Regulating Artificial Intelligence In Legal Practice: Legal And Ethical Challenges For The Legal Profession
Nikhat Saheen, Amity Law School, Amity University, Patna, Bihar
ABSTRACT
Artificial Intelligence (AI) is rapidly transforming the legal profession by assisting lawyers, law firms and legal institutions in legal research, document review, contract analysis, due diligence, drafting and information management. The development of Generative AI has further expanded these applications by enabling AI systems to produce legal summaries, arguments, drafts and other forms of legal content. Although these technologies may improve efficiency and reduce repetitive work, their increasing use also creates significant legal and ethical challenges concerning professional competence, confidentiality, client privilege, accuracy, accountability, algorithmic bias, data protection, intellectual property and the unauthorized practice of law.One of the most important concerns is AI hallucination, where an AI system may generate apparently convincing but factually incorrect information, including fabricated case names, citations or legal propositions. If such information is used by lawyers without verification, it may affect the administration of justice and raise questions of professional responsibility. Similarly, entering confidential client information into external AI systems may create risks relating to confidentiality, privacy, data security and professional privilege.India presently does not have one comprehensive legislation specifically regulating the use of Artificial Intelligence by legal professionals. Instead, the issue is governed through existing legal and professional frameworks, including the Advocates Act, 1961, professional conduct rules, information technology law, data-protection legislation, evidence law and constitutional principles. This paper examines the legal and ethical challenges created by AI-assisted legal practice, analyses the adequacy of the existing Indian framework and compares it with selected international approaches. The paper argues for a balanced, risk-based and technology-neutral regulatory framework that promotes technological innovation while preserving professional responsibility, client confidentiality, human judgment and the integrity of the justice system.
Keywords: Artificial Intelligence, Legal Profession, Generative AI, Legal Ethics, Professional Responsibility, Confidentiality, Data Protection, AI Hallucination, Legal Technology, Accountability, Regulation.
