Legal Practitioners’ Liability Committee of Victoria, Australia, publishes guide for lawyers using AI in legal practice

The Legal Practitioners’ Liability Committee, an independent statutory authority providing professional indemnity insurance to Victorian barristers and solicitors as well as many of Australia’s national law firms, has published a guide on the limitations and risks for lawyers using generative AI in their practices. The popularity of generative AI platforms has increased among lawyers, offering benefits such as legal research assistance, document drafting, and instant access to information. However, there are risks and limitations associated with their use.

One significant concern with AI tools is their capacity to generate false responses, known as ‘hallucinations’. This can lead to fabricated content or citations of non-existent cases. Therefore, content generated by AI must be carefully scrutinized and independently verified.

Another such risk is confidentiality, as data supplied by the user can potentially become part fo the public domain. Similarly, privacy is an issue as most AI products collect personal data including IP address and browser information and shares it with unspecified third parties.

The guide also offers some risk management safeguards, these include: independent verification, data protection, copyright compliance, privacy compliance, staff supervision, training and awareness, and client engagement.

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