City law firms ‘sleepwalking into a crisis’ over AI overreliance

City A.m.
A Positive Group report warns City law firms risk judgment failures as lawyers over-trust AI amid client pressure and hallucination concerns.

Summary

City AM reports that Positive Group warned City law firms are "sleepwalking into a crisis of judgment" by treating AI as an authority rather than a collaborative tool. More than 60% of lawyers reportedly use AI for drafting, research and client delivery, but billable-hour pressure and heavy workloads are encouraging uncritical acceptance of AI outputs.

The report says AI is undermining the traditional apprenticeship model because junior lawyers no longer perform as many foundational tasks, such as document review and basic research, where they previously built judgment and source-checking skills. It also cites hallucination problems, including fake evidence presented to courts, with Pinsent Masons mentioned as one example.

Law firms face conflicting pressures: clients expect sophisticated AI use, competitors are investing heavily in AI systems, and some clients demand AI-enabled work that is still human-validated, cheaper and fully liability-backed. Lawyers quoted in the article argue that critical thinking, creativity and attention to detail remain essential, and that firms must train lawyers to resist automation bias while keeping human judgment as the final safeguard.

(Source:City A.m.)

Executivebiz

Carahsoft to Distribute Zenity AI Agent Governance Platform

Scconline

‘AI is eliminating administrative legal work, not lawyers’: Experts discuss AI’s role in rewiring the in-house legal function at LegalTechTalk 2026

City A.m.

City law firms ‘sleepwalking into a crisis’ over AI overreliance

Ein Presswire

EDRM Releases Information Governance Reference Model (IGRM) v4.1 with Comprehensive Updates for Unified Governance

Aba Journal

AI.Law sues competitor Eve Legal for alleged patent infringement

It Brief Australia

InfoTrack & Legora link AI workflows with legal data

Beforeitsnews

5 Questions That Every Client Should Ask Their Car Accident Attorney Reno NV | The Law | Before It's News

Financialcontent

General Availability of Lexis+ with Protégé in Canada Sets New Standard for Automating Legal Work with Easy-to-Use, Authoritative AI Workflows

The Korea Times

Anthropic opens Seoul office to expand ties with Korean AI ecosystem

Real News Press Agency

Sandstone Announces $30M in Funding to Bring AI Workflow Automation to In-House Legal Teams - Real News hub

National Law Review

Can Legal AI Platforms Predict U.S. Supreme Court Decisions? A Pre-Decision Test in Chatrie v. United States

Business Insider

Crosby releases Redline Bench to evaluate AI models for legal work

Finanznachrichten.de

Litera Announces New Cloud AI Automation to Boost Security for Law Firm Communications, Removing Metadata Risk

Finanznachrichten.de

Wolters Kluwer Brings Libra AI Workflows into InView Legal for Belgian Legal Professionals

Inews

I'm stuck living with my ex-husband - neither of us can afford to move out