Guarding Client Privacy in the Age of AI

As part of LMICK’s continued AI series, this month LMICK focuses more on safeguarding client confidentiality and privacy when using AI technology. LMICK has previously discussed many of the ethical considerations lawyers face when using AI in their legal practice. But client confidentiality and protecting client information is paramount as denoted in SCR 3.130 (1.6) (Confidentiality of Information).

There are some primary concerns with confidentiality in AI.

Primary Concerns with confidentiality in AI:

  1. Confidentiality & Data Security
    • AI tools often require access to client data, which can pose risks if data is not adequately protected.
    • Unauthorized access or data breaches can compromise privileged information.
  2. Compliance with Legal & Ethical Standards
    • Lawyers must adhere to confidentiality rules under professional conduct regulations, including, but not limited to, SCR 3.130 (1.6) (Confidentiality of Information).
    • AI providers may not comply with legal industry-specific privacy standards.
  3. Third-Party Data Handling
    • Many AI tools rely on cloud-based processing, meaning client data is often processed by third parties, raising concerns about data control and ownership.
  4. Bias & Accuracy
    • AI systems may introduce bias or produce inaccurate results, leading to potential ethical and legal liabilities.
    • Inaccurate AI-generated legal insights could mislead lawyers or clients.

However, there are measures that you can take to ensure client privacy when using AI.

Measures to Ensure Client Privacy:

  1. Use Secure & Compliant AI Solutions
    • Select AI tools specifically designed for legal practice with strong encryption, access controls, and compliance with data protection laws (e.g., GDPR, HIPAA).
  2. Anonymization & Data Minimization
    • Remove or mask personally identifiable information (PII) before inputting data into AI tools.
    • Only provide AI systems with the minimum amount of necessary information.
  3. Confidentiality Agreements with AI Providers
    • Ensure AI vendors comply with legal confidentiality requirements. Don’t hesitate to ask AI vendors questions on these issues.
    • Use contractual safeguards to prevent misuse or unauthorized data access.
  4. On-Premises or Private Cloud AI Solutions
    • Instead of public AI services, consider deploying AI on secure, private servers or trusted legal-tech platforms.
  5. Regular Risk Assessments & Training
    • Conduct periodic audits to identify privacy vulnerabilities in AI systems.
    • Train lawyers and staff on AI-related risks and best practices for protecting client data.
  6. Human Oversight & Verification
    • AI should assist, not replace, legal judgment. Always verify AI-generated insights before relying on them.
    • Maintain a human-in-the-loop approach to ensure accuracy and ethical compliance.
  7. Follow Jurisdictional Privacy Laws
    • Ensure AI use aligns with client confidentiality laws in relevant jurisdictions.
    • Stay updated on evolving regulations related to AI in legal practice.

By implementing these measures, lawyers can responsibly leverage AI while safeguarding client privacy and maintaining an ethical legal practice.