Ethical Frontier: AI in Legal Practice | Live CLE Ethics Webinar

Agenda:

David V. Sanker, Ph.D., Founder, Sanker IP
&
Kellen M. Shearin, Associate, Buchanan Ingersoll & Rooney PC & Nadel LLP

Artificial Intelligence is no longer a futuristic concept; it’s a practical tool being integrated into law firms today. It offers massive efficiency gains in legal research, document review, and drafting. 

Our challenge is not if we should use AI, but how we integrate it while upholding our core ethical duties to our clients and the profession. This isn’t about replacing judgment; it’s about augmenting it responsibly.

The failure to use AI competently is an ethical risk. The improper use of AI is a clear ethical violation. The failure to use AI entirely may put you behind the competition.

I. Key Ethical Risks & The Regulatory Horizon

 Risk 1: Client Confidentiality (Rule 1.6)

·      Feeding client data into public or “open” AI models (like the free version of ChatGPT) could be a direct breach of confidentiality especially if the data becomes part of the model’s training set.

·      Where does your data go? Using third-party AI tools without a secure, “closed-loop” environment is malpractice waiting to happen.

Risk 2: Accuracy & “Hallucinations” (Rule 1.1 & 1.3)

·   Generative AI is designed to be plausible, not necessarily truthful. It “hallucinates”—inventing facts, case law, and citations with complete confidence.

·   The Mata v. Avianca case is the ultimate cautionary tale. Lawyers submitted briefs with entirely fabricated case law. This is a clear violation of the Duty of Competence (Rule 1.1) and Duty of Diligence (Rule 1.3).

·   AI Chatbot in NYC encouraged people to break the law including stating that it was ok to serve food that was touched by rats and it was ok to discharge an employee for refusing to cut his dreadlocks.

Risk 3: In-Built Bias (Rule 1.7 & 2.1)

·   AI models are trained on vast datasets from the internet, which contain historical and societal biases.

·   Relying on AI for risk assessment, sentencing predictions, or even resume screening can perpetuate and amplify bias without safeguards (including human review and bias audits). 

·   NY Local Law 144 and other examples require bias audits (in the employment context).

Regulatory Landscape: The “Patchwork” of State Regulation

  There is no single AI law. Regulation is coming from multiple directions:

·        Local Law 144 (if not discussed above)

·        Colorado’s AI Law

·        Illinois Amendment to Human Rights Act and Artificial Intelligence Video Interview Act

·        CA Transparency in Frontier AI Act

·        California CCPA Regulations

·        State Bar Opinions: Many states (e.g., Florida, California, New York) have issued ethics opinions. The consensus: AI is permissible, but the lawyer remains 100% responsible for the work product.

·        Court-Specific Rules: Judges are now issuing standing orders requiring lawyers to certify whether (and how) they used AI in a filing.

II. The Evolving Duty of Technological Competence (Rule 1.1)

·        The Standard: The ABA Model Rules (Comment 8 to Rule 1.1) state a lawyer must “keep abreast of changes in the law and its practice, including the benefits and risks associated with relevant technology.”

·        What “Competence” Means for AI:

o   It’s not about knowing how to code. It’s about knowing how the tools work at a functional level.

o   Knowing the Limitations: Competence means knowing AI hallucinates, has data cut-offs (doesn’t know recent law), and cannot understand nuance or strategy.

o   Knowing “When” vs. “How”: Knowing when to use AI (e.g., summarizing a deposition) is as important as knowing how to use it (e.g., writing good prompts).

o   The Core Principle: You cannot delegate your professional judgment. Using AI doesn’t change your obligations; it adds a new layer of verification.

III. A Practical Framework: Applying Rules of Professional Responsibility

o   Rule 1.1 (Competence) & 1.3 (Diligence): Verification is Non-Negotiable

o   The lawyer is the “human-in-the-loop.” You must critically review, edit, and independently verify every single output from an AI.

o   Motto: “Trust, but verify” is not enough. The motto must be: “Assume it’s wrong until you prove it’s right.”

o   Rule 1.4 (Communication): Transparency with the Client

o   Do you need client consent? It depends.

o   For general use (research, drafting) that doesn’t share confidential info? Probably not.

o   To share specific, confidential data with a third-party AI vendor? Absolutely.

o   Key Question: Does the use of AI materially change the client’s representation or risk? If yes, you must inform them.

o   Rule 1.5 (Fees): Billing for AI

o   Application: You cannot bill an hour of lawyer time for work an AI did in 30 seconds.

o   Billing must shift from effort (the billable hour) to value. You can bill for the time you spend drafting prompts, reviewing output, and editing. You cannot mislead a client about the process to justify a fee.

o   Rule 5.1 & 5.3 (Supervision): The Firm-Wide Responsibility

o   Partners and senior lawyers are ethically responsible for the AI use of their junior associates and staff.

o   You must have a firm-wide AI policy. You must provide training. “I didn’t know the associate was using ChatGPT” is not a defense.

IV. The Ethical Path Forward

o   AI as a Tool, Not a Crutch: AI doesn’t practice law; lawyers do. It’s a powerful paralegal, but you are still lead counsel.

o   Key Takeaways:

o   Create a Policy: Define what’s permissible, what’s prohibited (e.g., public models for client work), and what tools are approved.

o   Train Your People: Competence isn’t optional. Train everyone on the policy, the risks, and the proper methods for verification.

o   Vet Your Vendors: Your ethical duties extend to your technology partners. Ensure they are secure, confidential, and reliable.

o   Stay up to date on the rules and laws regarding AI and its use.

Why Attend This Webinar?

By attending this CLE ethics webinar, you will:

• Earn CLE credit online from the comfort of your office or home.
• Access both the live webinar and the on-demand recording at your convenience.
• Gain practical insights into navigating emerging ethical challenges in the use of AI for legal practice.
• Fulfill continuing legal education requirements in a practical, engaging format tailored to legal professionals.

Who Should Attend: