California lawmakers advance legal ethics and AI regulation bills

California lawmakers are advancing legislative measures to address ethical concerns and technological shifts within the state's legal profession.

Senate Bill 574 aims to regulate the use of generative AI in legal practice. If passed, the bill would require lawyers to personally verify citations in documents and mandate the disclosure of AI use to the court. It would also prohibit the delegation of the practice of law to AI tools and prevent arbitrators from using generative AI for decision-making.

Separately, a bipartisan package of bills has been sent to Governor Gavin Newsom’s desk to combat attorney misconduct. These measures include Assembly Bill 2039, which seeks to increase penalties for lawyers who engage in illegal client solicitation, known as capping, and bars attorneys from prioritizing the interests of private investors who fund lawsuits. The legislation also proposes whistleblower protections for law firm employees and stricter regulations on loans provided to clients.