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From NY State Bar Association Issues Guidelines for AI Use in Legal Practice

How could the NY State Bar Association's AI guidelines affect Greenberg Traurig?

Likely What happens if… A possibility worth considering, not a forecast.

AI guidelines may force Greenberg Traurig to change billing and compliance practices The guidelines issued by the New York State Bar Association require law firms to fundamentally adjust how they bill clients when using AI tools. Specifically, lawyers are told not to bill clients for time saved by using artificial intelligence. Furthermore, while the cost of buying and maintaining AI software can be passed along as a disbursement, it must be tied to a specific client matter and fully disclosed to the client. These rules also place responsibility on supervising lawyers to ensure subordinates comply with ethical standards regarding confidentiality and unauthorized practice.

Reported by 1 independent outlet Written Wednesday
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How it reaches Greenberg Traurig

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The facts so far

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  • Lawyers should not bill clients for time saved by AIabajournal.com
  • AI software costs can be passed as a disbursement only when tied to a specific client matter and when the basis for the charge has been disclosedabajournal.com
  • Supervising lawyers remain responsible for their subordinates’ complianceabajournal.com
  • The guidelines caution against building tools that deliver automated legal services in ways that could amount to unauthorized practiceabajournal.com

Why it matters

For large law firms like Greenberg Traurig, AI adoption is a major driver of operational efficiency and cost reduction. These guidelines directly challenge traditional billing models, requiring firms to rethink how they monetize the time saved by technology. Compliance with these rules is critical, as failure to adhere could lead to ethical violations or professional sanctions.

The guidelines address broader industry concerns, including the risk of biased training data deepening inequities and the severe risk of confidentiality breaches if AI tools mix client information. This sets a new standard for ethical AI use in the legal profession, forcing all firms operating under the jurisdiction to adapt their technology policies and internal oversight mechanisms.

What we don't know yet

  • Will other state bar associations adopt similar guidelines regarding AI billing and usage?
  • How quickly can large law firms implement new internal policies to ensure compliance with the confidentiality rules?

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What would change this answer

Other major state bar associations adopt similar guidelinesThe scope of the operational changes required for Greenberg Traurig would widen significantly, forcing a broader overhaul of firm-wide policies.
The firm develops comprehensive internal AI audit and documentation systemsThe compliance burden related to supervising lawyers and client disclosure could be mitigated, reducing the negative operational impact.

Who else could feel it

Other possible ripples from the same event.

Reporting

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The full eventNY State Bar Association Issues Guidelines for AI Use in Legal Practice Everything aboutGreenberg Traurig

Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.