AI Assistants
Enterprise AI assistants—from coding copilots to document analysis tools—create new categories of legal risk. Proper governance frameworks address confidentiality, accuracy, and liability allocation.
Key Considerations
- →Establish AI acceptable use policies
- →Manage confidential data in AI systems
- →Document AI decision-making processes
- →Allocate liability for AI outputs
Confidential data in AI systems
Employees often input confidential information into AI assistants without considering implications. Risks include: exposure of trade secrets through training data, violation of client confidentiality obligations, inadvertent waiver of attorney-client privilege, and breach of contractual confidentiality terms. Implement technical controls preventing sensitive data input and train employees on appropriate use.
AI acceptable use policies
Every organization using AI assistants needs clear policies covering: prohibited use cases (confidential client data, regulated decisions), required human review for outputs, citation and verification requirements, data handling and retention, and accountability for AI-assisted work. Update policies as AI capabilities evolve.
Liability for AI outputs
When AI-assisted work causes harm, who's liable? Generally, the human using the tool remains responsible—AI doesn't create immunity. Professionals retain their duties of care regardless of AI assistance. Contracts should address: disclaimers about AI use, representations about output accuracy, and indemnification for AI-related errors.
Documentation and audit trails
Maintain records of AI involvement in significant decisions: which tools were used, what inputs were provided, what outputs were generated, and what human review occurred. This documentation supports defensibility if decisions are challenged and enables consistent quality oversight of AI-assisted processes.
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