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A U.S. federal judge ruled that supervising partners are personally liable for AI-generated errors in court filings by their teams — extending sanctions exposure up the law firm hierarchy for the first time.
Legal AI platform Legora has reached a $5.6 billion valuation in its latest funding round, intensifying its rivalry with Harvey AI as institutional law firms commit serious capital to AI-assisted legal work.
AI hallucination incidents in legal filings are now documented at four to five new cases per day — and courts are considering mandating hyperlinked citations to catch fabricated sources at time of filing.
Courts are now sanctioning lawyers for AI-generated fake citations at four to five cases per day — a rate that has transformed a slow-building professional risk into an institutional emergency for law firms.
Alston & Bird's April 2026 AI Quarterly finds courts issuing consequential AI rulings without a coherent framework, including a privilege-destroying ruling for law firms using commercial AI tools.
Major U.S. law firms are warning clients that sharing legal communications with AI chatbots could waive attorney-client privilege, following a ruling in which ChatGPT conversations were deemed potentially discoverable by opposing counsel.
Courts are now detecting four to five AI-hallucinated legal citations in filings per day, with sanctions exceeding $100,000—and law firms are adding clauses warning clients about attorney-client privilege risks.
Attorneys submitting AI-generated briefs with hallucinated case citations are facing mounting sanctions — while courts split on bans vs. deterrence, and law firms warn clients that chatbot use may destroy attorney-client privilege.
Major law firms are now writing AI privilege warnings into client contracts as courts sanction attorneys for AI-hallucinated citations — two converging risks the legal profession is only beginning to reckon with.