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Introduction
As generative AI tools become increasingly common in Australian workplaces, a recent case involving a Sydney business owner has highlighted the serious consequences of relying too heavily on artificial intelligence for routine tasks.
Details of the Incident
Michael, the director of End Of Lease Cleaning Melbourne, turned to AI to streamline client communications and reduce his team’s email response time. The AI tool generated business quotes and service details—but occasionally made costly errors. One repeated mistake was listing a full wall clean, valued at $500–$700, instead of the cheaper spot clean service.
The most expensive error occurred in March 2025, when an AI-generated email misquoted a high-value cleaning job. Michael quickly skimmed the email and sent it to the client, unaware of several inaccuracies. A week later, the customer chose a competitor, resulting in a $2000 loss for the business.
Industry Warnings and Legal Considerations
Legal experts Robyn Chatwood and Michael Park from Dentons warned that employees are ultimately responsible for verifying AI-generated content. AI “hallucinations,” where incorrect facts are generated, can lead to misinformation and breaches of confidentiality or copyright laws.
Workers cannot shift blame to AI, even in small businesses. If a tool makes a mistake, the user is still liable for its consequences. Experts urge all employees to follow their employer’s AI use policies and double-check outputs before using them in professional settings.
Policy Guidance and Workplace Precautions
Michael has since stopped using AI for business emails, reverting to manual communication methods. While this has increased response times, he said avoiding another costly mistake was more important. He advised workers to thoroughly check AI-generated messages before sending them to clients:
“If you are using AI, you definitely need to read everything two to three times before you send that email.”