Lawyer Tasha Dickinson receives calls weekly from clients seeking legal advice based on information they got from AI chatbots like ChatGPT. While some hesitate to admit it, she can often tell from the questions they ask.
One client, a Florida resident, asked Dickinson about setting up a community property trust to help save on taxes for heirs. The catch? His wife had recently passed away. Dickinson had to explain that a community property trust is typically between a husband and wife. There was silence on the other end of the line. This highlights a critical issue: AI can suggest strategies that sound good in theory but may not apply to individual situations.
Many high-net-worth clients are turning to AI not just for information but also to challenge their lawyers’ advice. Some lawyers appreciate the informed questions but find that it complicates their work. Robert Strauss, a lawyer at Weinstock Manion, pointed out that clients sometimes upload trust documents to AI systems and return with lengthy lists of questions. He noted that this extra scrutiny can consume more time than needed without yielding helpful suggestions.
The misuse of AI raises serious concerns about data privacy. Clients are inadvertently sharing sensitive information, which can jeopardize attorney-client privilege. In a notable case, a federal judge ruled that discussions about a legal defense strategy with an AI chatbot were not protected. This has caused lawyers like Strauss to revise client contracts to warn them against using AI, as it could void that important privilege.
Dan Griffith from Huntington Bank cautioned that asking AI for legal guidance can backfire, especially in sensitive matters like prenuptial agreements or asset transfers. Even though wealthy clients can afford top-tier legal advice, they are drawn to AI’s convenience and potential cost savings. Dickinson noted that many clients feel overconfident in their understanding of complex legal matters, leading to misguided reliance on AI.
This isn’t a new problem. Clients often bring in suggestions from friends or articles, akin to “cocktail party talk.” But the current situation is different. Many lawyers are also using AI, leading to headlines about errors like briefs containing fake citations.
Ed Renn from Withers mentioned another example: A client wanted to transfer unlimited assets to a foreign-born spouse based on AI advice, which wouldn’t have worked without a specific trust. This underscores the saying, “garbage in, garbage out.” In complex topics, AI can easily mislead.
Complex estate planning requires nuanced conversations. Griffith emphasizes that these discussions cannot be reduced to simple yes-or-no answers. Instead, they should delve deeper into relationships and situations. AI tends to chase quick solutions rather than consider the intricacies of human circumstances.
As AI technology continues to advance, both clients and lawyers must navigate this evolving landscape with caution. Understanding when AI can assist and when it can hinder is essential for making informed decisions. Recognizing the limitations of these tools is vital for anyone dealing with complex legal matters.
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