California passes first state law on lawyers’ use of artificial intelligence

California Governor Gavin Newsom has signed the first state law of its kind setting rules on how lawyers are allowed to use generative artificial intelligence in their work, as Reuters reports. The law, known as SB 574, was signed on Wednesday together with other artificial intelligence measures aimed at protecting workers, empowering doctors and preventing online fraudsters.

Under the new measure, a lawyer may not “delegate the practice of law” to generative artificial intelligence. The lawyer responsible for filing a document in court must personally verify citations, including those provided by artificial intelligence; lawyers must take “reasonable steps” to verify AI outputs, to correct any false or hallucinated results and to declare the use of artificial intelligence in documents filed in court. They are prohibited from entering confidential or non-public information into certain generative AI systems, while arbitrators are restricted from delegating any decision-making to an AI tool.

No other state has passed a law aimed at the use of this technology by lawyers and arbitrators, Reuters reports.

Daren Orzechowski, a technology transactions partner in Silicon Valley at the firm A&O Shearman, said the law reminds lawyers to check and verify AI outputs. Ariel House, a litigation partner at Baker Botts in San Francisco, said the requirement could be a heavy burden for solo practitioners and small firms. While Jeff Fisher of the firm Farella Braun + Martel said he does not see it as a radical change: “The benefits and efficiencies are too great to ignore.”