AI Is Already Inside the Practice of Law
Artificial intelligence is no longer theoretical in legal practice. Lawyers are using AI for research, drafting, summarization, and issue spotting—sometimes through firm-approved tools, sometimes informally.
This shift is happening faster than most governance frameworks can keep up.
The question law firms now face is not whether AI will be used, but whether its use is defensible when challenged by a court, regulator, or insurer.
Courts Don't Sanction Software
When AI-generated errors make their way into filings, discovery, or client advice, courts do not sanction algorithms.
They sanction lawyers.
Professional responsibility rules have always focused on competence, supervision, confidentiality, and candor. AI does not change those duties. It amplifies the consequences of failing to meet them.
Submitting inaccurate citations, exposing privileged information, or misleading a tribunal because "the AI produced it" is not a defense.
The Hidden Risk: Informal AI Use
In many firms, the greatest exposure does not come from formal AI rollouts. It comes from informal, untracked use by well-intentioned professionals trying to work more efficiently.
Without governance, firms often lack:
- Clear policies on approved and prohibited AI use
- Verification standards for AI-assisted work
- Documentation showing reasonable reliance
- Visibility into how AI contributes to work product
That absence becomes a problem only when something goes wrong—at which point it is too late to retroactively govern.
Governance Is Not About Slowing Innovation
Effective AI governance is not about banning tools or stifling efficiency. It is about setting expectations that allow AI to be used responsibly.
Well-designed governance frameworks typically include:
- Privilege-safe workflows
- Human-in-the-loop verification requirements
- Escalation thresholds for high-risk outputs
- Discovery-aware documentation standards
- Alignment with insurer expectations
These controls enable innovation while preserving accountability.
Why Insurers Care About AI Governance
Professional liability insurers increasingly evaluate how firms manage AI risk. When claims arise, carriers look for evidence of reasonable controls and oversight.
Firms that cannot demonstrate governance face:
- Increased claim severity
- Coverage disputes
- Higher premiums or non-renewal
AI governance is quickly becoming part of standard risk management, not an optional add-on.
AI doesn't replace lawyers.
Unaccountable AI use replaces careers.
The Real Competitive Divide
The legal market is not dividing between firms that use AI and firms that do not.
It is dividing between firms that:
- Govern AI intentionally, and
- Those that allow it to operate without controls
The former reduce risk and increase client trust. The latter absorb hidden liability.
Final Thought
AI will continue to accelerate legal work. Responsibility will continue to rest with human professionals.
Firms that recognize this early and implement defensible governance will be better positioned with courts, clients, and insurers alike.
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