Introducing Your AI to Your Clients
Plus, 3 Common Questions Clients Will Have for you About Your Use of AI, and Ideal Responses.
image by Dall-e to prompt casually dressed client meeting a professional-looking humanoid robot lawyer
Introducing Your AI to Your Clients
You’ve adopted AI in your legal practice. Do you need to inform your clients about it? Recently I was speaking with a fellow lawyer about this. He was not concerned about notifying his clients that his firm is using AI because, in his opinion, they should just assume all lawyers are using AI. That struck me as perhaps true, but a bit flippant.
Considerations When Adopting AI
There are several considerations involved with lawyers using AI. First, we have ethical obligations that should be top of mind. According to the American Bar Association's Model Rules of Professional Conduct, Rule 1.4 (which are echoed in most states) lawyers are required to keep clients reasonably informed about the status of their matters and explain matters to the extent reasonably necessary to permit the client to make informed decisions.1 This should include informing clients about the use of AI tools if it impacts the legal services provided or the client's decision-making. If you are using AI for administrative purposes only—to automate routine communications, or to assist in billing—or for substantive legal work, then informing your clients about its use in your office is optional. If you are using AI to help with drafting documents, analyzing claims, or for predictions—as I would argue you should be—you need to notify your clients about your use.
Model Rules aside, we also have practical considerations. One of my favorite senior attorneys during a summer internship emphasized to me that as lawyers, we trade on our reputation. A reputation can attract clients, give you credibility with judges, and smooth the way for a request to opposing counsel for an extension of time. The opposite of each of these is also true. Protecting your reputation is of paramount concern. To help maintain your reputation with your clients, maintain transparency about your use of AI.
Transparency will build trust and allows clients to understand how you are handling their matters. If your use of AI significantly affects the outcome or process of a client's case, informing the client about the use of AI is part of maintaining this transparency. We must also be clear and transparent with our clients about our AI usage affects their bills. Are you passing on a charge for your use of AI tools? If so, you need to be clear about this as well. Your discussion with your clients and potential clients should meet two crucial goals: first, inform them that you are using Gen AI tools or technology, and second, show them how Gen AI makes their situation better through either lower attorneys’ fees, faster completion of work product, higher quality, or some combination of those. All your communications with clients or potential clients should aim to satisfy these objectives.
Discussing AI with Current Clients
Incorporating AI into your legal practice is not just about making use of the latest technology; it's also about maintaining transparency and building trust with your current clients. Providing clear explanations and obtaining informed consent are crucial steps. Explain how AI tools will be used in their case, highlighting the benefits such as increased efficiency and accuracy, which should equate to lower legal fees. Give your current clients specific examples of tasks in which you will use AI. Perhaps even give them an example of how you have used AI to make a process more cost effective.
Effective use of AI will likely lower your attorney’s fees—which should go a long way to smoothing the ruffled feathers of any of your clients who are uncertain about your AI usage—however you must still set reasonable expectations. AI is not going to make their legal work nearly free and completely bullet proof. Rather, the cost savings will be in the aggregate, and might not show in every single bill. And your usage will also be reflected in the quality of your work product.
Your clients’ concerns about your use of AI will likely stem from worries about either the confidentiality of their personal information, or the accuracy of AI output. In regard to confidentiality, you can assure your clients that you only use AI tools that you have vetted, and that their confidential information is not at any greater risk than with any other cloud application.
In regard to accuracy, lawyers who have been in the news for using AI were sanctioned for filing documents with false citations. This could have easily been prevented by their careful and thoughtful review of the AI output before relying on it in legal documents. Remind your clients that you and your associates will always review all AI output and modify it as appropriate. Not only will this satisfy the rules of professional responsibility, but also will help your clients understand that you are a crucial part of this equation. Have an office policy for AI usage that you can refer to in order to help alleviate their concerns. And keep in mind that Gen AI in law works best when it is used by those who possess legal knowledge. This approach helps clients understand the role of AI and feel confident in your use of it.
Informing Potential Clients and Obtaining Consent
During your initial consultations, or before, bring up the topic of AI, or have your staff do so if they have first contact with potential clients. Explain how you are using AI tools, how they are integrated into your practice and the specific benefits they bring, such as improved efficiency, accuracy, and overall service quality. Setting clear expectations from the outset helps your potential clients understand the value AI adds to their case, and to your practice. Additionally, be upfront about any potential cost implications, whether it involves a separate AI usage fee or affects your hourly rates. By discussing AI early, you can help clients understand the benefits of Gen AI, build a foundation of trust, demonstrate your commitment to leveraging cutting-edge technology for the client's benefit, and avoid any misunderstandings related to billing and service delivery.
AI Clause in Your Engagement Letter
Including AI usage details in engagement letters is essential for transparency and professionalism. Outline how you will use AI, the costs involved, and the expected benefits. Specify that your firm will use AI tools for tasks like document review and legal research. Detail how your AI usage will be reflected in your fees or on their billing statement. Finally, affirm your commitment to maintaining confidentiality and security. This ensures clients are fully informed and consent to the use of AI from the start.
For instance, your engagement letter should say something like this:
"To continue providing you with the highest quality legal services, we have integrated advanced AI tools into our practice. We have carefully evaluated the AI tools we will use, and we train our staff on how to use these tools. We have an AI policy in place at our firm to provide you with the highest quality of legal services and protect your confidential information.
These AI tools allow us to process information more quickly and accurately, reducing the time needed for tasks such as document review and legal research, which lowers the costs of those tasks. Also, the effective use of these AI tools will also improve the quality of work. We are confident both of these results will benefit our clients.
Contact me if you have questions or concerns about our use of AI tools, or our AI policy.”
If you are passing on fees for AI tools, or adjusting your rates to reflect AI usage, you should have a clause in your letter You might also consider adding, if applicable:
“As a result our increased efficiency, our hourly rates will increase to [new rate] per hour. This adjustment reflects the enhanced efficiency and quality of our services, insuring you receive the best possible representation. We believe this change will ultimately benefit you through faster turnaround times and improved outcomes. If you have any questions or concerns about this adjustment, please do not hesitate to discuss them with us."
Conclusion
Incorporating AI into your legal practice is a significant step that requires careful consideration and clear communication with your clients. By being transparent about your use of AI, explaining its benefits, and addressing any concerns, you can build trust and maintain your professional reputation. Remember that AI is a tool to enhance your legal services, not replace your expertise. Always review and modify AI-generated content and ensure that your clients understand your crucial role in the process. By following these guidelines and maintaining open lines of communication, you can successfully integrate AI into your practice while upholding your ethical obligations and providing high-quality legal services to your clients.
Top three Questions Clients Might Ask About Your Use of AI in Their Legal Work, and Ideal Responses:
Here are three of the most common questions clients might ask about AI use in legal practice, along with ideal responses for you to use:
1. "If you’re using AI to practice law, can’t I just use AI myself? Why do I need to hire you as my lawyer?"
Ideal Response:
"AI can’t replace lawyers. It's a tool that enhances our capabilities, much like legal research databases or word processing software. AI helps us work more efficiently on certain tasks, but it cannot replace our legal judgment, experience, or the personal attention we provide to your case. My role is to use AI responsibly, interpret its outputs, and apply them to your unique situation. You're still getting my expertise and personal oversight throughout your case."
2. "How does using AI affect the confidentiality of my information?"
Ideal Response:
"Protecting your confidentiality is our top priority. We've carefully selected AI tools that meet strict security standards and comply with attorney-client privilege requirements. All data used with these tools is encrypted and protected. Additionally, we have firm-wide policies in place to ensure that no confidential information is inappropriately shared or stored. Rest assured our use of AI doesn't change our commitment to maintaining the strictest standards of confidentiality for your information."
3. "Will using AI make my legal fees lower?"
Ideal Response:
"The primary benefits of our using AI are in the enhanced quality of work, faster turnaround times, and the more in-depth and comprehensive analysis we can provide. AI will reduce the time spent on certain tasks, which will in turn lead to cost savings for you. Our fees reflect the value of our expertise in using these tools effectively, ensuring you get the best possible legal service. While AI can make some processes more efficient, thereby lowering our legal fees, we are also excited to improving the quality and efficiency of our services. We're always happy to discuss our fee structure and how our use of AI contributes to the value we provide."
I wrote more extensively on the ethical issues associated with AI usage in law in this article published in the Iowa Lawyer Magazine, November, 2023.