Why Do Some Law Firms Ban AI—While Others Embrace It?
While some law firms are investing heavily in AI, others are choosing to avoid AI due to concerns over reliability, security, and ethical risks.
Why Some Law Firms Avoid AI:
- Concerns over AI’s accuracy and ability to provide reliable legal insights[1]: Some law firms avoid AI due to concerns that it may generate inaccurate or misleading legal insights, struggle with nuanced legal reasoning, and require constant verification, potentially leading to errors, ethical risks, and malpractice liability.
- Ethical dilemmas regarding AI replacing human legal judgment[2]: There is a common pattern of hesitating to use AI due to ethical concerns that it could replace human discretion, compromise professional responsibility, and lead to decisions lacking moral and contextual judgment.
- Fear of violating attorney-client privilege due to AI data processing risks[3]: Caution arises regarding AI due to the risk that its handling of sensitive data could breach attorney-client privilege and jeopardize confidentiality.
Why Other Law Firms Are Investing in AI:
- AI accelerates legal research and document review, improving efficiency[4]: This is done by rapidly analyzing vast legal data, identifying key insights, automating tasks like contract analysis and compliance checks, and enhancing efficiency to allow legal professionals to focus on higher-value work.
- Automation reduces costs and enhances client service:[5] Automation optimizes workflows, reducing repetitive tasks, improving accuracy, speeding up processes, and enabling legal professionals to focus on delivering personalized and high-value services to clients.
- Firms using AI gain a competitive edge in a technology-driven legal landscape[6]: Firms gain a competitive advantage through the automation of tasks, enhancing accuracy, streamlining workflows, leveraging data-driven insights, and improving efficiency to deliver faster, cost-effective, and high-quality legal solutions.
Real-World Example: AI-Generated Citation Errors in Court

A recent case highlights these risks. In Iovino v. Michael Stapleton Associates,[7] a federal judge in Virginia declined to sanction attorney Thad M. Guyer after he submitted an appellate brief containing erroneous citations generated by AI. The citations referenced cases that did not exist or were misquoted, leading to a judicial review of Guyer’s conduct. While the court acknowledged the increasing role of AI in law, the judge stressed that attorneys remain responsible for ensuring accuracy in their filings. Guyer avoided sanctions by taking full responsibility for the mistakes and pledging to implement safeguards, including verifying citations with legal databases like Westlaw.
This case underscores the importance of due diligence when using AI in legal work. Lawyers must verify AI-generated content, ensure compliance with ethical guidelines, and take accountability for any errors. AI can assist legal professionals, but it cannot replace human judgment and rigorous legal review.
The Role of AI in Legal Work: Hierarchy of Approval in AI-Generated Work
AI is not a replacement for lawyers but a tool to enhance their efficiency. While lawyers remain responsible for verifying and ensuring the accuracy of their work, AI can streamline this process by providing tools that assist with citation management and source verification. Rather than replacing human judgment, AI tools that enable lawyers to verify their sources used for their outputs should be preferred, as they help ensure accuracy while reducing the time spent on verification and research. By leveraging AI’s ability to process vast amounts of information quickly, law firms can enhance the precision and productivity of legal work. As long as verification remains in the hands of lawyers, AI can play a crucial role in reducing administrative burdens and improving efficiency, ultimately allowing firms to focus on delivering high-quality legal services.
Hierarchy of Approval in AI-Generated Work
Just as associates traditionally rely on partners to review their work, AI-generated output can undergo a similar hierarchical review. Associates can play a key role in reviewing AI-generated research and legal drafts before they reach senior lawyers or partners, ensuring that the work aligns with legal standards and is fully verified. AI tools like casepal make this process more efficient by providing a legal AI-powered workspace designed specifically for law firms, professional service providers, and in-house legal teams. With tools for legal analysis, drafting, reviewing, and translating, casepal helps lawyers verify citations, maintain ethical compliance, and extract key insights from contracts, policies, and court documents. Rather than replacing human oversight, casepal enhances the traditional workflow—ensuring that AI-generated content is accurate, compliant, and aligned with firm-specific templates and writing styles. By integrating a structured review process with AI tools built for legal work, firms can reduce risks while maximizing efficiency, accuracy, and cost-effectiveness.
The Future of AI in Law: Unlocking Benefits and Avoiding Misuse
AI is reshaping the legal industry, offering law firms the ability to analyze, draft, review, and translate legal texts with greater speed and accuracy. While concerns over AI’s reliability persist, solutions like casepal address these challenges by providing secure, industry-specific AI tools tailored for legal professionals.
Unlike generic AI models, casepal enables firms to:
- Chat with AI for legal analysis and research using their firm’s specific data
- Draft contracts, policies, and legal documents in compliance with firm templates
- Review compliance and extract insights from contracts and regulatory documents
- Translate legal texts while preserving precise legal terminology
- Summarize and simplify legal content for quick yet accurate insights
- Centralize legal knowledge in a secure library that integrates with all casepal tools
The case of Iovino v. Michael Stapleton Associates highlights the risks of unverified AI-generated citations. However, AI does not have to be a liability—with the right tools, law firms can ensure accurate, verifiable outputs while streamlining workflows and reducing administrative burdens.[8] By embracing AI solutions designed for legal work, firms can gain a competitive edge without compromising accuracy or ethics. The future of AI in law is not about replacement—it’s about enhancing human expertise with the right technology.
[1] https://blog.cloudscale.io/posts/chatcmpl-9nUq1GJ1XX6htviqx2ah5TDZrCdK4
[2] https://www.trialview.com/resources/can-and-should-ai-make-decisions
[3] https://www.lexpert.ca/news/features/survey-reveals-in-house-counsel-concerns-over-ais-risks-to-legal-privilege-and-data-security/388738
[4] https://hudsonweekly.com/how-ai-document-review-is-revolutionizing-efficiency-and-accuracy/
[5] https://www.theaccessgroup.com/en-gb/legal/ai-in-legal/what-are-the-benefits-of-ai-for-law-firms/
[6] https://blog.ayfie.com/ai-as-a-competitive-advantage-for-the-legal-sector
[7] Iovino v. Michael Stapleton Assocs., 600 F. Supp. 3d 610 (W.D. Va. 2022)
[8] https://www.lexisnexis.com/blogs/en-ca/b/legal-ai/posts/ai-bias-prevention-lawyers