Artificial intelligence (AI) expands across various industries and raises important ethical and practical considerations within the legal profession, especially for the public sector. Australia’s legal services sector actively adopts AI tools, particularly large language models (LLMs), to boost efficiency in tasks like document drafting and legal research. These technologies highlight significant issues related to data privacy, security, and the need for strong governance in managing sensitive legal information.

Fiona McLeay, Board CEO and Commissioner of the Victorian Legal Services Board, emphasises the crucial duty of lawyers to uphold ethical standards while integrating AI technologies: “It’s essential for legal professionals to understand the capabilities and limitations of AI tools. AI can’t replace the expertise and ethical judgement that lawyers provide. While AI can assist in document preparation and analysis, it must never substitute a lawyer’s critical judgement.”

AI tools, including generative AI and LLM, significantly enhance efficiency and productivity; however, they also pose risks that may jeopardise client confidentiality and data security. The Law Society of New South Wales (LSNSW) and the Victorian Legal Services Board recently issued directives that stress the need for caution when using AI tools. Legal professionals should avoid entering confidential, sensitive, or privileged client information into public AI chatbots or any unprotected platforms. As AI systems like ChatGPT become more common, concerns about data breaches and the unauthorised use of client information will remain critically important.

AI ethics in legal practice

1. Data privacy and security

Cloud-based AI systems pose significant cybersecurity risks. The LSNSW emphasises that legal practices must carefully assess the contractual terms of any commercial AI tools they utilise, making sure they comply with stringent data protection standards.  “When lawyers use AI to support their work, it is their duty to ensure the confidentiality and security of client data,” McLeay states. “This includes a rigorous review of data governance practices and network security measures to prevent breaches.”

2. Confidentiality and ethical judgement

Artificial intelligence cannot make ethical decisions or provide confidential legal counsel. When using AI, legal professionals need to exercise caution to avoid relying solely on its generated information. AI tools can create content that appears credible, but they may not always deliver accuracy or completeness. Researchers extensively document the dangers of “hallucinations”—AI-generated content that may seem coherent but is factually inaccurate. Legal professionals need to meticulously review all AI-generated content to verify its accuracy and conform to the strict legal standards.

3. AI in legal workflows

AI is revolutionising legal workflows by enhancing activities such as legal research, document reviews, and client communications. AI should take on tasks that carry lower risks and can be easily validated, like composing standard communications or condensing information. Legal professionals should avoid using AI for tasks that involve high-stakes legal evaluation, such as interpreting intricate legal concepts or offering counsel on delicate matters. AI struggles to grasp human psychology and external influences, showing that it cannot replace human judgement in these areas.

4. Transparency and accountability

Legal practices must maintain clarity about how they implement AI tools. Legal professionals should inform clients about using AI to create legal documents by detailing the types of tools they use and their inherent limitations. “Transparency about AI use is critical to maintain trust and ensure that clients are fully informed about how their legal matters are being handled,” asserts McLeay.

AI governance in public sector

Leaders in Australia’s public sector prepare to navigate the profound implications of integrating AI into legal practices, particularly concerning data privacy, cybersecurity, and governance. As AI tools increasingly integrate into public sector legal services, leaders must implement strong policies to safeguard sensitive data while leveraging AI’s capabilities to enhance efficiency and decision-making.

Public-sector organisations must establish data governance frameworks that align with current cybersecurity standards to tackle risks associated with AI, including vulnerabilities in cloud storage and data analytics. AI tools must adhere to stringent data protection standards to safeguard individuals’ personal information and maintain public trust. The public sector can enhance the advantages of AI technology by embracing an innovative strategy for AI governance while protecting against possible threats to data security and privacy.

As artificial intelligence advances, the legal profession and the public sector must evolve their policies and practices in response. AI technologies advance swiftly, demanding continuous assessment of their ethical and practical consequences, particularly regarding data privacy, cybersecurity, and legal oversight. Leaders in the public sector must stay updated on advancements in artificial intelligence, ensuring they approach the adoption of new technologies with careful consideration and adherence to existing data protection and security regulations.

The legal profession is transforming as AI significantly enhances efficiency and decision-making capabilities. The integration process demands meticulous attention, particularly in safeguarding sensitive information and maintaining ethical principles. The public sector actively steers the responsible application of AI in legal services, ensuring security and transparency throughout its deployment. Leaders in the public sector prioritise data privacy, cybersecurity, and data governance to create an atmosphere where AI drives innovation while preserving public trust and adhering to legal standards.

Editors Publicspectrum

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