AI Creates New Ethical Challenges in Legal Tech

Legal technology has reshaped legal work by introducing AI-driven document review, predictive litigation analytics, and automated contract generation. According to an article by Septeo Legal Suite, these advancements promise efficiency and cost savings but raise critical ethical challenges concerning equity, transparency, and adherence to legal standards. 

One example of new ethical challenges in legal tech is AI’s reliance on historical data, which can perpetuate biases and disproportionately affect marginalized groups, as seen in predictive policing and sentencing tools. Additionally, AI’s “black box” nature complicates transparency, making it difficult for legal professionals to explain AI-driven decisions—a key obligation under legal ethics. The article suggests auditable and understandable tools to ensure accountability and maintain client trust.

Privacy and data security are also crucial, as legal professionals handle sensitive client information. In-house counsel must ensure that AI tools are designed with robust security protocols and comply with data protection regulations like GDPR to safeguard privacy.

In-house counsel play a critical role in navigating these ethical issues in legal tech by ensuring their organizations use technology responsibly. According to ABA Formal Opinion 512, lawyers must demonstrate technological competence, protect confidentiality, clearly communicate AI’s role to clients, and ensure that fees are justified. This demands active engagement with technology rather than relying solely on IT or external vendors.

The legal industry can support ethical AI use through ongoing education, collaboration between technologists and legal professionals, and the development of ethical frameworks. These measures enable the legal field to embrace technology while upholding its core values.