AI and the Future of Legal Services: IAALS Convening Explores Unlocking Legal Regulation

In November, IAALS held a two-day convening on Regulating AI in the Delivery of Consumer-Facing Legal Services, its fourth in a series of expert convenings designed to align industry leaders around strategies to unlock legal regulation. With the rapid development of generative AI, the legal space has been abuzz with questions about how lawyers should (or shouldn’t) use AI in their practice, how judges might use it in their courtrooms, and how it might outperform law students on the bar exam. How AI might deliver unmediated legal services directly to the public, however, has received less fanfare. This year’s convening sought to explore whether these consumer-facing legal service platforms should be regulated and, if so, how.

The convening brought together 23 experts in the field, including legal tech entrepreneurs, judges, court administrators, state bar representatives, academics, regulators, designers, and private practitioners. Several questions emerged from the group’s discussions, including:

• What is the purpose of legal regulation?
• How is the public using AI tools?
• What is the role of “big tech”?
• Is there a need for national standards?
• How can we measure the quality of legal services (both human- and AI-powered)?
• What are the implications for the unauthorized practice of law?
• How do we ease the tension between encouraging innovation and discouraging bad actors in the space?

There was no consensus on whether to regulate AI generally or in regard to any particular regulatory model; given that AI’s role in the delivery of legal services is both relatively nascent and rapidly evolving, the convening did not set out to create or exclusively recommend any specific regulatory model. Rather, several possible and often intersecting approaches emerged from the discussions, ranging from more soft power and hands-off approaches—such as creating guidance for developers and users of tools, and a coordinated national effort advancing the idea that AI is not the practice of law—to efforts that would require regulatory changes—such as creating regulatory sandboxes or certifications for AI tools.

There was also much that the group agreed upon. Many echoed the need for more data about consumer outcomes—not only about consumer harm as it relates to AI or to legal services writ large, but about consumer benefits and satisfaction. There was also broad agreement that the status quo was unworkable, and that the current regulatory regime—specifically the unauthorized practice of law rules—has exacerbated the access-to-justice crisis we find ourselves in today.

All attendees agreed that there is much more to be done in this space. IAALS will release a post-convening report in Spring 2025 to share deeper insights and to serve as a springboard for more discussion and action nationwide. In the meantime, Jess Bednarz, IAALS’ in-house regulation expert, will be sharing insights from the convening at LSC’s annual Innovations in Technology conference in January. Those interested in the intersections of AI and legal services may also be interested in the post-conference event, which will focus on the opportunities and risks that AI and algorithmic decision-making presents for access to justice. The post-conference event will be held both virtually and in-person at Arizona State University on Wednesday, January 15, following the conference. 

Those interested in connecting with Jess about IAALS’ work on artificial intelligence and legal regulation are invited to reach out at jessica.bednarz@du.edu.

Regulating AI in the Delivery of Consumer-Facing Legal Services is the fourth convening IAALS has hosted to discuss regulatory reform. Its inaugural convening, held in 2019, focused on creating an independent regulator for legal services, which inspired leaders in Utah to form the nation’s first legal regulatory sandbox. As other states began implementing or considering reform efforts, IAALS held a second convening in 2022 to allow leaders from these states to collaborate. In 2023, IAALS hosted its third convening, focusing on lessons learned from these various efforts and recommendations for the future.