Law firms are receiving explicit notices from in-house counsel saying, “Do not use our company data in ChatGPT or other publicly available AI tools.” As concerns about the inadvertent disclosure of private, confidential, and trade secret information flood the AI landscape, the same corporate lawyers sending those notices to law firms also receive similar warnings from their business clients.
Clearly, lawyer/client relationships stand to benefit from transparent communications regarding when, why, and how lawyers plan to use AI to deliver client services. Below, we explore the importance of informed consent and how to balance the benefits and drawbacks when discussing AI with clients.
The Duty To Communicate With Clients About AI
While only 45% of law firms expect to offer their clients a choice regarding the use of generative AI, 65% of in-house counsel expect to receive a choice, according to the LexisNexis International Legal Generative AI report.
Informed consent helps you set proper expectations around the use of AI technology. In my discussions with the MIT Task Force on the Responsible Use of Generative AI for Law, members agree that legal clients must consent to the potential use of AI. However, some argue that general consent suffices, while others advocate for detailed permission for each use case.
While that debate continues, you can help clients make informed decisions regarding the use of AI by explaining the AI tools used, their purposes, and how they integrate into each workflow. Here are some practical tips for that conversation:
Discuss The Benefits Of Using AI
Share the numerous advantages that using AI tools brings to legal services. Describe situations in which AI has or can help you:
- Enhance Legal Research: Quickly analyze vast amounts of legal documents, case law, and statutes. Access relevant information more efficiently, saving time and improving the quality of your legal arguments.
- Document Review and Due Diligence: Automatically analyze and categorize large volumes of legal documents. Pinpoint essential information, potential risks, and inconsistencies more accurately to reduce the time and effort needed for manual review.
- Predictive Analytics: Analyze historical data and patterns for valuable insights in strategic decision-making. Assess the likelihood of success in a case or predict potential outcomes.
- Contract Analysis and Management: Review and extract important contract clauses, terms, and obligations. Identify potential risks, ensure compliance, and streamline contract management processes.
- Improved Efficiency and Cost Savings: Automating tasks can significantly improve efficiency, saving time, reducing costs, and allowing lawyers to focus on higher-value work.
Explore The Reasons Not To Use AI
Clients may be skeptical about AI, fearing it lacks empathy or may compromise their data. Explain the legal implications of using AI in a client’s case or matter, including any potential legal risks or limitations associated with relying on AI-generated information or analysis. Concerns can include:
- Ethics: AI systems are typically trained on large datasets that can inadvertently contain biases. If not addressed, biases can lead to discriminatory outcomes and perpetuate social inequalities and injustices.
- Lack of Transparency: Some AI systems operate as black boxes, obscuring how they arrive at their conclusions and raising questions about accountability, fairness, and the potential for biased outcomes.
- Lack of Contextual Understanding: AI algorithms can struggle to understand the subtleties of legal language, human emotions, and cultural contexts, impacting their accuracy and effectiveness in legal situations.
- Costs: Implementing AI technology can involve additional costs. Ensure clients understand the potential costs to base decisions on their budget and priorities.
Clients can have unrealistic expectations about what AI can achieve, and an open conversation can help you set realistic expectations and avoid potential misunderstandings. Highlighting the benefits and drawbacks of utilizing AI in legal processes fosters transparency and enables clients to make informed decisions about incorporating AI into their legal strategies.
Many AI evolutions lie ahead, and protecting private and confidential information will remain a top priority. Start now, practicing open and full communication regarding AI to build trust with clients, protect confidentiality, and shape the future of legal practice for the better.
Olga V. Mack is the VP at LexisNexis and CEO of Parley Pro, a next-generation contract management company that has pioneered online negotiation technology. Olga embraces legal innovation and had dedicated her career to improving and shaping the future of law. She is convinced that the legal profession will emerge even stronger, more resilient, and more inclusive than before by embracing technology. Olga is also an award-winning general counsel, operations professional, startup advisor, public speaker, adjunct professor, and entrepreneur. She founded the Women Serve on Boards movement that advocates for women to participate on corporate boards of Fortune 500 companies. She authored Get on Board: Earning Your Ticket to a Corporate Board Seat, Fundamentals of Smart Contract Security, and Blockchain Value: Transforming Business Models, Society, and Communities. She is working on Visual IQ for Lawyers, her next book (ABA 2023). You can follow Olga on Twitter @olgavmack.
