“Extract from Michael Gennaro’s article “Governance Woes Likely to Mushroom as Legal Teams Accelerate AI Adoption“
Artificial intelligence will reshape legal risk management in 2026, driving new litigation, compliance pressures and data governance challenges as organizations move from experimentation to everyday deployment, according to a new global report from FTI Technology.
In its Forecasting Digital Risk in 2026 report, FTI predicts that AI adoption will accelerate across corporate legal departments and law firms, fundamentally changing document review, investigations and compliance workflows, while also introducing new liability risks tied to subsequent overreliance on automated tools.
“First pass document review will never be the same. Generative AI-enabled classification, in cooperation with predictive coding, will permanently change the landscape for document review, yielding a new standard for reliability (higher precision and recall),” wrote FTI managing director Tom Barce. “At the same time, overreliance on AI is going to cause a discovery problem. It is only a matter of time before someone blames a large language model for a privilege waiver or inadvertent production of highly confidential information.”
