commissioner of Data Protection and the ADGM Office of Data Protection. DIFC Data Protection Regulation 10, in force 1 September 2023; ADGM Data Protection Regulations 2021.
Sector
The Central Bank of the UAE, the DFSA, the SCA, and the ADGM FSRA. CBUAE Guidance Note on the responsible adoption and use of AI and machine learning, 23 February 2026, with five principles.
Judicial
The DIFC Courts, the Digital Economy Court, and the ADGM Courts. DIFC Courts Practical Guidance Note No. 2 of 2023 requires disclosure of AI use, the source of AI-generated content, and its limitations or biases.
Instruments and authorities as at 22 September 2026. Not advice on UAE law; application to a specific matter requires UAE-qualified counsel.
AGL UAE · AI Governance in Law, United Arab Emirates
The four layers, examined
AGL UAE teaches the architecture above and the governance discipline it demands: jurisdictional mapping, the federal layer and personal data, DIFC Regulation 10 as a governance template, and court-facing use before the DIFC Courts. It is an accredited CLPD course with the Dubai Legal Affairs Department carrying 4 CLPD points (provider TC-2026-825, course code TC-2026-825-2102), online and self-paced, with a scenario-based examination and a verifiable digital badge on passing. You receive the course code for filing on completion.
Enrol in AGL UAERegistration and payment are completed on the Solari Institute course platform. Read the full credential page.