AI Policy for Law Firms: A Simple, Practical Guide

Every law firm using AI needs a short, clear AI policy. It tells staff which tools they can use, what data they can share, and how to check what the AI produces. It does not need to be long. Two or three pages that people actually read beat a thirty page document nobody opens.

This guide explains why your firm needs one now, what to include, what to avoid, and how to make it stick. There is also a free AI policy template you can adapt.

Why your firm needs one now

• Staff are already using AI. Often on personal accounts, with no rules in place. This is shadow AI.
• The SRA expects it. The SRA's August 2026 warning notice reminds firms that solicitors remain responsible for AI assisted work, and that client information should only go into AI systems with proper safeguards. A written policy is the clearest way to show those safeguards exist.
• Client confidentiality. Without clear rules, client data can end up in the wrong tools.
• Consistency. Everyone works to the same standard, from partners to support staff.
• Confidence. People use AI more, and better, when they know what is allowed.

What to include

1. Approved tools. Name the tools staff can use, on which plans, and ban the rest for client work.
2. AI inside other tools. Make clear that AI features in Microsoft 365, case management, transcription and e-signature tools count too.
3. What can be shared. Be specific. For example, anonymised text is fine, client names and personal data are not, unless the tool is approved for it.
4. Risk levels by task. Internal drafting is low risk. Client letters are medium. Court documents and formal advice are high, and need the most checking.
5. Checking outputs. AI can be wrong. Every output used for client work must be checked by a qualified person, and every case or authority checked against the original source. The courts are already acting on this.
6. Who is responsible. The fee earner remains responsible for the work, whatever tool helped. Supervisors are responsible for checking the work of those they supervise.
7. Approving new tools. Who decides, and what gets checked first, such as data processing terms, training, data location and security.
8. Telling clients. Agree when, if ever, the firm tells clients that AI was used.
9. Breaches. How to report a mistake, and how it links to your existing data breach process.
10. Training and review. Who must be trained, and how often the policy is reviewed.

What to avoid

• Too long. If it reads like a contract, nobody will follow it.
• Too vague. "Use AI responsibly" tells staff nothing.
• Banning everything. A total ban pushes AI use into personal accounts, where you have no control at all.
• Ignoring AI in existing tools. Many staff do not realise Copilot or their case management system now has AI built in.
• Writing it once and forgetting it. Tools change fast. Review it every few months.

Making it stick

A policy only works if people understand it. Walk staff through it with real examples from your own work, show them the approved tool, and let them practise. Make it easy to ask questions, and make it safe to report mistakes. That turns a document into a habit.

Free AI policy template

To save you starting from scratch, we have written a free AI policy template for law firms. It has a short policy that everyone at the firm reads, plus appendices covering approved tools, risk levels, a checklist for checking AI output, court work and approving new tools. Download it, add your firm's details and you are most of the way there.

Download the AI policy template for law firms (Word)