practice

Artificial Intelligence and Attorney-Client Privilege

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SUMMARY Attorney-client privilege faces significant challenges with AI use. When lawyers input client information into AI systems, they risk waiving privilege by sharing confidential data with third-party providers. The Rules of Professional Conduct require attorneys to maintain confidentiality, demonstrate technological competence and ensure adequate safeguards. Lawyers should anonymize information, use specialized legal AI tools with … Read more

Equity or Cash: Temptation & Risk for Lawyers

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Sooner or later a startup lawyer will hear the suggestion that payment be postponed or waived in exchange for equity. What is the lawyer to do when the client cannot (or would rather not) pay and offers stock instead? On its face, taking equity looks like a practical solution. The client preserves cash, the lawyer … Read more

AI-Powered Contract Analysis in M&A

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A variant of this post was published in Deal Points, the Newsletter of the Mergers and Acquisitions Committtee of the American Bar Association. In mergers and acquisitions, contracts form the backbone of transactions, governing crucial aspects such as liabilities, obligations, warranties and intellectual property rights. The thorough analysis of these contracts is a critical component … Read more

Science Fiction Cinema’s Lessons for AI Integration in Legal Practice

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This article was originally published in the April 2025 issue of New Jersey Lawyer, a publication of the New Jersey State Bar Association, and is reprinted with permission. Recent developments, such as the California Bar’s 2024 guidelines on AI use in legal practice, underscore the urgency of challenges faced by law firms in balancing technological … Read more

New AI Capabilities Raise Critical Questions for Legal Practice

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The legal profession potentially stands at the threshold of another transformative shift with Anthropic’s latest advancement in artificial intelligence, its Claude Computer Use (CCU). This new capability allows the AI to autonomously control computers, performing tasks that previously required human intervention, such as navigating files, running applications and executing complex workflows. This advancement holds great … Read more

Alternatives to the Attorney Hourly Rate

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In the wake of the 2008 financial crisis, many law firms rethought their traditional billing practices. Clients, under financial pressure themselves, began to demand more value and predictability in their legal costs. This shift in client expectations, coupled with the rise of legal resources available online, led to the growing popularity of alternative fee agreements. … Read more

Why People (and Lawyers) Use Legalese

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When most people think of a contract, they envision a document filled with dense, complex language that seems far removed from everyday speech. This type of writing, often referred to as “legalese,” is typically associated with professional legal documents drafted by trained lawyers. However, a study by Eric Martínez, Francis Mollicab and Edward Gibson has … Read more

ABA Formal Opinion on AI

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The American Bar Association’s Standing Committee on Ethics and Professional Responsibility has issued a formal opinion addressing the ethical considerations surrounding lawyers’ use of generative artificial intelligence (GAI) tools in legal practice. Formal Opinion 512, released on July 29, 2024, provides crucial guidance for attorneys navigating this rapidly evolving technological landscape. At the heart of … Read more

Legal Engagement Letters

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An engagement letter is the contract that comprehensively defines and governs the attorney-client relationship. The letter serves the critical function of allowing the lawyer and client to formally memorialize the scope, terms, and mutual understandings regarding all aspects of the legal engagement from the outset. A key component is precisely identifying who the client is … Read more

AI and the Transactional Lawyer

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Transactional lawyers can leverage AI in several ways to enhance their practice and deliver more efficient and effective services to clients. AI can be a powerful tool for transactional lawyers, but it’s important that AI be used as an aid and not a replacement for human expertise and judgment. AI systems need to be carefully … Read more

AI in Legal Writing: Hallucinations and other Risks

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Artificial intelligence (AI) has been making inroads into various industries and the legal field is no exception. With the advent of powerful language models like ChatGPT, the prospect of using AI to assist in drafting legal briefs is a tantalizing possibility. However, as with any new technology, there are significant risks associated with the use … Read more

AI vs.Human Assistants

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AI systems can take on many tasks that human assistants traditionally perform, but they certainly won’t replace human assistants anytime soon. AI excels at automating routine, repetitive tasks like data entry, scheduling, and information lookup. Hence, AI can augment and assist human assistants by handling the more mundane aspects of their jobs. However, human assistants … Read more