#543: AI Ethics: What Lawyers Need to Know, with Hilary Gerzhoy
Jan 30, 2025
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In this conversation, Hilary Gerzhoy, a legal ethics and malpractice litigator, dives deep into the complex world of AI in the legal field. She explores the ethical risks, like confidentiality, that lawyers face when adopting AI technologies. The discussion highlights the evolving billing models and the potential impact of AI on accessibility to legal services. Gerzhoy emphasizes the importance of viewing AI as a thought partner, enhancing critical thinking rather than displacing jobs, and shares insights on how to navigate these changes responsibly.
Lawyers must prioritize client confidentiality by selecting closed AI systems over open ones to mitigate ethical risks in legal practice.
The integration of AI into law is transforming job roles, challenging traditional billing models, and prompting a reevaluation of value in legal services.
Deep dives
Ethical Implications of AI for Lawyers
The integration of artificial intelligence (AI) in legal practices raises significant ethical concerns that lawyers must address. The primary obligation of attorneys is to protect client confidentiality while effectively utilizing AI technology. This includes ensuring that sensitive information is not placed in open AI systems like ChatGPT, which could compromise confidentiality. Instead, lawyers are encouraged to explore closed AI systems that maintain privacy while enhancing their practice.
Transformational Impact on Legal Jobs
The introduction of AI in the legal sector does not signal the end of legal careers; rather, it transforms the nature of jobs available. With AI managing tasks traditionally seen as dull, like document review, lawyers are freed to engage in more complex and intellectually stimulating work. Furthermore, as AI creates new roles that require specialized knowledge and interaction with technology, the legal field experiences an evolution of job opportunities. This shift mirrors historic technological advancements, like the rise of the internet, which similarly led to the birth of new career paths.
The Necessity of Adaptability in Billing Models
As AI becomes more ingrained in legal workflows, the traditional billing model based on billable hours faces challenges. With the potential for AI to drastically reduce the time needed for certain tasks, lawyers must navigate how to bill clients fairly and sustainably. This upheaval calls for law firms to rethink their pricing strategies, as clients will seek value for their expenditures, pushing for flat-fee arrangements as a more transparent alternative. Ultimately, the pressure is on legal professionals to adapt to a market increasingly fueled by efficiency and cost-effectiveness.
AI as a Thought Partner for Lawyers
AI is positioned to serve as a thought partner for lawyers rather than a replacement, enhancing their decision-making processes. By utilizing AI as a brainstorming tool, lawyers can discover new perspectives and assess complex situations more thoroughly. However, it is essential that attorneys do not overly rely on AI outputs, as the technology is not yet equipped to replace the critical thinking and judgment inherent in legal work. Therefore, while AI can significantly augment a lawyer's capabilities, the profession’s ethical standards and responsibilities remain paramount.
In this conversation, Hillary Gerzhoy discusses the intersection of legal ethics and artificial intelligence (AI) in the legal profession. She highlights the risks associated with incorporating AI into legal practices, emphasizing the importance of confidentiality and the distinction between open and closed AI systems. The conversation also delves into the supervisory obligations lawyers have when using AI, the challenges of traditional billing models in light of AI efficiencies, and the potential future of AI in making legal services more accessible and affordable.
Chapters:
0:00 - Women in AI Summit
03:45 - AI as a Thought Partner
06:43 - Introduction to iManage
14:35 - Introduction of Hilary Gerzhoy
17:45 - Impact of AI on the Public
19:35 - Relying on AI Technology
22:58 - Open vs Closed AI Systems
25:00 - Billing for AI Services
27:30 - Innovation vs Profit in AI
34:34 - AI's Impact on Lawyer Productivity
35:50 - Access to Justice with AI
37:35 - Final Thoughts on AI Integration
37:47 - Advice for Attorneys on AI Implementation
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