"Since the public release of ChatGPT in November 2022, solo and small law firms have been inundated with ethics opinions by the ABA and 20 different states regarding artificial intelligence use and client disclosure obligations. While these ethics considerations are important, the real disclosure requirements that firms need to worry about are emerging state laws that mandate specific AI disclosures and that carry concrete penalties for noncompliance."
"The 2025 amendments through SB226 modified the mandatory disclosures to apply only to "high-risk artificial intelligence interactions" which include "financial, legal, medical, or mental health advice or services." This means that if a solo practitioner uses an AI chatbot or phone receptionist to handle initial client inquiries, schedule consultations, or provide preliminary legal information, they must clearly disclose the AI's involvement."
"New Jersey bot law makes it unlawful to use an online bot to communicate with another person in the state "with the intent to mislead the other person about the bot's artificial identity" to incentivize commercial transactions which would encompass an engagement with an attorney. The penalties for violations are substantial: $2,500 for a first offense, $5,000 for a second offense, and $10,000 for each subsequent violation. Similarly, Maine's AI law prohibits use of an AI bot to incentivize a transaction unless users are notified that they are not interacting with a human. Civil penalties of up to $1000 app"
Three states—Utah, New Jersey, and Maine—have enacted laws requiring disclosure when businesses, including law firms, use AI to interact with consumers. These laws can apply beyond state borders and attach specific civil penalties for noncompliance. Utah's AIPA (SB149), amended by SB226 in 2025, restricts mandatory disclosure to high-risk AI interactions, including financial, legal, medical, or mental-health advice, and requires clear disclosure when chatbots or automated receptionists handle client inquiries or scheduling. New Jersey bans bots used to mislead about their artificial identity to spur commercial transactions and imposes escalating fines. Maine requires notice when bots incentivize transactions and creates civil penalties.
Read at Above the Law
Unable to calculate read time
Collection
[
|
...
]