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Artificial intelligence tools are transforming the practice of law, but they come with significant risks that lawyers and clients must understand. Although a recent federal court ruling ruled that the use of public AI chatbots may waive attorney-client privilege, courts continue to sanction attorneys for errors in AI-generated filings. Learn the steps legal departments should take to protect privileged communications and maintain ethical standards when using AI technology.
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Company law/commercial law
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Artificial intelligence is reshaping how lawyers research, draft, and advise.
However, AI has introduced two legal risks that users cannot ignore.
- Courts have sanctioned lawyers for AI-generated errors in court filings.
- Additionally, a February 2026 federal ruling held that a client’s own use of a public AI chatbot is not protected by attorney-client privilege.
This video explains both risks, outlines the decisions behind them, and identifies steps in-house lawyers can take now, including AI usage policies and guidance for legal departments.
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The content of this article is intended to provide a general guide on the subject. You should seek professional advice regarding your particular situation.
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