As the use of generative artificial intelligence (GenAI) spreads across the legal profession, it is increasingly important for legal departments to understand the use of GenAI tools by outside counsel. This is critical for Legal to assess possible privacy and confidentiality risks, and to gauge the potential effect of their law firm’s use of AI on efficiency, costs, and billing.
The following Top 10 questions provide a broad yet manageable first-pass assessment for initial conversations or RFPs. They target the highest-risk areas first — data security, professional responsibility, quality control, and cost transparency. The answers will help to establish mutual understanding and align expectations between the client and the law firm regarding how such technology will be used.
It can also help in-house counsel determine if there are matters for which they need the firm to adopt a special approach (or exclusion) regarding its use of AI. It should also help determine whether the firm’s use cases raise potential concerns and require deeper diligence.
Green flags to look for: Clear policies, named accountability, opt-in controls, systematic quality checks, and transparent billing.
Signals that should prompt further discussion: Vague responses, no written policies, inability to confirm data exclusion from training, or refusal to itemize AI-assisted billing.
These 10 questions are a starting point. You may be interested in a more detailed list, either for your initial outreach or as a follow-up.
Note: These questions were prepared with the assistance of a GenAI tool. Thanks to Spiwe L. Jefferson, CLO of Moyana Music, LLC, and Joel D. Bush of Kilpatrick Townsend & Stockton LLP for review and input on this resource.
See also: Sample Guidelines for Outside Counsel.
Gain further insights on in-house teams' use of AI: Generative AI's Growing Strategic Value for Corporate Law Departments — Survey Results
For more helpful ACC resources on AI, check out the ACC AI Center of Excellence for In-house Counsel.