Source: Legal Support Network

The Legal Support Network, featuring insights from OneAdvanced, addresses the growing concern of "Shadow AI" within law firms and its significant implications for compliance and data security. "Shadow AI" refers to the use of Artificial Intelligence applications and tools by employees without the firm's knowledge, approval, or oversight. This often occurs when legal professionals, seeking to improve their efficiency, turn to publicly available generative AI platforms to assist with tasks like drafting emails, summarizing documents, or conducting research.

The article warns that this unauthorized use of AI creates substantial risks. Inputting confidential client information or sensitive firm data into unsecured, third-party AI models can lead to serious data breaches, violations of client confidentiality, and breaches of data protection regulations like the GDPR. It undermines a firm's ability to maintain control over its data and can expose it to significant legal and financial liabilities. The key takeaway is the urgent need for law firms to establish clear and comprehensive AI governance policies. These policies should define which AI tools are approved, provide guidelines for their proper use, and include robust training programs to educate all personnel about the risks associated with "Shadow AI."