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Law Firm AI Policy Template, Tips & Examples

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AI policy template for law firms

Contents: Guide To AI for Law Firms: A Comprehensive Guide

It’s clear that artificial intelligence (AI) is transforming the legal industry with automation potential in law firms now reaching 74% according to the latest research. AI tools help streamline operations and accelerate case preparation. However, ethical and legal considerations are crucial to consider. An AI policy for a law firm, guided by a well-structured AI policy template, can help your firm harness the benefits of AI while mitigating risks. 

Let’s look at some AI policy examples, tips, and templates to start you off on creating a comprehensive and effective AI policy. 

When your firm is ready to embrace the power of automation, come and see what an effective legal-specific AI tool can do to help optimize your firm.

What should a law firm AI policy include?

Writing an AI policy

AI is here to stay. According to our Legal Trends Report, 79% of legal professionals are now using AI in some capacity in their practice, while 25% have adopted AI widely or universally. 

Rather than trying to stop attorneys at your firm from using AI, establish an AI policy so they’re equipped and empowered to handle the latest in legal technology safely and ethically. 

Your AI policy should address factors like:

  • AI ethics, including potential discrimination and bias
  • Guidelines for data collection and usage
  • Expectations for transparency
  • Data protection and cybersecurity best practices
  • Future risk assessment as AI develops
  • User experience and accessibility
  • Legal framework and industry standards
  • Governance, oversight, and adaptation
  • Employee training
  • Adaptation to new legal innovations

What does an AI policy look like?

An AI policy is a set of guidelines that govern an organization's ethical, responsible, and safe use of artificial intelligence. Your AI policy can be formatted in any manner that makes it easily understood by your employees and clients. The specific content of an AI policy will vary depending on your law firm’s size, client focus, and the nature of your AI usage.

Crafting a comprehensive AI policy involves:

  • Defining the scope of the policy and stakeholders affected by your policy
  • Establishing or referencing the ethical principles and values of your firm
  • Creating or referencing a data governance strategy
  • Addressing potential bias and discrimination
  • Providing training and guidance
  • Outlining regular intervals for reviewing the AI policy

Once established, you should be regularly reviewing and updating your law firm’s AI policy to reflect the latest developments and ensure that your firm remains at the forefront of responsible AI use.

What is an acceptable use policy for AI?

An acceptable use policy (AUP) outlines guidelines for how AI should be used within your organization. Your law firm’s AUP should clearly state what situations are appropriate to use generative AI, what data handling practices must be used, any required proofing and oversight that must be accomplished, and any security protocols your team requires to mitigate risks.

5 AI policy template examples

General templates can provide a solid foundation, but you’ll need to customize them to meet your firm’s specific needs, values, and goals. Here are five AI policy template examples for law firms that can help serve as a starting point:

  1. Fisher & Philips LLP’s Acceptable Use of Generative AI Tools [Sample Policy] goes over standard legal implications of AI, covering topics such as data protection and confidentiality.
  2. The Responsible Artificial Intelligence Institute’s AI Policy Template offers a comprehensive template that covers various aspects of AI use, including AI development, ethical considerations, data privacy, and risk management.
  3. MES Computing shares 5 AI Policy Templates You Can Use As a Framework, focusing on generative AI, copyright and fair use, data protection, and incorrect AI responses.
  4. HR Source’s template Generative Artificial Intelligence (AI) Use in the Workplace Policy focuses on the practical aspects of AI implementation, including technology selection, training, and risk management.
  5. American Inns of Court provides a sample AI Policy for law firms regarding Generative AI (GAI) Use and Guidance. This template has an overview of Generative AI issues in the legal profession, including ethical considerations, data privacy, and cross-border legal challenges.
  6. Clio’s AI Principles, which highlight the importance of AI in legal tech, and our commitment to users of our AI-powered technology. Creating a similar page can help your firm share its AI approach with your clients.

No matter what AI policy template you use, be sure to tailor it to your firm’s needs, be it for size, location, technological maturity, and more. Every firm has different needs and a generic AI policy, while a good start, will not be as effective as a tailored one. 

AI policy template for law firms:

Below is our AI policy template to use as a jumping off mark. Each section offers context and specific text guidelines that should help firms, big or small, shape a policy that aligns with professional standards in the legal industry.

AI Policy Template for Law Firms

Policy on Generative AI Usage at [Law Firm Name]

Purpose and Scope

Define the purpose of the AI policy, such as ensuring responsible, ethical, and compliant use of AI within your firm. Clarify the scope by mentioning which automation tools, departments/job titles, and processes that are covered in the following sections. You might include language like:

“This policy outlines the acceptable use, limitations, and ethical standards for AI tools at [Law Firm Name]. It applies to all AI-powered software that processes client and internal work, covering third-party applications and firm-developed tools.”

Ethical Standards and Bias Mitigation

Outline ethical guidelines to follow to help ensure fairness and transparency when it comes to AI-driven decisions, especially when they might impact case outcomes, client interactions, and legal research. Include phrases like:

“All AI tools must align with the ethical standards of [Law Firm Name]. AI-generated outputs should be regularly reviewed and audited to eliminate bias and uphold principles of fairness, accuracy, and transparency.”

Data Protection and Confidentiality

Data protection is vital, particularly for law firms handling sensitive client information. You’ll need to specify how your firm’s data and client data will be safeguarded and list types of information that should not be entered into AI tools.

“Staff must not input any confidential or client-specific information into AI tools unless explicitly indicated that a tool is safe for that kind of data. Only firm-approved tools [List the approved AI tools here if you have them] with secure, encrypted data protocols are permitted for sensitive information processing. If you are not sure, please verify with [Name/Team] before proceeding.”

Client Consent and Transparency

Establish the importance of transparency with clients, specifying when client consent is necessary and how AI use will be disclosed with them. Consider making this a part of your client intake process so that you are upfront about your use of AI tools (this can also be a way to market your law firm, as 70% of clients are open to the use of AI in law firms).

“Clients will be informed about AI’s involvement in their cases where applicable, with transparent disclosure of its capabilities and limitations. We communicate this with clients by [describe your current process for informing clients].”

Human Oversight and Validation

Stress the need for human review of AI outputs, which is important in your AI policy to prevent errors, reduce risks, and maintain professional standards.

“All AI-generated documents and analyses must be reviewed by a qualified attorney to ensure they meet the firm’s quality standards. Human oversight is required to verify accuracy, particularly in legal research, drafting, and client communication. When you are using AI tools, the work produced remains your responsibility to verify for completion and to be up to the standard expected of all of your work.”

Training and Education

Outline requirements for staff training on AI tools to ensure ethical and effective use across your firm. Everyone must understand how AI works, how it uses inputted data and information, and where the tools are pulling output information from.

“Employees will receive regular training on the responsible use of AI tools, including understanding limitations, ethical concerns, and verification requirements. [Law Firm Name]’s AI training programs will be updated as use increases and automation technology advances.”

Incident Response and Accountability

Describe how the firm will respond to any issues that arise from AI use, such as data breaches, ethical errors, or the use of incorrect information generated by AI.

“An incident response plan is in place to address AI-related data breaches, ethical concerns, and misinformation. The policy includes immediate reporting protocols and designated response teams [List names or teams] for AI-related issues.”

Authorized Tools and Usage

If your firm has specific tools that are authorized, you’ll need to specify these permitted tools, and any non-permitted tools, along with instructions on seeking approval for new tools.

“Only AI tools pre-approved by [Law Firm Name] are authorized for use in legal matters; at this time, the list of approved tools include [List of approved AI tools]. Employees must consult the [IT department, firm partners, or other designated AI champions] for guidance before using any new AI tool and obtain necessary permissions to ensure compliance with the firm’s data protection standards.”

Policy Review and Updates

Encourage regular reviews to adapt this policy to evolving technology and regulatory standards surrounding the use of AI tools at your firm and the wider legal industry.

“This AI policy will be reviewed and updated every [six months] to reflect new developments in AI technology and regulatory changes. The [Compliance team, IT department, firm partners, or designated AI champions] will oversee updates and communicate any policy changes to all staff.”

Approval and Sign-off

Provide a space for the necessary sign-offs by leadership, such as the managing partner or the head of compliance, to signify that the firm has officially approved the policy.

Approved by:

Managing Partner: ___________________________ Date: _______________

Chief Compliance Officer: _____________________ Date: _______________

Acknowledgment of Receipt and Agreement

Include an acknowledgment section for employees to confirm they have read, understood, and agreed to comply with the policy. This can help track who has reviewed to ensure compliance and accountability.

Employee Acknowledgment:

I, [Employee’s Name], have read and understand [Law Firm Name]’s AI Policy. I agree to comply with the policy and understand the importance of adhering to these guidelines in my work.

Signature: __________________________ Date: _______________

Note: This template is simply a guideline for shaping your firm’s AI policy. It is provided for informational purposes only and does not constitute legal or business advice. The goal is to protect your firm and your clients while adapting to technological changes, so your policy should undergo frequent updates and reviews.

Best practices for drafting a law firm AI policy

drafting an AI policy

When drafting your law firm’s AI policy, there are a few best practices to follow for clarity and to ensure security and compliance:

Set clear guidelines for human oversight

Your AI policy should define different levels of human oversight for different types of tasks within your law firm to ensure ethical decision-making and the mitigation of potential risks. After all, AI is a tool to assist humans, not replace them.

For instance, while automated tools might require less oversight, AI-generated content, such as briefs generated by AI or closing arguments, needs a thorough review from a human before its use in any client-facing or legal context. 

As well, specific types of work may require further fact-checking, performance monitoring, and evaluation. A quick proofread might be fine for an AI-drafted internal memo, but a thorough review for any client communications and briefs will be an absolute must, and your AI policy should set that expectation. 

Collaborate with key stakeholders

When developing your policy, make sure to involve key stakeholders across your law firm so that you can align your policy with your law firm’s values as well as industry standards and regulations. This could include key positions, but also consider inviting anyone who has shown an interest in AI to participate, as well as anyone you feel might be particularly resistant (addressing their concerns will likely improve adoption across your team). 

You may want to charge those stakeholders (or a subset of them) to maintain compliance of your policy at your firm (we discuss this in more depth in our section on implementing and enforcing your AI policy, below). 

Review your AI policy

Regularly reviewing your law firm AI policy will ensure you stay up-to-date on current information regarding artificial intelligence and the law. 

Also, review other AI tools for lawyers and how different law firms use AI. Be sure your law firm’s AI policy addresses common tools such as:

Implementing and enforcing your AI policy

Crafting an AI policy for law firms

Make sure you thoroughly train all employees, ensuring that every attorney, paralegal, office manager, and administrative staff member receive comprehensive instruction on your law firm’s AI policy. 

This training should encompass the policy’s objectives, ethical guidelines, data privacy requirements, the potential consequences of non-compliance, and highlight the employee’s individual responsibility to follow the guidelines in the policy. 

Ongoing data monitoring—such as tracking data accuracy and privacy adherence—will help maintain alignment with your AI policy. Assign a dedicated oversight team or appoint a compliance officer to oversee these processes, giving your team a clear point of contact for questions or concerns about AI compliance.

As with any policy, clearly outlining consequences for AI policy violations, which may include disciplinary measures and legal ramifications, helps to uphold compliance. These proactive measures enable law firms to educate their team effectively, monitor adherence, and uphold ethical AI use.

Final notes about AI policy for law firms 

AI is changing the game for legal document review. With AI tools, lawyers can streamline their work, save money, improve accuracy, and handle information faster. Whether you are tackling small cases or big-time litigation, AI-powered legal document review and automation software can make a huge difference for your law firm.

Ready to see how the automation powers of Clio can help your law firm? Contact us today to book a demo and to see the Clio advantage for yourself.