'The risk for SMBs is not reckless use of AI, but invisible workflow change': Legal firms are falling behind…

Tech Radar
A new report reveals that many organizations, especially SMBs, lack AI policies, leading to risks from unmanaged AI use and invisible workflow changes.

Summary

Research from Nexos.ai indicates that 43% of organizations still have no formal AI policies in place, despite 70% of legal workers already utilizing general-purpose AI. The biggest risk isn't reckless AI use, but rather the “invisible workflow change” occurring as employees integrate AI tools without proper governance. SMBs are particularly vulnerable due to limited resources. The report highlights that workers are frequently pasting sensitive legal documents into public chatbots, risking data security – a primary concern for legal teams (46%), followed by ethical issues (42%) and legal privilege (39%). Nexos.ai recommends that companies implement basic AI policies, starting with defining approved tools and restricting sensitive data, to gain control over AI adoption. They emphasize the importance of human oversight before using AI-generated content in legal applications, warning that efficiency can outpace governance if tools are adopted before policies are established. Ultimately, the report advocates for a proactive approach to AI governance, beginning with simple policies and evolving them as AI integration progresses.

(Source:Tech Radar)

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