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Aipedia: Conveyancers and property lawyers
Conveyancers can use chatbots and automated updates to keep clients informed, but anything the chatbot tells a client is treated as coming from the firm. Wrong statements about exchange, completion or deposits can lead to complaints, financial loss and claims.
Part of: AI in Conveyancers and property lawyers
In short
Clients chasing progress are a heavy workload for conveyancing teams, so many firms use portals, chatbots and automated milestone messages. The risk is a chatbot that answers a legal question wrongly, such as whether a buyer can pull out after exchange, or an automated update that says completion is confirmed when it is not. The CLC transparency and explainability Principles expect plain-English explanations and a clear route to raise concerns. A civil liability claim from a client who lost money is usually a PI matter, subject to the terms, but complaint handling and fee reductions usually fall on the firm.
Typical uses include case portals that answer "where are we?" questions, chatbots on the website that answer general questions about the process, automated texts and emails at each milestone, and AI drafting of replies to client emails. Some firms connect the chatbot to the case management system so it can describe the live status of a matter.
The value is real: fewer chasing calls and faster responses. The difficulty is that clients ask the chatbot legal questions, and it answers them.
The CLC's AI and Technology Guidance speaks directly to client-facing tools. Principle 4 (transparency) asks practices to explain in plain English what technology is in use and what data it processes. Principle 5 (explainability) asks practices to describe the level of human oversight and to provide clear and easily accessible routes for clients to raise concerns, including about the practice's use of technology.
For solicitor conveyancers, Code 1.4 prohibits misleading clients, and the SRA Misuse of AI warning notice makes the firm accountable for AI output. The Legal Services Board's research published on 11 June 2026 found consumers want accuracy, informed consent, human oversight, redress and data safety from AI legal tools.
Illustrative scenario: a buyer asks a firm's website chatbot, late in the evening, whether they can still withdraw if their survey raises problems. The matter has exchanged. The chatbot, which has no live case data, gives a general answer that buyers can withdraw before completion. The buyer delays arranging removals and funds, then fails to complete on time and faces a claim from the seller under the contract.
Other plausible problems: an automated message tells a seller that completion has happened when only the funds request has been sent; a chatbot gives a deposit figure from an old quote; or an AI-drafted email reply confirms an exchange date the other side never agreed. Each can cause real financial loss and a complaint.
A client who suffers financial loss because of wrong information from the firm may bring a negligence claim. PI usually responds to that civil liability, subject to the policy terms. Neither the CLC Minimum Terms nor the SRA Minimum Terms mention AI.
Many chatbot problems never become claims. They become complaints, handled first under the firm's own procedure and potentially by the Legal Ombudsman. The time spent handling complaints, goodwill gestures and fee reductions are usually the firm's own cost. Whether a policy responds to an Ombudsman award depends on its wording and the nature of the award. See chatbot insurance for the wider picture.
Chatbots connected to case systems process personal data about buyers, sellers and sometimes third parties. The CLC asks practices to keep client data in approved systems (Principle 9), carry out impact assessments where personal data is involved (Principles 6 and 8), and not to use client data to train AI without consent. Check the provider's terms on retention and training before going live.
If the tool goes further and makes decisions about clients, such as triaging enquiries or declining instructions automatically, the reforms to automated decision-making in s.80 of the Data (Use and Access) Act 2025, in force since 5 February 2026 under SI 2026/82, may apply. Law firms facing similar questions are covered in AI chatbots and client intake for law firms, and estate agents in AI chatbots for viewings and enquiries.
Apex arranges PI for conveyancers and can explain how your cover treats client-facing AI. See AI in conveyancing and AI phishing and completion fraud.
Clients are likely to treat it that way, and the firm is accountable for what its tools tell clients. Restrict the chatbot to process information and make it easy to reach a person for anything about the client's own position.
PI usually responds to civil liability claims for financial loss, subject to the terms. Complaint handling time, refunds and fee reductions are usually the firm's own cost. Whether an Ombudsman award is covered depends on the wording.
It is safer if it cannot. Exchange and completion are legal events with financial consequences, so confirmation should come from a person who has checked the position. Automated messages can follow once a person has recorded the milestone.
Principle 4 asks for plain-English explanations of the technology and data used. Principle 5 asks practices to explain human oversight and provide clear routes for clients to raise concerns, including about the technology itself.
Tell us about your firm and the work you do. A broker will review how your current PI treats AI-assisted work, or arrange new cover. No fee for a quote. Or call 0117 325 0027.
Start a PI quote Request a callbackApex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information about how AI is used in the profession and how insurance may respond. It is not legal, regulatory or insurance advice on your circumstances, and it does not guarantee that cover will be available or on what terms.
