LFAIR · Law Firm AI Risk Management · Rose Law Firm

Your firm is already using AI. Do you know where you stand?

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~$110,204

Total monetary consequences, among the larger reported AI-related filing sanctions to date, plus dismissal with prejudice and an order sent to the Oregon State Bar.

20+

Oregon cases already in the national AI-hallucination sanctions database

Jan 2027

Oregon mandatory AI verification rules take effect

The Problem

Three pressures have already converged on your firm

AI risk in legal practice is no longer hypothetical — whether or not your firm ever made a decision to adopt AI.

01

Adoption you didn't approve

AI is already inside firm workflows — through staff, vendors, and software never labeled "AI." You cannot supervise what you cannot see.

02

Courts scrutinizing AI work

Judges are sanctioning unverified AI-assisted filings — hallucinated citations, privilege loss, confidentiality breaches — and the duty to verify is non-delegable.

01

Regulators setting duties

There is no separate AI rulebook. The existing Rules of Professional Conduct already apply — anchored by ABA Formal Opinion 512 and Oregon Formal Ethics Opinion 2025-205.

The issue is not whether AI is useful.
It's whether your firm can govern it — and prove it.

Courts Are Not Waiting

The cost of getting it wrong

Federal and Oregon courts have already ruled: the duty to verify is non-delegable. The lawyer who signs owns every citation.

Wadsworth v. Walmart Inc, 348 F.R.D. 489 (D. Wyo. 2025)

$3,000

+ pro hac vice revoked · co-signers fined $1,000 each

One attorney used an AI platform to generate case law and never checked it — 8 of 9 cited cases did not exist. Two colleagues let their e-signatures ride along on the motion and were sanctioned too.

The Lesson: every signature is a certification. Your name owns the citations, even if someone — or something — else drafted them.

Gurpreet Kaur v. Desso, No 9:25-cv-726 (AMN), 2025 LX 243427 (N.D.N.Y. July 9, 2025)

$1,000

+ court-ordered CLE on ethical AI use

Counsel drafted a brief with a general AI tool, knew AI can fabricate quotations, filed without verifying — then did nothing after the government flagged the fabrications.

The Lesson: knowing AI fabricates and skipping the check is an aggravating factor, not a defense. Rule 11 is judged objectively.

Couvrette v. Wisnovsky, No. 1:21-cv-00157-CL, 2025 LX 645728 (D. Or. Dec. 12, 2025)

≈ $110,204

+ dismissal with prejudice · order sent to the Oregon State Bar

Three summary-judgment briefs contained 15 citations to nonexistent cases and 8 fabricated quotations. Local counsel whose participation was merely nominal was separately assessed ≈ $14,206.

The Lesson: supervision cannot be nominal. Verification and candor duties reach every lawyer whose name is on the filing.

Figures drawn from public court records and reported decisions; amounts are date-sensitive and source-dependent.

 
5-Minute Self-Assessment

See where your firm stands — right now

No sign-up. No commitment. One question at a time.

Question 1 of 5
 

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Your snapshot

Here's where your firm stands

Low
Moderate
Elevated

This is a snapshot, not a full assessment. The LFAIR audit goes deeper — across tools, terms, policies, filings, and insurance.

How We Help

The LFAIR Audit — a repeatable, team-based review

We built LFAIR because we needed it ourselves. Rose Law Firm has used AI since 2023, and the audit applies the same discipline the firm runs internally to yours. Led by Adam D. Rose — Founding Partner, Harvard Law, Oregon Super Lawyer 2022–2026 — and delivered by a dedicated team.

 
Find

Inventory every AI tool in use — including shadow and embedded AI.

Assess

Classify risk by tool and data; review DPAs, terms, and subscription tiers.

Control

Approve tools, restrict client data, and build the verification workflow.

Train

Update engagement letters; train staff on the actual tools they use.

Document

Build the audit record and review it on a recurring cycle.

Assess

Implement

Document

"Most firms can identify that AI is risky. Fewer can document that they're managing it."

Free resource

Take the full checklist with you

The LFAIR 10-Point AI Governance Checklist covers the areas every law firm should have documented before using AI — developed by the Rose Law Firm LFAIR team.

01   Do you know every AI tool currently in use at your firm — including the ones you didn’t approve?          
02  Have your engagement letters been updated to reflect how your firm uses AI today?
03  Does your E&O insurance accurately represent your firm’s current AI practices?

Plus 7 more across policies, court filings, client consent, and supervision.

No email required. Opens as a PDF.

The LFAIR Audit

What the LFAIR audit actually covers

AI tools & shadow AI

We identify every AI tool in use across your firm, including ones that weren’t formally approved, and review their terms and data handling practices.

Policies & engagement letters

We review your existing documentation — or help you build it — to ensure your AI use is disclosed, governed, and defensible.

Court filings & verification

We assess your current workflows against Oregon court requirements and emerging verification standards taking effect January 2027.

Insurance & E&O

We review whether your AI practices are accurately represented in your coverage — a gap that has caught firms off guard in recent claims.

Delivered as a risk assessment, prioritized recommendations, and a practical governance framework.

 

Get started

Ready to see the full picture?

Schedule a no-obligation scoping call. We’ll walk you through what the audit covers and whether it’s the right fit for your firm.

No commitment required. Someone from our team will be in touch within one business day.