US Courts: Closing AI Judgment Maturity Gap in Legal Industry

• The legal industry is rapidly adopting AI technology, but there is a growing gap between comfort with AI and judgment maturity.
• Lawyers and compliance officers must exercise proper professional judgment when using AI tools to avoid malpractice claims.
• Inadequate supervision of AI use can expose firms to significant risks, including reputational damage and malpractice claims.

The exercise of professional judgment is essential for lawyers, as it cannot be delegated to AI.

The legal industry has rapidly adopted AI technology, with many law firms embracing its use in various aspects of their practice. According to the 2025 Pew Research Center findings and Stanford's 2025 AI Index, a majority of businesses are using, investing in, and experimenting with AI. The Thomson Reuters 2025 Generative AI in Professional Services Report and ILTA's 2025 Technology Survey also indicate that the legal industry is increasingly relying on AI. However, this rapid adoption has created a gap between comfort with AI technology and judgment maturity. Lawyers and compliance officers are being urged to exercise proper professional judgment when using AI tools, as inadequate supervision of AI use can lead to malpractice claims.

The legal profession is built on core principles of logic and rules, with a strong emphasis on the intentional use of language and reasoning. Legal practitioners carry an important responsibility in serving clients, adhering to the rules of professional conduct and shaping their practice according to ethical standards. The exercise of professional judgment is essential for lawyers, as it cannot be delegated to AI. There have been several high-profile cases highlighting the importance of proper supervision of AI use, including Mata v. Avianca, Inc., where attorneys were sanctioned for submitting hallucinated cases. Professional liability insurance guidance also cautions against relying on unverified AI outputs.

The growing risk of malpractice claims due to inadequate supervision of AI use is a pressing concern for lawyers and compliance officers. As the legal industry continues to adopt AI technology, it is essential that professionals exercise proper professional judgment when using these tools. Failure to do so can expose firms to significant risks, including malpractice claims and reputational damage. The American Bar Association's (ABA) Standing Committee on Ethics and Professional Responsibility has emphasized the importance of exercising professional judgment in Formal Opinion 512. Lawyers must take steps to ensure that AI-assisted filings are properly certified and supervised, as courts are increasingly scrutinizing these submissions.

Lawyers and compliance officers should be aware of the growing risk of malpractice claims due to inadequate supervision of AI use, and take steps to ensure proper professional judgment is exercised when using AI tools.

Source: Original reporting via ILTA's Peer-to-Peer Magazine