Extract from Ryan Harroff’s article “AI Legal Malpractice? Law Firms and Insurers Are Playing Catch-Up”
As Big Law firms adopt more AI technology tools, liability and data security risks associated with AI are growing, according to industry observers, who say these concerns are beginning to enter discussions with legal malpractice insurers.
As one insurance expert put it, the level of risk that comes with the technology “will get worse before it gets better.”
The technology is far from perfect now. Hallucinations—when AI tools make things up and present them as facts—and data security risks from using AI platforms are key concerns for those who insure Big Law firms. Already, multiple attorneys have been sanctioned by courts for submitting briefs with inaccurate quotes or fictitious case citations hallucinated by AI tools.
However, both law firms and their insurers have been slow to adapt to the new AI landscape when it comes to liability coverage.
