October 14, 2025
The Office of the Superintendent of Bankruptcy (OSB) would like to remind Licensed Insolvency Trustees (LITs) and their staff to apply appropriate due diligence when using artificial intelligence (AI) tools in all aspects of their work.
The growing prevalence of AI presents significant opportunities and efficiencies. At the same time, it is important that LITs maintain the highest standards of professionalism in their work. As officers of the Court and regulated service providers, LITs are accountable for the completeness and accuracy of content as well as the protection of privacy in all materials they produce, including insolvency documents, court filings and communications with stakeholders. This applies to LITs and their staff, and the OSB encourages LITs to ensure proper guidance, training and protocols are in place to ensure the responsible, ethical and secure use of AI in order to protect the integrity of the insolvency system.
Key points to consider when using AI:
Maintaining human oversight: It is important to always bear the limitations of AI in mind. AI programs reflect the biases in the data on which they are trained on. It is important to review all materials generated by AI to ensure that the result is accurate and unbiased. AI is not a replacement for human judgement and oversight.
Vigilance: Reports and other documents produced by the LIT must be based on verifiable sources and accompanied by supporting evidence.
Accuracy: AI can make mistakes regarding facts and it can generate false or invented information. Please refer to Ko v. Li, 2025 ONSC 2965 related to a motion decision on the issue of AI hallucination. Also note that models may not reflect the most recent information as their reference database may only be updated periodically. LITs are responsible for verifying the accuracy of the materials generated by AI.
Cybersecurity and Privacy LITs must carefully consider privacy and cybersecurity when utilizing AI tools being mindful of the fact that many AI programs are public and, as such, sensitive personal and financial information should not be entered as this could result in unauthorized disclosure.
Transparency: LITs should clearly indicate where they have used AI to create some or all of the content. They should specify which parts were generated by AI and mention the AI tools used.
LITs and their staff are advised to familiarise themselves with guidance available in their respective jurisdiction(s). The resources listed below are examples of such guidance, which is not always available in both official languages.
- Nova Scotia — Use of Artificial Intelligence (AI) in Proceedings before the Registrar in Bankruptcy
- Québec — Notice to Profession and Public – Integrity of Court Submissions When Using Large Language Models
- Ontario — Using technology - Lawyer | Law Society of Ontario ( Artificial intelligence)
- British Columbia — Registrar’s Filing Directive (s. 7.3 Use of Litigation Aids & Artificial Intelligence (from the Court of Appeals))
- Alberta — Notice to the Profession & Public - Ensuring the integrity of court submissions when using Large Language Models and Gen AI Rules of Engagement for Canadian Lawyers - Law Society of Alberta
- Manitoba — Use of Artificial Intelligence in Court Submissions
- Yukon Territories — Practice Directions – Use of Artificial Intelligence Tools
- The Federal Court of Canada — The Use of Artificial Intelligence in Court Proceedings.
The OSB has published the above list of resources on its website.
As part of ongoing professional development, the OSB encourages LITs and their staff to seek training on the ethical, effective and secure use of AI tools to keep up with the rapidly evolving issues.