The Law Society of New South Wales, the Legal Practice Board of Western Australia, and the Victorian Legal Services Board and Commissioner have issued a statement on the use of AI in Australian legal practice, setting clear expectations for lawyers integrating AI tools into their work. Fiona McLeay, CEO and Commissioner, emphasized that while AI has transformative potential, it cannot replace legal expertise, ethical judgment, or confidentiality obligations. Lawyers must understand AI’s capabilities and limitations, both for their own use and to advise clients who may be using AI or affected by AI-driven decisions. The statement builds on the 2024 Risk Outlook and previous AI guidance, reinforcing the need for human oversight in legal practice.
Legal professionals must ensure that AI use aligns with their ethical duties under the Legal Profession Uniform Law. They must maintain client confidentiality by avoiding inputting sensitive information into public AI tools and ensuring that commercial AI solutions provide adequate security guarantees. Lawyers must provide independent legal advice, as AI cannot reason or provide legal judgment, making human oversight essential. The duty to act competently and diligently remains, as AI-generated content can sometimes be misleading or inaccurate, requiring lawyers to personally verify all AI-assisted work before use. Lawyers must also ensure that billing practices remain fair and proportionate, preventing AI use from unnecessarily inflating client costs.
The statement encourages clear AI policies to mitigate data security risks, ensure proper supervision, and limit AI applications to low-risk tasks, such as structuring arguments or drafting routine documents. It warns against using AI for higher-risk work, including translating legal advice, analyzing complex legal issues, or making executive decisions, as AI tools can introduce bias and lack contextual understanding. Lawyers are also expected to be transparent about AI use, disclosing its role in their work when necessary and addressing client concerns regarding bias, data ownership, and ethical risks.
The regulators stress that AI must be used responsibly and cannot replace human legal expertise. The statement serves as a guiding framework to help lawyers integrate AI while maintaining ethical and professional standards. Legal regulators will continue to monitor AI developments and update guidance as AI’s role in legal practice evolves.