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Report on Artificial Intelligence in the Legal Profession

The State Bar of Michigan published its comprehensive special report assessing potential risks and benefits of the use of artificial intelligence on the legal profession in June 2025. The report, “Transforming the Legal Profession in the Age of AI,” offers important insight into how AI can, is, and will impact the practice of law, outlines important ethical considerations, dissects the intersection of AI with unauthorized practice of law and access to justice, and looks at developing public policy issues.

“This analysis is designed to help all Michigan attorneys to move forward with confidence, to continue to adapt and evolve, and to better understand how fundamentally AI will impact our world and our profession,” said Joseph P. McGill, president of the State Bar of Michigan and chair of the Board of Commissioners’ AI Workgroup, which authored the report.

The AI report is intended to be a living document that is updated as AI continues to evolve and as the legal profession continues to better understand the potential and the ramifications of AI. The report outlines attorneys’ obligation to understand AI, to consider how AI might help them better serve clients, and to be aware of all ethical considerations related to the use of AI in their legal practice.

WHAT'S INSIDE


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Artificial Intelligence is growing at a rapid pace within the legal field and lawyers must embrace change despite their history of resistance to change the traditional ways when practicing law. AI tools are assisting lawyers in automating manual processes they never thought were possible, allowing lawyers to become more efficient and productive. Prior to analyzing how AI is changing the legal landscape, it first begs the question what is AI? There have been various definitions given to the term AI, but all definitions surround a common theme on the fact that AI uses technology to automate specific types of tasks that involve intelligence when performed by a human. For example, historically, humans may play chess, author novels, create art, or speak other languages, which requires use of higher cognitive capabilities such as reasoning, decision-making, imagination, processing, meaning, and context.[1] As AI evolves, so must legal professionals.

EXECUTIVE SUMMARY

Artificial Intelligence is growing at a rapid pace within the legal field and lawyers must embrace change despite their history of resistance to change the traditional ways when practicing law. AI tools are assisting lawyers in automating manual processes they never thought were possible, allowing lawyers to become more efficient and productive. Prior to analyzing how AI is changing the legal landscape, it first begs the question what is AI? There have been various definitions given to the term AI, but all definitions surround a common theme on the fact that AI uses technology to automate specific types of tasks that involve intelligence when performed by a human. For example, historically, humans may play chess, author novels, create art, or speak other languages, which requires use of higher cognitive capabilities such as reasoning, decision-making, imagination, processing, meaning, and context.[1] As AI evolves, so must legal professionals.

Lawyers must understand how to balance the risks and benefits of AI in law and in their legal practice. Lawyers may use AI in a variety of ways, including improving their practice, completing their administrative and operational responsibilities, and providing better service to their clients. AI has already begun to transform the legal landscape including within the areas of document review and analysis, legal research, predictive analytics, contract management, and more. Manual processes are being replaced with technology, making lawyers more efficient and productive.

AI offers several benefits, such as the efficiency of electronic storage, the expediency of legal research, and the productivity boost from eDiscovery. Lawyers have already recognized these benefits and will continue to see increased returns as AI tools expand their knowledge based on input data. However, it is crucial to remember that AI tools are not infallible. Lawyers must remain aware and responsible for the tools they use, ensuring the quality of output and accuracy of results.

PRACTICE MANAGEMENT

AI will transform the practice management area of the legal field in a variety of ways. However, artificial intelligence in the legal field further brings forth several complex ethical questions, challenging lawyers to navigate issues such as competence, diligence, confidentiality, fees, and other principles. Various state bars have issued ethics opinions and resources to help legal practitioners address these evolving ethical concerns.

Lawyers require skills such as analytical and research abilities, attention to detail, persuasive and written communication, organizational and interpersonal skills, technical knowledge, and financial acumen. AI’s goal is to provide some of these required skills through technology. However, lawyers must determine which programs work within the confines of the ethical rules and which additional skills they need to develop to adhere to their ethical requirements.

ETHICS

The integration of AI in the legal field requires a careful balance of embracing technological advancements while maintaining adherence to ethical standards. Lawyers must stay informed about the evolving ethical landscape to provide the best possible service to their clients.

UNAUTHORIZED PRACTICE OF LAW

While the use of AI brings forth many advantages, lawyers and the public must also consider its use and whether the use of AI impacts the question of unauthorized practice of law. The paramount theory behind prohibiting nonlawyers from practicing law centers on protecting the public. Michigan’s UPL statute’s[2] purpose is to protect the public from untrained legal counsel and incorrect legal advice. For an individual to commit UPL in Michigan, it must be found that they counseled or assisted in matters requiring legal discretion and profound legal knowledge. However, the availability of AI services providing legal information is already raising novel questions about the line between providing legal information and engaging in the unauthorized practice of law (UPL). This has made it clear that UPL enforcement will need to be flexible, potentially shifting focus from strict enforcement to public education about the risks of relying on AI for legal advice and the benefits of consulting trained lawyers.

ACCESS TO JUSTICE

The use of AI may also begin to open access to the justice system in ways it has not seen before. Access to justice is a fundamental principle of the rule of law. Without it, individuals are unable to have their voices heard, exercise their rights, challenge discrimination, or hold decision-makers accountable. Despite its importance, a 2022 report by the Legal Services Corporation revealed that low-income individuals did not receive enough legal help for 92% of their legal issues. These civil legal needs often include essential matters such as housing, education, health care, income, and safety. While debates continue about the role of AI in the legal world, AI-based programs have already been developed and implemented, particularly in the access to justice arena. These programs may serve as a testing ground for addressing unmet legal needs in areas where traditional legal resources are limited.

The potential for AI to bridge the access to justice gap continues to be explored. Valid arguments support the use of AI-based programs to increase access to justice, but there are also legitimate concerns. These concerns must be carefully considered to ensure that AI tools are used effectively and ethically to serve the public.

REGULATING AI

With the daily changes of AI, it can be difficult to see beyond the horizon particularly when a lawyer is simply attempting to keep up with the changes. However, the rapid evolution of AI-based programs has outpaced efforts to regulate their development and use. As of now, Michigan has only enacted two statutes concerning AI, both related to the use of AI-generated content in election materials. However, additional regulations will undoubtedly be required. Several states have already begun exploring amendments to court rules and rules of professional conduct. These efforts aim to provide guidance and regulation on how AI should be used by lawyers.

The SBM should remain involved in monitoring AI-related issues in the legal profession, including regulations and legal developments. By doing so, SBM can help its members uphold the law and meet their professional and ethical obligations while being updated on legislative activity that may impact the use of AI tools in legal practice.

RECOMMENDATIONS

To ensure that members of the Bar remain current on the evolving world of AI and its impact on the legal field, the AI Workgroup offers the following recommendations:

  • SBM should provide relevant, up-to-date information for attorneys on AI using a variety of means, including demonstrations, webinars, publications, and other communications tools. As technology changes, SBM should work to make sure that the information available to members remains relevant.
  • SBM staff in ethics, UPL, practice management, justice initiatives, lawyer services, and public policy should stay abreast of legal developments of AI so that they can be a resource to attorneys and the public on issues involving AI and the practice of law.
  • SBM should explore collaborations with other relevant entities as appropriate, such as law schools, ICLE, preferred partner programs, or local bar associations, to provide up-to-date information to members and prospective members to help ensure practice readiness.
  • SBM should assess avenues to provide reliable information to the public on the risks or benefits of the use of AI in place of legal representation.
  • Current SBM committees, including but not limited to, ethics committees, UPL committee, justice initiatives committee, should remain aware of AI development and provide recommendations to the Board of Commissioners as appropriate.

As AI continues to integrate into everyday actions, lawyers must remember that AI is meant to create a response; not speak the truth. Therefore, lawyers must understand not only the benefits of the use of AI but also the risks. SBM plays a vital role in ensuring that legal professionals are informed and prepared to navigate this evolving landscape responsibly.