Navigating the Legal Risk Continuum with Generative AI

Olga Mack representing generative AI legal risk in legal technology

Generative AI legal risk is becoming a central concern for legal professionals. As GenAI tools reshape the way lawyers work, understanding and managing these risks is essential for ethical and effective practice. However, not all GenAI legal risks are equal.

In this article, Olga V. Mack presents a comprehensive framework for assessing and managing the potential risks of GenAI within the legal profession. This framework will help legal teams understand risk levels and adopt GenAI tools responsibly. Moreover, understanding these risks is vital to maintaining ethical standards and avoiding negative legal consequences.

Key Points and Learning Outcomes:

  1. Understanding the Generative AI Legal Risk Continuum: The article introduces a helpful framework for evaluating the risks associated with GenAI, which range from low to high, depending on the legal activity. This approach ensures that professionals can act with awareness at each risk level.
  2. Low-to-Moderate Risk: GenAI is effective for tasks like corporate communications and educational content. While these activities are generally low-to-moderate risk, it’s crucial to address data privacy concerns. Additionally, verifying AI-generated outputs is essential for maintaining accuracy and fairness.
  3. Moderate Risk: AI-assisted preliminary legal research carries moderate risk, primarily due to potential data privacy issues and biases in training data. In this case, human oversight is key to ensuring the reliability of AI-generated research and ensuring that it aligns with legal standards.
  4. Moderate-to-High Risk: Drafting initial legal documents using GenAI raises significant concerns regarding data privacy and confidentiality. Legal professionals must thoroughly review AI-generated documents to ensure they meet legal standards and avoid errors. For this reason, human intervention is necessary for maintaining quality and accuracy.
  5. High Risk: Utilizing AI for legal analysis and strategy involves high risk. Lawyers must ensure transparency and validate the AI’s reasoning. Without validation, biases could skew outcomes, leading to unreliable legal advice. Therefore, it’s essential to ensure that legal advice is sound and well-supported.
  6. Very High Risk: Providing legal advice with the aid of AI requires meticulous review to ensure accuracy and reliability, as lawyers are ultimately accountable for the advice given. Consequently, reviewing AI-generated advice is critical to avoid professional and legal consequences.
  7. Highest Risk: Preparing court filings with AI is the highest-risk activity. It is imperative to verify that AI-generated filings adhere to court rules. Without proper verification, filings could misrepresent clients or lead to detrimental legal consequences. Thus, it’s vital to ensure the integrity of the document before submission.

Read the full article on ACC Docket here to explore how to responsibly integrate GenAI within legal practices and effectively manage associated risks.

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At OlgaMack.com, we support legal professionals navigating the evolving landscape of generative AI with clarity and confidence. As GenAI tools rapidly integrate into legal workflows, managing these risks becomes even more critical. Lawyers are uniquely positioned to uphold ethical standards, safeguard client interests, and shape responsible AI adoption.

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