This all feels very familiar. Everywhere I turn businesses are being offered “cutting edge” products promising great rewards. But do we really understand how they work? Do the people selling these products understand them? Can we trust the sellers in the marketplace and how will these solutions fit into our businesses and deliver on their lofty claims?
Last time it was financial products, this time it is AI products. Last time it was major Banks doing the selling, this time it is tech businesses of all shapes and sizes. Both in booming markets with regulation struggling to keep up, a huge imperative for sellers to adapt and take advantage of the opportunities. Many sellers are genuine and want to deliver solutions for their clients, but the financial rewards of closing a deal are also significant.
This isn’t an anti AI piece. I’m all in on AI – both personally and professionally. We use it now and have bigger plans ahead. I’ve seen it work both in law and industry. In industry the opportunities are genuinely massive; I have a logistics client that has recently transformed their distribution network with AI, reducing miles travelled and environmental impact, and boosting profits. In law and for a litigator (as I am) there are several excellent options for early case assessment and improved information around developing cases and areas of law.
So why is my perspective relevant? I’m a business owner with the same desire to use AI and tech to create efficiencies for our team and give the best possible outcomes to our clients, but I am also a litigation specialist who dealt with disputes throughout the financial crisis and its aftermath on both sides, defending major Banks and pursuing them, for clients who had been mis-sold products. And right now, I feel a sense déjà vu.
My experience at the 2025 edition of an annual legal tech and AI conference was telling. More space, higher-calibre speakers, glossier booths. However, most attendees, like me, wanted substance. We asked: “How does this actually work? How will it integrate with our current systems? Can it be trusted? What are the risks?”
When it comes to my firm, Tyr, a recent experience has made me question some of the players in the market. Following a brief conversation with one well known provider at a conference they sent me a demo of their product (which I didn’t ask for and didn’t actually use). However, this one interaction alone was enough for them to add my firm’s logo to their website as a ‘technology partner’. When this was queried they said it was all in their website t&cs – we should all read the small print!
My clients are also talking to me about their growing unhappiness as certain products sold in the last few years are failing to deliver, in some cases due to the speed of movement of the tech, in others because they simply never could have done what it said on the tin. Mis-selling claims are on the rise and unhappy buyers looking to exit contracts are beginning to speak to lawyers. Institutional investors in the US are already suing over “AI washing”; major corporates exaggerating AI capabilities to inflate valuations. In 2024, class actions for such claims more than doubled from 2023.
In short: Massive new markets are exposed to abuse and AI hype can lead to people and businesses overstepping the mark and making promises they can’t keep.
Meanwhile, UK AI regulation is wrestling with itself. Public demand is soaring – 87% of us want laws ensuring AI is safe before release, and 60% support banning “smarter-than-human” AI. The government? It’s still weighing the options. So far, the UK has pursued a flexible “principles-based” approach, with no sweeping AI laws. Regulators like the ICO, FCA, and Ofcom apply existing rules sector-by-sector. An AI Bill, aiming to introduce tougher oversight and an AI Authority, hasn’t made it close to the statute books.
Here are a few ideas that might help anyone navigating the AI market:
- Audit everything. Understand what you’re buying, how it operates and what it guarantees. Make a clear record of the underlying systems being used and the protections that are being promised around your information.
- Flip the conversation. Push for clarity, not vague outcomes. Agree specific, measurable deliverables and get them in the contract.
- Ask for proof. Ask for transparency and demonstrations on how products work and spend some time testing them. Take references from suppliers for other users of their product and make contact with them to confirm their experiences.
- Use an AI Audit. Assess existing and incoming contracts legally to ensure alignment with your business goals. If you are unhappy, speak to a lawyer and consider your options.
The déjà vu only goes so far, the AI revolution will change the world and be more fundamental to our way of life than anything that has happened in financial services over the past 20 years. Blending my business leadership with my litigation insight, I genuinely believe that AI can be a huge force for good, but there are also dangers – unfortunately not everyone in the market has your best interests at heart. Be informed, do your homework, know the risks, and ensure AI products deliver what they promise.
Contact details
Alistair Kennedy alistair.kennedy@tyrlaw.co.uk +44(0)7958 335327 +44(0) 113 512 1096
