The research, released by the Amsterdam-based nonprofit Aithos Research Foundation, tested 12 frontier models from OpenAI, Anthropic, Google, and Mistral across simulated workplace scenarios that covered legal obligations. The best-performing model violated applicable law in nearly half of all test runs; the worst failed in 93 percent of scenarios. While the test was run against EU laws, these publicly accessible AI models are not limited to that region. As such, Australian organizations, especially those with high rates of AI agent deployment, should treat these findings as a vendor-readiness signal. What the researchers tested Aithos used its LARA (Legal Assessment for Real-world Agents) framework, a publicly available testing system that evaluates AI models in simulated workplace environments rather than through static benchmarks. In LARA tests, models can access tools that mirror a real enterprise deployment: email, messaging platforms, calendars, customer databases, and social media channels. Test scenarios included data protection handling, emotion inference in the workplace, psychological profiling, social scoring, and exploitation of vulnerable individuals. The framework generated more than 3,000 assessment runs, which were validated …