California Puts Lawyers on Notice Over the Use of AI

California has taken a significant step toward regulating artificial intelligence in legal practice, placing responsibility firmly on lawyers rather than the technology itself.

Governor Gavin Newsom signed Senate Bill 574 on September 30, making California the first U.S. state to establish statutory rules specifically governing lawyers’ and arbitrators’ use of generative AI. The law takes effect on January 1, 2027.

Under the new rules, lawyers cannot delegate the practice of law to AI and must personally verify court filings, including legal citations produced or assisted by AI. They must also take reasonable steps to identify and correct inaccurate or fabricated AI-generated material. Court documents prepared using generative AI must disclose that use.

Confidentiality is another major concern. Lawyers are prohibited from entering confidential or nonpublic client information into certain AI systems, reinforcing an existing professional duty to protect client information.

The legislation comes after growing concern over AI “hallucinations,” including fictitious cases and inaccurate legal authorities appearing in court filings.

For the legal profession, the message is clear: AI may assist with legal work, but professional judgment and accountability cannot be outsourced to a machine.