The Legal and Ethical Challenges of AI in Law Practice: What Must Be Considered

As AI transforms the legal industry, Chicago and Illinois law firms face critical ethical challenges. From maintaining client confidentiality to ensuring technological competence under the Illinois Rules of Professional Conduct, navigating this new landscape is key. Discover the risks and responsibilities of integrating AI into your practice.

The Chicago skyline with the Scales of Justice, representing the use of AI tools by local law firms.As artificial intelligence reshapes industries across the globe, law firms themselves are at the center of a quiet revolution. From AI-driven contract review and legal research tools to generative models that draft client memos, attorneys now have unprecedented access to speed, efficiency, and risk.

For business law firms in Chicago and across Illinois, the integration of AI into legal practice offers substantial promise, but also raises pressing ethical, regulatory, and professional responsibility challenges.

The Promise and Peril of AI Tools in Law

AI tools can accelerate legal research, streamline document review, assist in contract generation, and support litigation strategy through data analysis. Yet their use brings new liabilities as accuracy concerns, exposing attorneys to sanctions if used improperly in court filings, overreliance on technology, by delegating too much to automation without supervision possibly leading to malpractice or client harm, or privilege and confidentiality risks for improper use of cloud-based or open-source AI tools could result in inadvertent disclosures of client data.

Navigating AI with the Illinois Rules of Professional Conduct

These are not just technical concerns, they imply the core duties of a lawyer under Illinois professional rules. The Illinois Rules of Professional Conduct impose specific obligations that intersect with AI use:

Rule 1.1: Competence. Lawyers must provide competent representation, which now includes a duty of technological competence. Illinois attorneys using AI must understand its capabilities, limitations, and how to verify its output.

Rule 1.6: Confidentiality. The integration of AI tools often depends on third-party platforms or cloud providers. Law firms must take care to vet vendors for data encryption, storage, and privacy compliance, understand whether data input into AI systems is stored, reused, or subject to external queries and determine whether privileged material remains protected under Illinois law and applicable court standards.

Rule 5.3: Responsibility for Nonlawyers. If law firms use AI tools developed or maintained by third parties, they must ensure those vendors operate in ways that comply with the firm’s ethical obligations.

Confidentiality and Privilege in the Age of AI

In some jurisdictions, uploading client materials to unvetted AI systems has been found to waive privilege, a risk with serious effects in business litigation or regulatory investigations.

Chicago's Role in AI and Legal Innovation

Chicago is emerging as a key center of AI innovation, particularly in fintech, healthcare, and logistics. This increases pressure on local firms to stay ahead of AI-related legal developments, not only for client advisory, but within their own operations.

The Illinois Supreme Court Commission on Professionalism and organizations like the Chicago Bar Association have already begun offering guidance and CLE programming on ethical AI use, signaling this is a priority for the state’s legal regulators.

The Path Forward: Balancing Innovation with Responsibility

Artificial intelligence can enhance law firm efficiency, but it is not a shortcut for judgment, diligence, or professional responsibility. It can give a strategic edge but those who don’t learn to navigate it may face unexpected liability.

If you have any further questions, contact us at marketing@pattersonlawfirm.com or (312) 223-1699.

Frequently Asked Questions About AI and Legal Ethics

The duty of technological competence, an extension of Rule 1.1, requires Illinois lawyers to understand the benefits and risks associated with relevant technology. When using AI, this means understanding its limitations, potential for bias, and how to properly supervise and verify its output to ensure the final work product is accurate and competent.

Yes. Under Rule 1.6, lawyers must protect client confidentiality. If a third-party AI tool stores, shares, or uses client data for training its model without explicit consent and proper safeguards, it could constitute an inadvertent disclosure and a breach of confidentiality. Firms must vet AI vendors for their data privacy and security protocols.

Rule 5.3 requires lawyers to supervise non-lawyer assistants. AI tools can be viewed as a form of non-lawyer assistance. Therefore, attorneys are responsible for the work product generated by AI and must have measures in place to review and validate its output to ensure it complies with the firm's ethical obligations.

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