AI Legal Watch: September 9, 2024
Client Updates
ABA Releases Formal Opinion on The Use of Generative AI Tools
On July 29, 2024, the American Bar Association (ABA) issued Formal Opinion 512 to provide ethical guidance for lawyers using generative artificial intelligence (GAI) tools in their practice. The opinion tracks a number of issues covered by individual state bar associations, such as New York, New Jersey, and Florida. These guidelines discuss issues ranging from the responsibility of lawyers to keep aware of technology developments (duty of competence) to the responsibility to oversee others working with AI (duty of supervision). Particularly noteworthy is the ABA Opinion’s discussion as to when a lawyer is obligated to disclose AI use to the client.
We currently see clients circulating draft engagement letters working through this same issue (trying to avoid needless AI use disclosure as to the use of Westlaw, Lexis and similar services increasingly relying on AI) and expect these efforts to continue — with the ABA Opinion in mind — as we move forward.
Illinois Enacts New AI Legislation Focused on Employment Issues
State legislatures around the country are currently debating how (and if) to regulate artificial intelligence. Colorado recently became the first state to enact a broad law that seeks to regulate AI comprehensively beginning in 2026; other states have moved more cautiously to regulate the technology in specific contexts (such as child endangerment or political campaigns). Add Illinois to the latter category when, on August 9, 2024, it enacted an amendment to the Illinois Human Rights Act focusing on AI and employment-related issues. Similar to legislation enacted at the municipal level by New York City, the amended Illinois statute broadly defines AI and calls on employers to notify employees of the use of AI in employment contexts ranging from recruitment to promotion to discipline of employees.
As companies implement AI governance programs, they will need to consider regulatory developments at the local, state, federal, and international levels. Much like the development of privacy laws over the last decade — and companies’ reaction to them by building out privacy programs that account for the statutes — we expect companies will shape AI governance programs to reflect AI-related laws as enacted.
A Baker Botts Podcast on AI and Ethics Rules
Baker Botts Partner Maggie Welsh regularly hosts an AI podcast called AI Counsel Code. We invite you to listen to a recent episode called “AI and Legal Ethical Rules” in which she interviews her partner Rich Harper, co-head of the firm’s AI practice group.
For additional information on our Artificial Intelligence practice, experience and team, please visit our page here.
On July 29, 2024, the American Bar Association (ABA) issued Formal Opinion 512 to provide ethical guidance for lawyers using generative artificial intelligence (GAI) tools in their practice. The opinion tracks a number of issues covered by individual state bar associations, such as New York, New Jersey, and Florida. These guidelines discuss issues ranging from the responsibility of lawyers to keep aware of technology developments (duty of competence) to the responsibility to oversee others working with AI (duty of supervision). Particularly noteworthy is the ABA Opinion’s discussion as to when a lawyer is obligated to disclose AI use to the client.
We currently see clients circulating draft engagement letters working through this same issue (trying to avoid needless AI use disclosure as to the use of Westlaw, Lexis and similar services increasingly relying on AI) and expect these efforts to continue — with the ABA Opinion in mind — as we move forward.
Illinois Enacts New AI Legislation Focused on Employment Issues
State legislatures around the country are currently debating how (and if) to regulate artificial intelligence. Colorado recently became the first state to enact a broad law that seeks to regulate AI comprehensively beginning in 2026; other states have moved more cautiously to regulate the technology in specific contexts (such as child endangerment or political campaigns). Add Illinois to the latter category when, on August 9, 2024, it enacted an amendment to the Illinois Human Rights Act focusing on AI and employment-related issues. Similar to legislation enacted at the municipal level by New York City, the amended Illinois statute broadly defines AI and calls on employers to notify employees of the use of AI in employment contexts ranging from recruitment to promotion to discipline of employees.
As companies implement AI governance programs, they will need to consider regulatory developments at the local, state, federal, and international levels. Much like the development of privacy laws over the last decade — and companies’ reaction to them by building out privacy programs that account for the statutes — we expect companies will shape AI governance programs to reflect AI-related laws as enacted.
A Baker Botts Podcast on AI and Ethics Rules
Baker Botts Partner Maggie Welsh regularly hosts an AI podcast called AI Counsel Code. We invite you to listen to a recent episode called “AI and Legal Ethical Rules” in which she interviews her partner Rich Harper, co-head of the firm’s AI practice group.
For additional information on our Artificial Intelligence practice, experience and team, please visit our page here.
ABOUT BAKER BOTTS L.L.P.
Baker Botts is an international law firm whose lawyers practice throughout a network of offices around the globe. Based on our experience and knowledge of our clients' industries, we are recognized as a leading firm in the energy, technology and life sciences sectors. Since 1840, we have provided creative and effective legal solutions for our clients while demonstrating an unrelenting commitment to excellence. For more information, please visit bakerbotts.com.
