As technology continues to evolve, law firms are increasingly leveraging artificial intelligence (Gen AI) to enhance productivity and efficiency. However, this rapid adoption has introduced new challenges, particularly with the rise of Shadow AI. In this comprehensive blog post, we will explore the impact of Gen AI on law firms, the issues surrounding Shadow AI, and practical solutions to manage these risks.

Enhancing Productivity with Gen AI in Law Firms

Gen AI has significantly transformed the legal industry. Law firms are utilizing Gen AI for various tasks, including legal research, document review, contract analysis, and more. Tools like Chat GPT, Bard, and Bing Chat are becoming indispensable for legal professionals, offering numerous benefits:

1. Efficiency: Gen AI tools can process large volumes of data quickly, enabling lawyers to complete tasks faster and with greater accuracy. For instance, Gen AI-powered legal research tools can sift through thousands of case laws and statutes in seconds, providing relevant results that would take hours to compile manually.
2. Cost Savings: By automating repetitive tasks, Gen AI reduces the time lawyers spend on mundane activities, allowing them to focus on more complex and valuable work. This not only improves productivity but also reduces operational costs for law firms.
3. Improved Accuracy: Gen AI algorithms can analyze documents and identify errors or inconsistencies that might be overlooked by human reviewers. This leads to higher quality work and reduces the risk of costly mistakes.
4. Enhanced Client Service: With Gen AI handling routine tasks, lawyers can dedicate more time to client interactions and strategic planning. This improves client satisfaction and strengthens client-lawyer relationships.
5. Innovative Services: Gen AI enables law firms to offer new services, such as predictive analytics for case outcomes or automated contract generation, providing a competitive edge in the legal market.

The Emergence of Shadow AI in Law Firms

Despite the advantages, the rapid adoption of Gen AI has also led to the emergence of Shadow AI. Similar to Shadow IT, Shadow AI refers to the use of Gen AI applications and tools without the knowledge or approval of the IT or security departments. This can pose significant risks to law firms, including data breaches, compliance issues, and ethical concerns. Hence, cybersecurity remains a critical aspect for law firms providing legal services.

Shadow IT Redux: The Rise of Shadow AI

Shadow IT is the use of IT-related hardware or software by a department or individual without the knowledge of the IT or security group within the organization. This includes cloud services, software, and hardware used outside the sanctioned IT environment. Now, we face a similar challenge with Shadow AI.

In 2023 & 2024, the conversation at law firms rapidly turned to controlling the use of Shadow AI as lawyers gravitated with haste to using Gen AI. The concern is the lack of visibility into how many employees are using Gen AI and for what purposes. Without proper oversight, this can lead to unauthorized data sharing, clients’ sensitive information leakage, privacy violations, and potential security breaches. Hence, there is a need for controlled usage of public LLMs through Gen AI governance.

Shadow AI- Navigating the Unseen Risks in Cybersecurity

Tracking Shadow AI: The Hidden Challenge

Gen AI is everywhere, but it’s not always visible. Gen AI security of publicly available tools is still a challenge. We forget that Gen AI is embedded in video conferencing programs, many legal research programs, e-discovery software, browsers, and smartphones. Sometimes, it is more apparent when using tools like Chat GPT, Bard, or Bing Chat, Canva. However, in many instances, Gen AI integration is subtle and goes unnoticed.

One of the challenges in tracking Shadow AI is the reluctance of employees to disclose their use of Gen AI tools. They may fear reprimand or simply prefer to keep using the tools that enhance their productivity. This creates a scenario where Gen AI usage is widespread but largely unmonitored. 

Has your law firm authorized you to utilize a Gen AI tool? There’s the rub. In general, employers are often unaware of what Gen AI tool is being used by their employees. Are these apps built using Gen AI secure? As the employees like their Gen AI tools because of increased productivity – you might send a survey asking employees.

[Check out Altimet Security’s Shadow AI prevention tool] – a button with a demo meeting link.

Issues and Risks Associated with Shadow AI

Shadow AI presents several problems and issues for law firms:

1. Data Security Risks: Unauthorized Gen AI applications can access sensitive client information, leading to data breaches and loss of client trust. Without proper security measures, these Gen AI tools can become entry points for cyberattacks.
2. Compliance Violations: Law firms must adhere to strict regulations regarding data privacy and security. Unapproved Gen AI applications can lead to non-compliance with laws such as the General Data Protection Regulation (GDPR) or the California Consumer Privacy Act (CCPA).
3. Ethical Concerns: The use of Gen AI in legal practices raises ethical questions, especially if Gen AI tools are used to make decisions without proper oversight. Ensuring that Gen AI applications are used ethically and responsibly is crucial for maintaining the integrity of legal practices.
4. Lack of Control: Shadow AI means that law firm leadership and security teams lack control over the Gen AI tools being used. This can lead to inconsistent practices and increased risk of errors.
5. Client Trust: Clients expect their information to be handled with the utmost care and security. The unauthorized use of Gen AI tools can undermine this trust and damage the firm’s reputation.

Solutions to Mitigate Shadow AI Risks

To address the issues posed by Shadow AI, law firms need to implement comprehensive strategies that include policies, traIning, and monitoring. Here are some practical solutions:

Establish Gen AI Usage Policy

Having a clear Gen AI usage policy is essential. This policy should outline what is and is not allowed when it comes to using Gen AI tools. It should cover:

• Authorization: Specify which Gen AI tools are approved for use and under what conditions.
• Transparency: Ensure that employees disclose their use of Gen AI tools and obtain necessary approvals.
• Client Notification: Require lawyers to inform clients if Gen AI tools are being used in their casework and obtaIn consent.
• Data Security: Prohibit the sharing of confidential information with Gen AI tools and ensure that data is protected according to industry standards.
• Ethical Guidelines: Establish ethical guidelines for the use of Gen AI, ensuring that decisions are made with human oversight and accountability.

Enhance Employee Training Programs:

Training employees on the risks and proper use of Gen AI is crucial. This can be achieved through:

• Cybersecurity Awareness Training: Incorporate information about Shadow AI into regular cybersecurity training sessions. Emphasize the importance of protecting client data and the potential risks of unauthorized Gen AI use.
• Gen AI-Specific TraIning: Provide training on the specific Gen AI tools that are approved for use, including how to use them securely and ethically.
• Scenario-Based Learning: Use real-world scenarios to illustrate the potential risks and consequences of Shadow AI. This can help employees understand the importance of following policies and procedures.

https://www.altimetsecurity.com/blog/unveiling-shadow-ai-prevention-understanding-its-presence-in-organizations/

Utilize Shadow AI Prevention Tools

To effectively manage Shadow AI, law firms can leverage specialized tools designed to detect and prevent unauthorized Gen AI usage. These tools provide full visibility into the applications and devices accessing the firm’s network. Key features include:

• Gen AI Activity Monitoring: Track Gen AI usage across the firm. At Altimet Security, we are developing a 360-degree dashboard designed to provide comprehensive visibility into Gen AI activities, audit logs, risks, data and access logs. This solution is aimed at safeguarding your most critical and sensitive data, including patented information, proprietary data, and copyrights from any public Gen AI tool used by your employees.
• Data Access Controls: Restrict access to sensitive data, ensuring only authorized Gen AI tools can interact with confidential information.
• Anomaly Detection: Identify unusual patterns of Gen AI activity that may indicate unauthorized use or potential security threats. Altimet Security’s ShadowAI prevention tool has a sophisticated feature to automatically notify security teams about unusual patterns while using Gen AI tools
• Reporting and Alerts: Generate reports on Gen AI usage and receive alerts for any suspicious activities, enabling swift response to potential issues.

Implementing these tools can significantly reduce the risk of Shadow AI and enhance overall cybersecurity. [To see a demo of Altimet Security’s ShadowAI prevention tool, click here].

Monitor Gen AI Usage Diligently

Monitoring Gen AI usage is one of the most challenging but essential aspects of managing Shadow AI. Here are some methods to consider:

• Software Monitoring Tools: Use software tools to monitor the applications and devices accessing your network. This can help identify unauthorized Gen AI tools and ensure compliance with your policies.
• Network Scanning: Regularly scan your network for unauthorized software and devices. This can help identify Shadow AI and other potential security risks.
• Employee Surveys: Conduct anonymous surveys to understand the extent of Gen AI usage within your firm. Use this information to adjust your policies and trGen AIning programs accordingly.
• Transparency and Communication: Clearly communicate to employees that their activities may be monitored for security purposes. Ensure that monitoring practices comply with relevant legal and ethical standards.

Do you have any idea how many of your firm employees are using Gen AI? The likely answer is no. We’ve all been so busy exploring what Gen AI can do in our practices that only the largest of law firms are likely to have thought about Gen AI policies, much less tracking the actual use of Gen AI in their firms.

While law firms and companies don’t like reporting on Shadow AI problems, in 2023,  Samsung issued a temporary ban forbidding any unauthorized Gen AI applications after an internal data leak. We are sure similar bans have been issued elsewhere, but that’s the kind of subject that companies and law firms prefer to keep quiet.

Leveraging Shadow AI Prevention Tools

To proactively mitigate the risks associated with Shadow AI, law firms can deploy specialized tools designed to detect and prevent unauthorized Gen AI usage. Altimet Security’s ShadowAI prevention tool offers comprehensive features such as Gen AI activity monitoring, data access controls, anomaly detection, and reporting capabilities. By implementing it, law firms can gaIn full visibility into Gen AI usage across their networks, identify any unapproved applications or tools, and take immediate action to address potential security threats. With robust monitoring and prevention mechanisms in place, law firms can effectively manage the proliferation of Shadow AI and safeguard against data breaches and compliance violations.

Embracing a Culture of Gen AI Governance

In addition to deploying technology solutions, fostering a culture of Gen AI governance is essential for managing Shadow AI effectively. Law firms should establish clear policies and procedures for Gen AI usage, outlining guidelines for authorization, transparency, data security, and ethical considerations. Regular training and awareness programs should be conducted to educate employees about the risks associated with Shadow AI and the importance of compliance with firm policies. Moreover, fostering open communication channels between employees, IT departments, and firm leadership can facilitate the identification and resolution of Shadow AI issues in a timely manner. By promoting a culture of accountability and responsibility, law firms can ensure that Gen AI is used ethically, responsibly, and in alignment with the firm’s overarching goals and values.