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AI Legal Advice – friend or foe?

Artificial intelligence is increasingly being used to draft contracts, review terms, and even negotiate deals. While AI can be a useful tool for research or initial ideas, relying on it for commercial transactions or legal documents is a serious risk. In this blog we will explore 5 things you must consider before you ask AI to be your solicitor

1. Do you know what to ask?

The main problem is that AI does not understand the law in the way a qualified solicitor does. It generates text based on patterns, not legal judgment. This means it can confidently produce clauses that are outdated, unenforceable, or simply wrong. In commercial matters, small errors in wording can have major consequences, such as unintended liabilities, unenforceable agreements, or loss of key rights.

There have also been a number of cases before the court when AI has generated false information which has then been submitted as evidence for the court to rely on. In 2025, two cases known as Ayinde v London Borough of Haringey and AI-Haroun v Qatar National Bank appeared before the court following the actual or suspected use of artificial intelligence tools to produce written legal arguments or witness statements which included false information (typically a fake citation or quotation). In these cases, the court made it clear that artificial intelligence is a tool that carries with it risks as well as opportunities. Its use must take place therefore with an appropriate degree of oversight, and within a regulatory framework that ensures compliance with well-established professional and ethical standards.

2. Does AI understand your needs?

AI does not understand the full legal context of your situation. English law is highly nuanced, fact-specific, and constantly evolving. An AI-generated document may look correct on the surface but fail to comply with current legislation, case law, or regulatory requirements. For example, two companies may need very different contractual protections, even if the transaction looks similar on the surface. AI cannot ask the right probing questions or spot issues that only emerge through experience.

3. Is AI Regulated?

No, AI cannot give regulated legal advice. In England, solicitors are professionally trained, insured, and regulated by the Solicitors Regulation Authority (SRA). They owe you duties of care, confidentiality, and loyalty. AI tools provide no such protection. If an AI-drafted document causes loss, there is no professional indemnity insurance and no recourse.

4. What happens to your personal data?

Confidentiality is also a concern. Uploading sensitive commercial information into AI systems can expose you to data breaches, loss of privilege, or misuse of confidential material. You have little or no control over where your data is stored or who may have access to it.

5. Why do I need a solicitor?

Ultimately, a solicitor does more than draft documents. A solicitor advises strategically, negotiates on your behalf, identifies risks before they become problems, and ensures your agreements are legally effective and commercially sensible. AI can support legal work, but it cannot replace professional judgment.

In short, using AI alone for commercial transactions is a false economy. The cost of getting it wrong is often far higher than the cost of instructing a solicitor to get it right from the start. In commercial matters, cutting corners can be costly. A solicitor is an investment in certainty, protection and peace of mind.

If you would like to speak with one of our experts on this issue or any other commercial issue, please contact us on 0333 305 7777 or email us at [email protected]

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Lisa Bell (formerly Lisa Martin), LL.B (Director) - Progression Solicitors, Barrow-in-Furness, Cumbria

Written by:

Lisa Bell

Director

The content of this article does not constitute legal advice and should not be relied upon. Content may be subject to change and we accept no liability for individuals relying on the information within this article. Contact a member of our team for legal advice tailored to your individual needs.

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