Insurance Companies Alert Law Firms On ChatGPT Impact

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Insurers have entered the discussion around generative artificial intelligence (AI) and its uses in law. Law.com’s Isha Marathe recently reported that Attorneys’ Liability Assurance Society Ltd., a mutual insurance carrier that caters to law firms, sent out a bulletin to its policyholders titled “ChatGPT — Not Ready for Prime Time.” The message advised attorneys that using the GPT-powered chatbot technology could come with legal risks such as potential data privacy violations or the burden of disclosure. Steven Puiszis, a partner at Hinshaw & Culbertson, warned that the risks associated with the use of ChatGPT by law firms were substantial and such memos may continue to circulate in the future.

On a related note, a new trend in right-to-repair litigation has been triggered by a Federal Trade Commission (FTC) agreement with Harley Davidson and other companies in late 2022. As per Law.com Radar, several lawsuits were filed against companies for violating the Magnuson-Moss Warranty Act by requiring repairs and maintenance be handled by company-owned shops. While the number of such cases is limited now, practitioners anticipate more litigation as well as involvement from state attorneys general in the wake of the agreement.

ALAS is a US-based mutual insurance firm that provides risk management solutions to meet the unique challenges of law firms. The company offers a suite of insurance products including Lawyers Professional Liability, Employment Practices Liability, Crime and Cyber Liability, among other policy features. Steven Puiszis is a Partner at Hinshaw & Culbertson LLP and a leading practice in the fields of professional negligence and defense. He is an experienced lawyer and has previously served as a law clerk to the honorable Judge Kenneth Ripple of the United States Court of Appeals for the Seventh Circuit.

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