Artificial Intelligence (AI) is no longer a futuristic concept for the legal industry—it’s here, it’s evolving rapidly, and it’s already transforming how law firms operate. From drafting documents and conducting legal research to automating administrative tasks, AI is enabling new levels of efficiency and insight. That’s why now is the time for law firms to adopt a clear and thoughtful AI use policy.

Why a Law Firm Needs an AI Use Policy

1. Client Confidentiality Is Non-Negotiable

AI tools can pose a risk of exposing sensitive client information. Without strict internal guidelines, attorneys or staff might unknowingly input confidential data into tools that store or use it for model training. An AI policy helps safeguard privileged communications and ensure compliance with ethical obligations.

2. Professional Responsibility and Ethics

The American Bar Association and many state bars have issued guidance highlighting the ethical risks of using AI without proper oversight. Rule 1.1 of the ABA Model Rules of Professional Conduct requires lawyers to maintain technological competence. That includes knowing how AI tools work—and understanding their limitations. A policy can ensure firm-wide adherence to these standards. North Carolina has gone further and adopted 2024 Formal Ethics Opinion 1, “Use of AI in a Law Practice” which sets out in detail a lawyer’s ethical responsibilities concerning AI.

3. Risk Management and Liability

Misuse or over-reliance on AI can result in errors in legal analysis, missed deadlines, or even malpractice claims. With an AI use policy in place, firms create a structured approach to mitigate risk, establish accountability, and prevent misuse.

4. Operational Consistency

As more lawyers experiment with tools like ChatGPT, Harvey, or AI-powered document automation platforms, inconsistency can creep in. A firmwide policy helps standardize the adoption and application of these tools, ensuring alignment with firm goals and client expectations.

Best Practices for Creating an AI Use Policy

1. Define Acceptable Use

Specify which tools are approved for use and in what contexts. For example, generative AI may be acceptable for internal brainstorming or template drafting, but not for court filings or final client communications without thorough review.

2. Mandate Human Oversight

Require that all outputs generated by AI—whether contracts, emails, or pleadings—be reviewed by a qualified attorney before use. The policy should reinforce that AI is an assistant, not a replacement.

3. Protect Confidentiality and Data

Make it clear that confidential or personally identifiable information should never be entered into open AI platforms unless proper privacy safeguards are in place. Work with IT professionals to ensure secure tools and data handling which will almost always require paid subscription services.

4. Educate and Train

Provide regular training on how to use AI tools responsibly, keep staff informed of emerging risks, and promote technological competence as a firm value.

5. Include a Monitoring and Review Process

Technology moves fast. Your policy should be a living document, reviewed regularly and updated as new tools, regulations, and risks emerge.

Resources to Get Started

Legal tech leaders like Clio have created valuable toolkits and sample policies to help firms get started. Clio’s AI Resource Center includes customizable templates, best practice guides, and safety checklists tailored to law firms.

By leveraging these resources and implementing a thoughtful AI use policy, your firm can benefit from the advantages of AI—without sacrificing ethics, compliance, or client trust.