The Consequences of AI Counseling: Legal and Ethical Dangers in Machine Advice

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Recently Kevin Price, Host of the nationally syndicated Price of Business Show, interviewed Alexander Paykin.

The Alexander Paykin Commentaries

Artificial intelligence is increasingly used not just for tasks like translation or search, but for advice—on life decisions, relationships, career moves, and moral questions. Tools like ChatGPT or Replika simulate thoughtful, conversational guidance, leading many to rely on them as informal counselors. But this growing trend carries serious, often overlooked consequences.

AI-generated advice creates a false sense of authority. The language is confident, coherent, and sometimes even reassuring. Yet behind the words is no real understanding—just a prediction engine trained on vast datasets. These systems can’t assess context, grasp emotional nuance, or reflect on the consequences of their suggestions.

When users make significant life choices based on AI input—whether quitting a job, ending a relationship, or confronting a legal dilemma—they may suffer real-world harm. Unlike professional advisors or consultants, AI systems carry no legal duty of care. If a human counselor gives poor advice, they can be held accountable. When AI does, there’s typically no recourse. Most platforms shield themselves with disclaimers that state the information is for entertainment or general purposes only, regardless of how persuasive or specific it may sound.

There are also unresolved legal questions around data privacy. People routinely share personal stories and decisions with AI systems, unaware that their input may be stored, analyzed, or used to train future models. In jurisdictions like the EU, this may conflict with data protection laws such as the GDPR, which require clear consent for processing sensitive personal data. In countries like the U.S., where consumer privacy laws are more fragmented, users have even fewer guarantees.

Beyond the legal risks is the deeper ethical concern: users may start to outsource judgment to machines. Over time, turning to AI for personal decisions erodes self-agency and critical thinking. Worse, AI systems may carry subtle biases inherited from their training data, influencing users in ways that are neither visible nor accountable.

There is currently no consistent regulation that defines the boundaries of AI’s role in personal advising. Without clearer rules, platforms are free to offer what looks like guidance without taking on the responsibility that normally comes with it. Developers influence user behavior on a massive scale—yet can avoid consequences when that influence leads to harm.

Until robust legal frameworks are in place, users must treat AI-generated advice with caution. These tools can assist with brainstorming or offering perspective—but they should not be mistaken for wise, neutral, or reliable counsel. Advice without accountability is not just risky—it’s potentially dangerous.

 

 

Alexander Paykin, Esq., Managing Director of The Law Office of Alexander Paykin, P.C., based out of New York, focused his practice in real estate and commercial litigation and complex transactions. His firm also provides technology and finance consultancy services to its clients, including other law firms throughout the US.  With a background spanning multiple countries and businesses in finance and IT, Paykin brings a unique perspective to his legal practice.  His firm is modeled as a high-tech, client-centered practice, focusing on efficient service delivery in litigation and complex transactions related to business, commerce, finance, and real estate. He also operates a real estate brokerage and a real estate holding company.  Mr. Paykin regularly teaches continuing legal education courses and has been published in prestigious legal journals. His writings cover topics such as mutual insurer demutualization, the business judgment rule, law practice management, and the use of artificial intelligence in modern law practice.
Mr. Paykin sits on multiple professional committees and the boards of three 501c3 non-profits, as well as a condominium board.
Connect with Alexander Paykin on social media:
Twitter/X: @Paykinlaw

 

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