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Aipedia: Solicitors and law firms
Solicitors may use AI, but the SRA says it does not diminish or transfer professional responsibility, so every AI-assisted output is still the firm's own work. That matters because AI errors in court documents, advice and data handling are already producing regulatory referrals, wasted costs orders and negligence exposure.
Part of: AI in solicitors and law firms
In short
Law firms in England and Wales can use AI if they meet SRA standards. The SRA's "Misuse of AI" warning notice (17 August 2026) focuses on inaccurate court documents, including hallucinated citations, and on client confidentiality. Supervisors and COLPs stay accountable, and the SRA says it can and will act. The Divisional Court in Ayinde (June 2025) told firm leaders to take practical measures. Solicitors' PI is compulsory, and the SRA minimum terms contain no AI exclusion, so negligent AI-assisted work is usually treated like any other negligence claim. Top-up layers and cyber policies can differ.
AI now sits inside most stages of legal work. Firms use generative AI chatbots and research tools to find and summarise law, draft first versions of letters and contracts, mark up counterparties' drafts, review data rooms, run technology-assisted review in disclosure, transcribe meetings, screen clients for anti-money laundering checks, triage enquiries through website chatbots and capture time for bills. Each task carries a different risk profile, which is why this Aipedia section has a page for each.
The regulator is not hostile to the technology. On 6 May 2025 the SRA authorised Garfield.Law, an AI-driven firm running a small-claims debt recovery assistant, after checking its quality control, confidentiality and conflicts processes. Its system cannot propose case law, it acts only once the client approves, named solicitors remain accountable for its outputs and the firm must carry the minimum insurance. In 2026 the SRA also joined the Advisory AI Growth Lab with the LSB, CLC and ICO.
Demand is growing too. Research published by the Legal Services Board on 11 June 2026 found that 70% of adults expect AI to make legal services easier to access, while standards specific to consumer AI legal tools are "nearly nonexistent".
There is no AI-specific rulebook for solicitors. Instead, regulators and courts apply the existing SRA Principles and Codes to AI-assisted work. The main publications are:
| Publication | Body and date | Status | Key point |
|---|---|---|---|
| Misuse of AI warning notice | SRA, 17 August 2026 | Warning notice; the SRA will have regard to it | Accurate court documents, real citations, confidentiality safeguards, accountable supervision |
| Effective supervision guidance, AI section | SRA, updated 12 June 2026 | Guidance | AI outputs need human review, scrutiny and professional judgement |
| Risk Outlook on AI | SRA, 20 November 2023 | Risk report | Hallucination, confidentiality, bias and accountability; engage with insurers |
| Generative AI: the essentials | Law Society, updated September 2025 | Professional body guidance, not regulation | Verify outputs, protect confidential data, check insurance |
| Use of AI in preparing court documents | Civil Justice Council, consultation February 2026 | Proposals; final report expected later in 2026 | Possible declaration on AI use in trial witness statements |
The duties most often engaged are Principles 1, 2, 4, 5 and 7, and Code paragraphs 1.4 (not misleading anyone), 2.4 (properly arguable submissions), 3.2 (competent service), 3.5 (supervision), 6.3 (confidentiality) and 7.2 (justifying decisions). For firms, Code for Firms 2.1 requires effective governance, systems and controls, which the SRA reads as including AI risk.
In Ayinde and Al-Haroun [2025] EWHC 1383 (Admin) the Divisional Court dealt with fictitious authorities in two cases. In Ayinde, five fake cases appeared in judicial review grounds, and wasted costs orders followed against counsel and the law centre; the law centre's chief executive, a solicitor, was referred to the SRA. In Al-Haroun, 18 of 45 citations supplied by the client did not exist, and the solicitor who relied on them unchecked was referred. The court said lawyers must check AI research against authoritative sources and that managing partners must take "practical and effective measures", because guidance alone is insufficient.
The Upper Tribunal in Munir [2026] UKUT 81 (IAC) referred a COLP who signed grounds containing a junior's fake authorities, and said a supervisor who misses a junior's false citations is likely to be more culpable than one who misses their own. It added that uploading client documents to a public AI chatbot breaches confidentiality and waives privilege. Trade press has also reported the Solicitors Disciplinary Tribunal's first AI case, in which a registered foreign lawyer was struck off.
PI is compulsory for SRA-authorised firms. The SRA Indemnity Insurance Rules require qualifying insurance with a participating insurer on the Minimum Terms and Conditions (MTC): at least £3m any one claim for recognised bodies and licensed bodies, £2m otherwise, with defence costs in addition. The MTC permits only a closed list of exclusions, and none refers to AI. Insurers may exclude cyber and data protection matters, but civil liability cover and defence costs must be preserved.
On Apex's reading, an AI-specific exclusion is not available in the compulsory layer, so a negligence claim arising from AI-assisted work is usually handled like any other claim, subject to the policy terms. Regulatory fines are a permitted exclusion, and top-up or excess layers and standalone cyber policies are not bound by the MTC. Our guides on solicitors' PI in 2026 and PI for AI-using professionals explain the wider market.
Apex arranges PI for solicitors and law firms. A broker can review your primary and top-up cover, explain how each layer treats AI-assisted work and help you describe your AI controls clearly at renewal.
Yes. The SRA is outcomes-focused: firms may use AI if they continue to meet SRA standards on accuracy, confidentiality, competence and supervision. The SRA authorised an AI-driven firm in 2025. The warning notice is clear, however, that solicitors remain accountable for AI-assisted work however it was produced.
It is a warning notice rather than a new rule, but the SRA has said it will have regard to it and that failing to consider it risks disciplinary action. In practice it explains how the SRA will apply existing Principles and Code paragraphs to AI use.
No. The MTC has a closed list of permitted exclusions and none refers to AI. Cyber and data protection exclusions are allowed, but civil liability cover must be preserved. Top-up layers and cyber policies are not bound by the MTC and may treat AI differently.
Set a written AI policy covering approved tools, what client data may be used, mandatory citation checks and supervision. Train staff, log AI use on matters, and tell your broker or insurer what you use so cover can be checked against how you work.
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.
