US States Enact Laws Regulating AI in Legal Practice
California and New York are implementing new laws to regulate generative AI use in court filings and hold chatbot companies liable for unlicensed legal advice.
The United States legal industry is shifting toward AI integration, leading to new legislative efforts to define liability and professional supervision. These changes follow a rise in court sanctions against attorneys in 2025 for filing briefs containing AI-generated errors.
California enacted Senate Bill 574 on September 30, 2026, which requires lawyers to disclose the use of generative artificial intelligence in all court documents. Simultaneously, New York State is considering Bill S7263. This proposed legislation would hold AI chatbots and their operating companies liable for providing legal advice if such actions would be illegal for an unlicensed person.
Practitioners such as Robert J. Scott of Monjur advocate for a hybrid model to manage these risks. Under this approach, AI provides speed and efficiency while licensed attorneys maintain non-delegable responsibility for verification and oversight to prevent hallucinations and context drift.
