Law firms are navigating a new frontier as artificial intelligence (AI) integrates more and more into the legal workspace. In-house counsel is growing wary of these systems, explicitly requesting that law firms avoid using AI tools, like ChatGPT, with their company data. The fear is that these tools may inadvertently disclose sensitive, confidential, and even trade secret information, creating a stream of concerns in the AI landscape.
The very in-house counsel issuing warning letters to law firms about data use with AI are also receiving similar warnings from their business clients. Both sides of the relationship stand to bolster trust with clear, transparent communication about when, why, and how AI will be used in relation to legal services.
Yet the issue of consent is an ongoing debate. While a LexisNexis report suggests only 45% of law firms anticipate offering their clients a choice about the use of generative AI, 65% of in-house counsel expect to receive that choice. In discussions with the MIT Task Force on the Responsible Use of Generative AI for Law, most agree that clients must acknowledge AI use, but there isn’t a consensus about whether general consent is enough or if detailed permission is required for each use case.
There are tangible ways to help clients make informed decisions about AI use. For instance, explaining the AI tools in use, their purpose, and how they integrate into workflows can help clients understand the AI landscape.
Lawyers should discuss the benefits of using AI, which include enhanced legal research, automation in document review and due diligence, predictive analytics, contract analysis and management, and improved efficiency and cost-savings. Highlighting the possible reasons not to use AI also forms an essential part of the conversation. This list includes ethics concerns, lack of transparency, lack of contextual understanding, and costs associated with AI technology implementation.
Even with AI’s potential to enhance legal services for clients, unrealistic expectations can result in future misunderstanding. An open, honest dialogue about the strengths and weaknesses of AI use will clarify these uncertainties and improve client comprehension.
To state the obvious, confidentiality will continue to be a major concern as AI develops and expands within the legal sector. Fostering trust with clients through open and complete communication about AI is critical in shaping the future of legal practice for the better.
This article was created by Olga V. Mack, VP at LexisNexis and CEO of Parley Pro, a contract management company that touches on key topics like AI use in legal practice.