Nick Lieberknecht

Atheria Partner Nick Lieberknecht Explores Legal AI Risks in Reuters Feature

Atheria Law partner Nick Lieberknecht was recently published in Reuters with an in-depth article titled, “From Innovation to Exposure: Artificial Intelligence Risks for Legal Professionals.” The piece explores the intersection of generative AI and the legal profession, highlighting both the promise of innovation and the evolving landscape of professional liability and insurance risk.

As both general-purpose tools (ChatGPT/Claude/Gemini) and bespoke AI tools for legal practitioners (CoCounsel/Harvey/Lexis+ AI) become increasingly integrated into legal workflows, Lieberknecht notes that lawyers must remain vigilant about how these tools are used. “AI doesn't cause malpractice; how a lawyer utilizes it does,” he writes, citing recent court decisions, ethical risks, and the growing number of firm and court-level AI policies.

The article outlines key malpractice concerns, including:

  • Failing to verify AI-generated outputs
  • Potential confidentiality breaches
  • Inadequate supervision or delegation
  • The risk of unauthorized practice of law through client-facing bots

Lieberknecht also examines the insurance coverage implications of AI use, particularly under Lawyers’ Professional Liability (LPL) and cyber policies. He flags the risk of exclusions being triggered by intentional acts, contractual liability, or ambiguous policy language where AI-related coverage is neither clearly included nor excluded.

To help legal professionals navigate this terrain, the article offers practical best practices: establish internal AI policies, verify outputs, protect confidentiality, document AI use, and consult insurance brokers to assess emerging AI-specific endorsements.

“In this rapidly evolving area of legal practice, managing the risk of AI is key to unlocking its benefits. Understanding the coverage implications and proactively closing coverage gaps is essential for protecting your legal practice,” Lieberknecht concludes.

Read the full article on Reuters.

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