How Generative AI Can Burn Your Law Firm: Avoiding the Risks of Fake Citations and Legal Sanctions

AI Is Smarter Than You—Until It Lies

Generative AI tools have become a common part of legal workflows. But as convenient as they are, they’re not foolproof. Two lawyers recently faced sanctions for relying on AI-generated fake citations. This isn’t just a cautionary tale—it’s a clear warning signal for law firms about the risks of unchecked AI use.

Why AI Can Fail You in Legal Practice

AI models can produce convincing but incorrect information, including fabricated case citations or misleading legal arguments. When left unmonitored, these errors can lead to serious professional consequences, including sanctions, damage to client trust, and reputational harm.

Unlike human lawyers, AI doesn’t understand accuracy or ethics. It generates outputs based on patterns, not facts. This means any AI-generated content must be thoroughly reviewed before use.

Key Steps to Keep Legal AI in Check

• Establish Clear Oversight: Assign specific team members to verify AI outputs before they’re used in briefs, filings, or client communications.
• Train Your Team: Educate lawyers and staff about AI’s limitations and the importance of fact-checking every AI-generated detail.
• Use AI as a Support Tool: Treat AI as an assistant, not a replacement. It can speed up research or drafting but must not replace human judgment.
• Implement Quality Controls: Develop checklists or protocols for reviewing AI-produced content, especially legal citations and precedent references.
• Stay Updated on AI Developments: Keep an eye on AI tool improvements and regulatory guidance affecting legal AI usage.

Don’t Let AI Put Your Firm at Risk

AI’s ability to generate text quickly and convincingly is a double-edged sword. Without proper controls, your firm could face serious fallout from inaccuracies or unethical AI use. The solution isn’t to avoid AI altogether but to build responsible systems around it.

For legal professionals looking to integrate AI safely and effectively, training and clear policies are essential. Explore practical courses that focus on AI tools and legal best practices to strengthen your team’s skills and reduce risks.

Learn more about AI training designed for legal and insurance professionals at Complete AI Training.