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McDonald’s Class Action: Justice Michael Lee Orders AI Use to Cut Legal Costs in $100 Million Underpayment Case

The Australian Financial Review

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Date Published
31 Aug 2026
Priority Score
2
Australian
Yes
Created
31 Aug 2026, 10:00 am

Authors (1)

Description

Justice Michael Lee says the $100 million class action between McDonald’s and a union may be a case of where artificial intelligence can lower the cost of litigation.

Summary

Federal Court Justice Michael Lee has issued novel orders requiring McDonald’s and the SDA union to explore utilizing artificial intelligence to manage the high costs of a $100 million underpayment class action. This development signals an important shift in the Australian judicial system toward the integration of AI in legal discovery and trial preparation to address inefficiencies in large-scale litigation. While the case focuses on operational legal efficiency rather than existential or catastrophic AI risks, it highlights the growing role of AI governance within the Australian judiciary and the potential for court-mandated technology adoption. The orders represent a notable precedent for how frontier technology might be regulated and leveraged in formal legal frameworks to resolve complex institutional disputes.

Body

Work & CareersWorkplaceAIPrint articleDavid Marin-GuzmanWorkplace correspondentAug 31, 2026 – 6.17pmAn outspoken Federal Court judge is using a $100 million class action against McDonald’s as a testing ground for artificial intelligence as he urges lawyers to get imaginative on how to cut down massive case costs.Justice Michael Lee issued novel orders late last week forcing the fast food giant and the Shop Distributive and Allied Employees Association to explore with technology experts how they could use AI to prepare for mediation and a 10-week trial over alleged underpayments listed for 2028.Loading...SaveLog in or Subscribe to save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? LoginLicense articleRead MoreAIWorkplace disputesIndustrial relationsClass actionFetching latest articles