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MortgagePoint ยป Your Trusted Source for Mortgage Banking and Servicing News 52 November 2025 F E A T U R E S T O R Y BANKRUPTCY, BOTS & BIAS: AI'S EMERGING ROLE IN CHAPTER 13 MANAGEMENT As artificial intelligence becomes more common in bankruptcy law, its promise of efficiency comes with new ethical and procedural risks that courts and practitioners can't afford to ignore. B y A L E X A N D E R T. D O W D I N G , E S Q . A rtificial Intelligence (AI) has experienced a sharp uptick in use in today's practice of law, and modern-day bankruptcy practice is certainly not immune to the impacts of AI. It seems to be common knowledge these days that AI tools can do research in minutes that once may have taken hours to complete. Though practitioners are also learning that AI has the potential to make up (or "hallucinate") cases that don't exist, and AI can even provide quotes from holdings that are not even tangentially related to the case it cited. Such general pros and cons, however, are perhaps an issue for another article. Instead, in this article, I will focus on how AI can both be of use and cause for concern in bankruptcy proceedings. Notably, when used in bankruptcy practice, AI has the potential to provide tools that both increase efficiency and aid with tasks, such as the automation of client intake, the analysis of data, and the generation of schedules of assets and liabilities. AI could even be used to predict likely outcomes of cases. How- ever, with the implementation of AI into the practice of bankruptcy comes the risk of introducing certain socioeconom- ic, geographic, and behavioral biases, es- pecially in circumstances where the AI work product is left unchecked, without any legitimate oversight or independent analysis. Prior to joining the team at Kass Shuler, P.A., I spent the majority of the past decade honing my craft through my representation of debtors in consumer bankruptcies. In my prior practice, I fully stood on the idea that I personally needed to review every line of every document a client provided. While a few hundred pages of bank statements would undeniably take time to review, I knew that a careful review meant that I was able to ensure there were no surprises in the case and that my client didn't "forget" he paid back his mom $5,000 a few months ago. In my current practice as a creditor's rights attorney, the shoe is now on the other foot, as I represent various business entities to protect their interests within bankruptcy proceedings. However, my principles have not changed, and I continue to stand by the importance of having a full and detailed knowledge and understanding of the records my clients are relying on in support of their positions. But while my principles haven't changed, technology undeniably has, and AI now provides the ability to review hundreds, if not thousands, of pages of documents in mere minutes. Indeed, AI can handle tasks that once would have taken hours and cost clients both time and money. For exam- ple, AI can be tasked with looking for and identifying suspicious transactions, creating summaries of the information being provided, and even going as far as drawing conclusions on personal or A L E X A N D E R T . D O W D I N G , E S Q . , is a creditors' rights attor- ney at Kass Shuler, P.A., where his practice is focused on bankruptcy proceedings involving his clients. He ob- tained his Bachelor of Science in criminology from Florida State University in 2010, as well as his Juris Doctorate from St. Thomas University College of Law in 2013. Dowding has practiced bankruptcy law since his time in law school, where he participated in the Dade Legal Aid internship, assisting in the representation of low-income individuals. After graduation, Dowding promptly entered the field of consumer bankruptcy, representing debtors in both Chapter 7 and Chapter 13 bankruptcy filings. Dowding now represents creditors in Chapter 7, 11, and 13 bankruptcies. He is a member of the Tampa Bay Bankruptcy Bar Association, Florida Bar, and licensed to practice in the entire state and all Federal District Courts of Florida. In his free time, he enjoys time with his family, scuba diving, and watching his favorite football teams.