What would happen if artificial intelligence (AI) could systematically uncover loopholes in the law?
When it comes to AI and the law, we mostly think of “drafting contracts faster” and “making case law retrieval more convenient.”
This month, some researchers introduced a compelling new concept in their paper “Legal Zero-Days: A Novel Risk Vector for Advanced AI Systems” — the term “Legal Zero-Days.”
They attempt to remind us that AI may not merely help save time for lawyers, but could become a “hunter” of legal loopholes.
What is Legal Zero-Days？
The first thing to clarify is an old concept in the IT world: “zero-day vulnerability.” It refers to undiscovered security flaws in software. The terrifying aspect of such vulnerabilities is that once identified, they can be exploited immediately, leaving manufacturers and users completely at a disadvantage. In short, if these vulnerabilities are discovered by hackers in advance, they can be taken advantage of before developers can respond.
The so-called “legal zero-day vulnerability” denotes hidden defects or contradictions within the existing legal framework that remain unnoticed. Once exploited, they could trigger rapid and severe chaos in reality.
While individual such vulnerabilities may not immediately cause catastrophic consequences, collectively they reveal an alarming prospect: highly advanced artificial intelligence (AI) systems could proactively identify and systematically exploit these weaknesses to circumvent regulatory constraints and even undermine the foundations of legal and institutional frameworks. If deployed maliciously, such capabilities could be harnessed at critical junctures to orchestrate widespread disruption.
The term “legal zero-day vulnerability” may sound abstract, but it has repeatedly played out in reality. We just didn’t have a unified term to describe it in the past.
A classic example is Australia’s 2017 “dual citizenship crisis.” Section 44(i) of the Australian Constitution explicitly prohibits sitting members of parliament from holding dual citizenship. However, the interaction between this clause and international citizenship systems created a gray area that had long been overlooked. Once this loophole was exposed, it directly impacted the positions of the Deputy Prime Minister and several other members of parliament, causing significant political turmoil.
It meets the key characteristics of a zero-day vulnerability: a long-standing, unnoticed legal provision that, when triggered under specific conditions, ultimately delivers a massive shock to the political system.
Thus, a deeper question emerges: If such loopholes could only be discovered by chance through human effort in the past, what happens when artificial intelligence steps in?
A study in March 2025 built a prototype system with a straightforward name—“Can AI expose tax loopholes?” In the experiment, AI proved capable of systematically analyzing legal texts to effectively identify potential loopholes leading to tax revenue leakage. Their future goal is to develop a widely deployable version, encouraging public sector adoption of such tools to enhance social welfare.
This signifies that AI could not only assist lawyers with paperwork but also potentially become a kind of “loophole hunter”—systematically scanning legal frameworks to pinpoint vulnerabilities.
Industry Concern and Conception
Legal zero-day vulnerabilities are essentially logical flaws within legal structures that have always existed but remained undiscovered. Human experts, constrained by time and cognitive limitations, can occasionally identify such issues through professional experience, yet vast numbers of vulnerabilities still lurk within the text. As artificial intelligence capabilities advance, these systems can efficiently parse vast volumes of legal texts, trace complex logical connections across legal systems, and identify potential vulnerabilities that humans struggle to detect. While this capability enhances efficiency, it also breeds new risks—the stability and predictability of legal systems may face unprecedented challenges.
At the same time, the industry must focus not only on identifying vulnerabilities themselves but also on their cross-border implications. Once identified in a particular jurisdiction, these vulnerabilities can rapidly spread to other countries or regions, triggering a chain reaction of policy, compliance, and operational consequences.
Risk or Opportunity?
If, with technological advancements, AI truly achieves large-scale, automated discovery of “legal zero-day vulnerabilities” in the near future, we will inevitably confront the following questions:
- Will corporations exploit AI-discovered loopholes for legal arbitrage, exacerbating inequality?
- Will governments become trapped in an endless legislative “patch cycle,” perpetually playing catch-up?
- Will lawyers’ roles shift from traditional legal interpretation and litigation representation toward vulnerability alerts and institutional reinforcement?
The answer remains unknown. But what is certain is that AI’s rapid advancement is reshaping our understanding of law: it is not an impenetrable fortress, but an evolving architecture—one that constantly requires patching, inherently contains gaps, and remains in a state of flux. Insight into and comprehension of these gaps may well be one of the most significant trends emerging at the intersection of law and technology.
Written by Xueying Yang; Content planning: Gang Sun; Xueying Yang; Proofreading: Gang Sun
This article is provided by Sunfield Chambers Solicitors & Associates. The content of this article is based on publicly available information and the author’s understanding, and does not constitute any form of professional legal advice or basis for business decisions. Readers should refer to this article in the context of their own actual situation and consult relevant professionals for specific guidance. The author and the publishing platform do not assume legal responsibility for any consequences arising from the use of the information in this article.
Consultation with Specialized Lawyers
Abraham Sun
Principal Solicitor
As the Principal Solicitor, Abraham has been working with numerous clients including listed companies, state-owned enterprises, ultra-high-net-worth clients, and investment banks. Customers in various industries including Australian and Chinese companies and individual investors, had achieved considerable economic benefits with his professional legal advice.
Dickson Luo
Solicitor
Dickson mainly conducts dispute resolutions and commercial litigation in areas across insolvency, corporations, employment, real property and consumer law. He is proficient in English and Chinese Mandarin, and have extensive experience acting for clients who have limited or no English skills in complex disputes and litigation matters.
Linda Thai
Solicitor
Linda assisted our legal team with a range of litigation matters in Australian intermediate and superior courts. She has established solid foundations in litigation from assisting in matters from the initial investigation stage to briefing and liaising with barristers and also assisting our solicitors at court appearances.
Bhanu Seemar
Solicitor
Bhanu is a commercial litigation lawyer who has extensive experience working closely with counsel on a range of commercial law matters including contract disputes, insolvency disputes, consumer and franchise disputes, shareholder claims, financial services and regulatory enforcement matters, corporations law, and class action litigation.
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