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Artificial Intelligence (AI) is undeniably transforming the business landscape. From streamlining administrative tasks to generating marketing copy, AI tools like ChatGPT are here to stay, and their capabilities will only expand in the future. However, for veterinary practice owners preparing to sell, the unverified use of AI in advertising and Information Memorandums (IMs) presents a massive, hidden risk.
When it comes to selling a high value clinical asset, relying blindly on AI to generate your listing materials can quickly cross the line from efficient marketing into unlawful misrepresentation.
AI language models are designed to sound convincing, even when they are completely wrong. In the tech world, this is known as a “hallucination.”
An AI drafting a property or business description might seamlessly invent non existent features to make the copy flow better. It might falsely state that your clinic has “three fully equipped surgical theatres” when you only have two, or it might creatively erase a structural defect from a listing photograph.
Globally, the real estate and business broking industries are already seeing the fallout. Professional indemnity insurance claims for misrepresentation are surging. In fact, jurisdictions like California in the US have recently passed strict laws making the undisclosed use of AI in listing photos a direct legal compliance issue, and we can expect Australian regulations to follow a similarly strict path.
So who takes the fall if there is an error in the information you provide? If an AI-generated error makes its way into your final advertising material, who is legally responsible when the buyer discovers the truth? Is it the broker, the vendor (you), or the software?
The harsh reality is that both the agent and the client are in the firing line. Courts and regulatory bodies do not accept “the AI wrote it” as a valid legal defence.
A broker can be sued for professional negligence and face severe disciplinary action, including the loss of their license, for failing to verify the accuracy of the information they publish. Standard disclaimers at the bottom of a brochure (e.g., “information is passed on without guarantee”) have repeatedly been struck down by courts as insufficient protection against misleading conduct.
As the business owner, you are engaging in a commercial transaction. Under the Australian Consumer Law (ACL), if marketing materials contain false or misleading representations, the purchaser can take legal action against you directly.
The consequences of this are severe. A proven misrepresentation can lead to the buyer suing for damages, or worse, the court ordering a rescission of the contract, meaning the entire sale is unwound, the money is returned, and your exit strategy is completely derailed.
We are not suggesting that AI should be banished from the sales process. It is a brilliant tool for formatting data, overcoming writer’s block, and structuring initial drafts.
However, AI must be treated like an over enthusiastic junior assistant. It can start the work, but it cannot finish it.
As a practice owner, it is highly recommended that you cast a critical eye over every single piece of advertising, financial summary, and listing photograph your broker intends to publish. Check the nuances: Does the description accurately reflect your equipment? Are the staff numbers correct? Do the photos represent the true physical state of the clinic?
At RWC Business Sales, we leverage modern technology to maximise your market reach, but we never compromise on human due diligence. We work in lockstep with our vendors to ensure every claim is accurate, protecting you from liability and ensuring your sale proceeds smoothly from listing to settlement.
Planning your exit strategy? Partner with a broker who values accuracy as much as results. Contact RWC Business Sales today for a confidential, expertly vetted appraisal of your veterinary practice.
Peter is an experienced business executive in the mergers and acquisitions space who has been the primary founder of two successful national dental aggregation entities. With extensive experience in both dental and health related organisations. Peter knows how to create and utilise innovative tools and mechanisms to promote and foster growth and generate optimal outcomes.
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455+ online appointments, fewer phone calls and more time for clients The challenge Cairns Veterinary Clinic found themselves under constant front desk pressure, with high call volumes and no capacity to scale further by hiring. At the same time, more pet owners...
