Complimentary Research / Report
Ethical Issues with Using Generative AI
What lawyers need to know about competence, confidentiality, and fees when using generative AI.

Generative AI tools are quickly becoming part of everyday legal work. From research and drafting to summarization and analysis, these technologies offer speed and efficiency. They also introduce new ethical and malpractice risks that lawyers cannot afford to ignore.

This resource from Texas Lawyers’ Insurance Exchange (TLIE) examines the ethical considerations lawyers must address when using generative AI, with guidance grounded in Texas Professional Ethics Committee Opinion 705. Written by Carrie Johnson Phaneuf, Vice President of Loss Prevention at TLIE, the paper provides a practical, lawyer-focused discussion of how existing ethical duties apply to emerging technology.

Inside, you will learn how generative AI intersects with core professional responsibilities, including:

  • Competence, and the duty to understand the risks and limitations of AI tools before using them

  • Verification and supervision, including why lawyers remain responsible for AI-generated work product

  • Client confidentiality, and the risks associated with inputting sensitive information into self-learning systems

  • Client communication and consent, including when disclosure of AI use may be required

  • Fees and billing, including ethical limits on charging for time saved through AI tools

The paper draws clear parallels between AI use and traditional supervision obligations, reinforcing that technology does not replace professional judgment. Instead, it heightens the need for careful review, ethical awareness, and informed decision-making.

This resource is essential reading for lawyers seeking to use generative AI responsibly while protecting clients, complying with ethical rules, and reducing malpractice exposure.

Complete the form to download the full paper and better understand the ethical implications of generative AI in legal practice.

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