Legal · Industry Guide
AI Risk for Legal Services
Privilege does not survive the prompt. Hallucination is now a sanctionable event. The bar associations are watching.
Regulatory drivers
- State and provincial bar association AI guidance
- Court rules on AI-generated filings
- Privilege and confidentiality obligations
- Conflict-of-interest considerations for AI-shared client data
Top AI risks for legal
- Privileged client information in prompts to commercial LLMs
- Hallucinated case citations in filings (multiple sanctions cases on record)
- Conflict-checking implications when AI surfaces information across client matters
- AI-generated work product subject to professional-responsibility review
Common engagement use cases
- Firm-wide AI Posture Check before AI rollout
- Privilege-preservation review for AI tool selection
- Adversarial testing for hallucination on legal-research tools
- Bar-association-aligned policy development
Engagement shape
Same three-tier structure.
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