AI and the Law in Bermuda
Bermuda's courts, legal profession and employers are meeting AI without AI-specific rules. The common law, existing statutes and professional duties are doing the work, and a court practice direction is on the way. This Laurenceo guide sets out where things stand. It is general information, not legal advice.
AI in Bermuda's Courts
No AI rules yet. There are no court rules or formal guidance specific to AI use in Bermuda litigation. Appleby reports that the judiciary's 2025 annual report announced a committee, led by Mrs Justice Subair Williams, to work on a practice direction. Belize, the Channel Islands, the Caribbean Court of Justice and Australian courts have already issued AI guidance, so Bermuda's direction is likely to address disclosure of AI use, verification of citations and confidentiality.
Fourworld v Enstar (2025). In Fourworld Global Opportunities Fund Ltd and others v Enstar Group Limited, decided in August 2025, the Supreme Court of Bermuda accepted evidence that generative AI could meet disclosure obligations in a compressed timeframe at a fraction of the cost of manual review. Commentators including Burges Salmon describe it as one of the first common law judicial endorsements of generative AI in e-discovery, while noting the judgment gives relatively little reasoning and is persuasive rather than binding outside Bermuda.
Risk for counsel. Appleby warns that counsel relying on unchecked AI output could face personal costs orders and disciplinary proceedings. Fabricated citations generated by AI have led to sanctions in other common law courts.
AI in Legal Practice
Bermuda law firms use AI for document review, research and drafting. Professional duties of competence, confidentiality and candour to the court apply whatever the tool. Practical safeguards: approved tools only, no client confidential information in consumer AI services, every citation checked against the source, and supervision of AI output by a qualified lawyer.
AI at Work: Hiring, Monitoring and Dismissal
Bermuda has no employment-specific AI regime comparable to the EU AI Act (Appleby). Existing law applies to AI outcomes:
| Use of AI | Law engaged | Risk |
|---|---|---|
| Screening CVs or ranking candidates | Human Rights Act 1981, PIPA | Indirect discrimination; lawful basis and transparency for applicant data |
| Monitoring staff activity | PIPA, Employment Act 2000 | Proportionality and notice |
| Performance scoring | Employment Act 2000, PIPA | Fairness of decisions; accuracy of data |
| Dismissal or discipline informed by AI | Employment Act 2000 | Unfair dismissal if the process is not fair and explainable |
Liability and Contracts
When AI causes loss, liability falls on the people and companies behind it: AI systems are not legal persons. Contracts with AI vendors should address data use, confidentiality, model changes, accuracy, liability caps and audit rights. The Premier's stated intention to explore legal clarity for AI agents in financial services may eventually address who is responsible when an agent acts.
Copyright and AI Output
Bermuda has not legislated on copyright in AI-generated works or on training AI on copyrighted material. Businesses should assume ownership of purely AI-generated content is uncertain, and should check vendor terms on ownership and indemnities.
Laurenceo's View
The Fourworld decision shows Bermuda's courts are willing to accept AI where it is shown to be reliable and proportionate. The same standard should guide everyone else: use AI where the evidence supports it, and keep the records that prove it. Laurenceo tracks legal and regulatory AI developments daily in Laurenceo Intelligence.
Questions and Answers
Can lawyers use AI in Bermuda courts?
There are no AI-specific court rules yet, so lawyers may use AI subject to their professional duties. A judicial committee is working on a practice direction, and counsel who rely on unchecked AI output risk costs orders and discipline.
What is Fourworld v Enstar?
A 2025 Supreme Court of Bermuda decision in which the court accepted that generative AI could be used to meet e-disclosure obligations quickly and at lower cost, described as one of the first common law endorsements of generative AI in e-discovery.
Can Bermuda employers use AI to hire staff?
Yes, but the Human Rights Act, PIPA and the Employment Act still apply. Employers must avoid discriminatory outcomes, have a lawful basis for using applicant data and be able to explain decisions.
Who is liable if AI makes a mistake in Bermuda?
The organisation using the AI, and potentially its vendor under contract. AI systems are not legal persons, so responsibility rests with people and companies.
Sources
About the Author
Jorai Laurenceo is the Founder and Executive Director of Laurenceo, Bermuda's AI governance think tank, based in Hamilton, Bermuda. He leads Laurenceo's research on AI governance and the Bermuda Monetary Authority's AI guidance, its public consultation response and Laurenceo Intelligence. He studies Technology Management at Ontario Tech University.