Artificial intelligence (AI) is transforming the legal industry, offering powerful tools that can streamline research, document review, and client communication. However, AI also presents ethical, security, and legal risks—especially when used by lawyers and staff who may not yet fully understand its limitations. To balance innovation with responsibility, law firms must establish clear guardrails for AI usage.
1. Establish Clear Policies
AI policies are a foundational first step for any law firm. Implementing AI tools without policies that govern use can open a firm up to risk and even legal ethics violations. At a minimum, all AI use policies should include:
- Acceptable use cases
- Prohibited use cases
- Specify when human oversight is required
- Data security and confidentiality provisions
- Data retention requirements
- Data deletion requirements
In addition, AI policies should include ongoing review, allowing the firm to adjust guidelines as AI technology and legal industry standards evolve.
2. Require Human Oversight and Verification
AI is powerful, but it’s not infallible. It can hallucinate (generate incorrect or misleading information), misinterpret legal precedent, and even occasionally miss key details. Lawyers should always be double checking work completed by AI.
In addition, most states require that partners, managers, and supervisory lawyers make reasonable efforts to supervise staff and ensure they are following the rules of professional conduct. Allowing associates to utilize AI tools with no oversight may run afoul of this ethical obligation.
3. Implement Security and Confidentiality Measures
Data breaches and security concerns are on the rise for law firms, with a recent survey showing that 29% of firms have experienced a security breach. Many AI tools process and store data externally, raising concerns about client confidentiality and data security. Law firms should ensure any AI tools they use have robust security measures in place. It’s also a good idea to perform regular security hygiene checks that can uncover any vulnerabilities and patch them before a breach occurs.
Attorneys should also take extra care when dealing with confidential client information. Feeding client information into an AI tool may seem harmless, but some tools allow third party access and may raise concerns about confidentiality.
4. Make AI Training a Routine Practice
Training is key before implementing any new technology, and this is particularly true with AI. All staff should be trained before incorporating AI into their daily work routines. Regular training ensures that the firm is not only getting maximum efficiency benefits but also ensures that staff knows how to use the technology in a responsible way.
AI technology is advancing rapidly, so training is not a one-time event. At a minimum, firms should require yearly training to ensure all staff is up to date.
Conclusion
While AI has the potential to position lawyers to be more competitive and efficient, it is not without risk. As the ABA and state bars continue to publish guidance on the use of AI, lawyers should stay on top of recommendations, ensure their teams are trained appropriately, and update internal policies and procedures as needed.