Montana Lawyer June/July 2025

Justice Meets Algorithms: The Rise of Gen AI in Law Firms

SUBMITTED BY DR. GLEB TSIPURSKY

1. Competence (Model Rule 1.1): Lawyers are required to provide competent legal representation, which involves having the requisite legal knowledge, skill, and thorough preparation. When using Gen AI tools, this means under standing both the benefits and risks of the technology. A lawyer must possess sufficient technical competence to evalu ate whether a particular Gen AI tool is suitable for the task at hand and ensure it is used effectively. This includes verifying the accuracy of Gen AI outputs, as errors or fabricated cita tions—commonly referred to as "hallucinations"—can result in serious professional consequences. 2. Confidentiality (Model Rule 1.6): Gen AI systems often require inputting sensitive client information, which raises concerns about maintaining confidentiality. Model Rule 1.6 underscores a lawyer's duty to safeguard all client related information, regardless of its source. The rule em phasizes that attorneys must ensure the security of any data shared with Gen AI tools and, if there is a lack of protection that risks unauthorized disclosure, must not use such tools without the client's informed consent. Under Model Rule 1.4, lawyers have a fiduciary obligation to inform clients about important developments and to ‘reasonably consult’ with them about the means used to achieve their objectives. 3. Communication (Model Rule 1.4): Effective com munication with clients is central to ethical legal practice. Under Model Rule 1.4, lawyers have a fiduciary obligation to inform clients about important developments and to “rea sonably consult” with them about the means used to achieve their objectives. In the context of Gen AI, this might mean evaluation whether using the Gen AI tool materially impacts the achievement of client objectives, and if so, informing the client. 4. Fees (Model Rule 1.5): Lawyers must ensure their fees and expenses are reasonable. This extends to the use of Gen AI. If, for example, a lawyer uses a Gen AI tool to draft a document in significantly less time than it would take manually, the lawyer can charge for the time spent reviewing

However, this integration must be approached thoughtfully, adhering to ethical guidelines and being mindful of potential risks. Notable Misuses of Gen AI in Law In one notorious case, a New York attorney faced sanc tions after submitting a legal brief that cited non-existent cases generated by ChatGPT. The lawyer admitted to not verifying the authenticity of these citations, leading to a $5,000 fine and a mandate to inform affected clients about the misconduct. Similarly, a Texas lawyer was fined $2,000 for filing a doc ument containing fictitious citations produced by an AI tool. The court also required the attorney to complete a course on the ethical use of generative AI in legal settings. These cases underscore the ethical and professional risks associated with unverified reliance on Gen AI outputs. They highlight the necessity for attorneys to exercise due diligence and maintain human oversight when incorporating AI into their practice. Understanding the American Bar Association's Guidance on Gen AI in Law In July 2024, the American Bar Association (ABA) issued Formal Opinion 512, providing its first formal guidance on the use of Gen AI in legal practice. The opinion makes it clear that the ethical responsibilities outlined in the ABA Model Rules of Professional Conduct remain as relevant and en forceable as ever in the context of this emerging technology. This guidance emphasizes that lawyers must fully consider their ethical obligations to ensure Gen AI tools are used responsibly and in a manner that upholds the integrity of the legal profession. The ABA's Formal Opinion 512 highlights several key Model Rules that lawyers must heed when integrating Gen AI into their practice: Integrating generative artificial intelligence (Gen AI) into law firms presents a transforma tive opportunity to enhance efficiency, accuracy, and client service.

APRIL-MAY 2025

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