In our previous newsletter, we warned that one AI mistake can cost an employee their job. Today, we want us to confront the deeper problem behind that reality: many organisations simply have no governance structure for AI use. Leadership teams assume AI is still a novelty, something junior staff play with on the side. But the truth is different. AI is already in every office, from drafting emails to reviewing contracts, and ungoverned AI use is quietly creating legal and professional risks that are no longer theoretical.
According to Using Generative AI: Key Legal Issues, published by Practical Law on 1 November 2025, generative AI has already become a source of professional misconduct in multiple jurisdictions (Reuters, 2025). Companies are using AI for legal drafting, commercial negotiations, HR decisions, compliance work, and public-facing communication without the necessary safeguards. At LAWSMORE, we see this every week when young lawyers and corporate teams reach out after something “small” goes wrong.
AI governance matters now because the absence of rules is itself a rule. It invites carelessness, exposes organisations to liability, and creates an environment where even the most well-meaning staff can unintentionally cause damage. The good news is that governance does not have to be complicated. Every workplace, whether a law firm, a bank, an NGO, or a school, can begin with three foundational structures we employ at LAWSMORE to train our clients.
1. AI Verification Protocols
Generative AI can produce output that looks real and sounds authoritative but is entirely false. A 25 July 2025 paper titled Research on Security Risks and Supervision of Generative AI Systems found that the risk of inaccurate or misleading output remains significant, even in advanced models (ACM Digital Library, 2025). At LAWSMORE, we teach users to treat every AI output as “untrusted until verified.” Proper verification means:
- checking facts against reliable sources
- confirming citations
- requiring human review before anything is shared or published
- ensuring AI drafts remain drafts, not final work
Skipping these steps is not efficiency. It is hidden liability.
2. AI Confidentiality Rules
Confidentiality is the most ignored AI risk. A Legal Practice blog from 31 October 2025 warned that free public AI tools cannot guarantee protection of sensitive data, and even flagged lawyers who unknowingly exposed client information while using them for research (Legal Solutions, 2025). To stay safe, organisations must:
- prohibit staff from pasting sensitive data into public AI tools
- anonymise all inputs
- rely on enterprise or private AI deployments
- train teams on data sensitivity and privacy obligations
Once confidential data enters an AI system, the responsibility belongs to the organisation, not the AI company.
3. AI Governance Policy
A simple written policy can be the difference between safety and organisational disaster. Research published on arXiv in 2025 shows that accountability in AI use depends on governance structures, not good intentions.
A strong AI governance policy must answer LAWSMORE's six key questions built around the 5Ws and H:
- What AI tools are allowed?
- Who can use them, and who must review AI-generated work?
- When must AI use be disclosed?
- Where is AI-generated content stored and protected?
- Why is the organisation using AI, and what risks is it avoiding?
- How are AI outputs verified, corrected, logged, and approved?
Any organisation that cannot answer these six questions is operating with blind spots that will eventually become liabilities.
The Stakes Are Rising
Regulators are no longer patient. On 7 June 2025, a UK judge warned that lawyers who submit AI-generated fake cases could face contempt of court (AP News, 2025). Similar warnings are emerging in Australia, the United States, and Canada.
The legal world is shifting from reaction to prevention. AI governance is no longer optional. It is a legal necessity.
The Path Forward
AI is not the enemy. The real threat is using it without rules. If we want to benefit from AI in our offices, courtrooms, and institutions, we must create structures that keep us safe. Verification protocols protect truth. Confidentiality rules protect people. Governance policies protect organisations.
Those who act now will lead the future with confidence. Those who delay will be shaped by risks they did not see coming. AI is already here. Responsibility must follow.
LAWSMORE is ready to guide your organisation through safe AI adoption. Contact us to begin.