AI for Law Firms
Leverage AI for document analysis, legal research, and case preparation—without compromising attorney-client privilege or exposing client data to foreign jurisdictions.
The Challenge: AI vs. Privilege
Law firms face a dilemma. AI tools offer transformative efficiency gains—but most require sending confidential client data to third-party cloud servers, often in foreign jurisdictions.
THE RISK
Privilege at Risk
Uploading privileged communications to third-party AI services may constitute a waiver of privilege. The analysis varies by jurisdiction, but the risk is real:
- • Third-party access may vitiate privilege
- • Terms of service often grant broad data rights
- • Data may be used for model training
- • CLOUD Act creates foreign government access risk
THE COST
Competitive Disadvantage
Firms that avoid AI entirely face mounting competitive pressure:
- • Slower document review
- • Higher associate hours for routine tasks
- • Less comprehensive research
- • Clients asking "why aren't you using AI?"
The practice of law is fundamentally about confidentiality and trust. Any technology we adopt must strengthen—not undermine—these core principles.
— Managing Partner, Magic Circle Firm
Understanding Privilege in the AI Context
The Third-Party Doctrine
Attorney-client privilege protects confidential communications made for the purpose of obtaining legal advice. However, this protection can be waived by disclosure to third parties.
Key Questions for AI Services
- 1. Who has access? Cloud providers, their employees, subcontractors, and potentially government agencies under legal process.
- 2. Is data used for training? Many AI providers use customer data to improve models, creating unknown future exposure.
- 3. What jurisdiction governs? US-headquartered providers are subject to CLOUD Act regardless of data location.
- 4. What do the terms say? Standard enterprise agreements often contain broad data usage rights buried in the fine print.
Professional Responsibility Obligations
Beyond privilege concerns, lawyers have ethical obligations regarding client confidentiality and competence in technology use.
Model Rule 1.6 (Confidentiality)
Lawyers must make "reasonable efforts to prevent the inadvertent or unauthorized disclosure of, or unauthorized access to, information relating to the representation."
Model Rule 1.1 (Competence)
Comment 8 requires lawyers to "keep abreast of changes in the law and its practice, including the benefits and risks associated with relevant technology."
Bar Association Guidance
Multiple bar associations have issued opinions on cloud computing and AI that emphasize due diligence requirements:
- ABA Formal Opinion 477R: Requires understanding of how the technology works and assessment of risks before use.
- SRA (UK): Solicitors must consider data protection obligations and client confidentiality when using AI tools.
- German BRAK: Strongly discourages use of US-based cloud services for privileged materials due to CLOUD Act concerns.
AI Use Cases for Law Firms
Tacitus enables these high-value AI applications while maintaining complete control over privileged materials:
Document Review
Analyze contracts, pleadings, and discovery materials. Identify key provisions, risks, and relevant precedents across thousands of documents.
60-80% time reduction on review tasks
Legal Research
Query your firm's knowledge base—past opinions, memoranda, and research—using natural language. Find relevant precedents in seconds.
Instant access to institutional knowledge
Drafting Assistance
Generate first drafts of standard documents, correspondence, and memoranda based on your firm's templates and style guidelines.
Consistent quality, faster turnaround
Due Diligence
Accelerate M&A due diligence by automatically extracting key terms, identifying risks, and flagging anomalies across data rooms.
Comprehensive coverage, reduced risk
The Tacitus Solution for Law Firms
Tacitus provides AI infrastructure designed specifically for the confidentiality requirements of legal practice.
No Third-Party Access
With Cortex, all processing occurs on hardware you physically control. No cloud uploads, no third-party access, no privilege risk. The AI runs entirely within your network perimeter.
Air-Gapped Option
For maximum security, Cortex can operate completely disconnected from the internet. Ideal for matters involving state secrets, sensitive M&A, or high-profile litigation.
Your Jurisdiction, Your Rules
Cortex sits in your office, subject to your jurisdiction's laws. No CLOUD Act exposure, no foreign subpoenas, no uncertainty about which legal regime applies.
Complete Audit Trail
Every query, every document access, every AI interaction is logged locally. Demonstrate to clients and regulators exactly how their data was handled.
Deployment Options for Legal
Cortex On-Premises
Purpose-built hardware installed in your server room or a colocation facility you control.
- Zero third-party access
- Air-gap capable
- Full privilege protection
Cloud Bridge (EU)
For firms comfortable with cloud deployment but requiring EU jurisdiction and single-tenant isolation.
- EU-only infrastructure
- No US parent company (no CLOUD Act)
- Credits transfer to Cortex
Client Confidence
Using Tacitus infrastructure demonstrates to clients that you take their confidentiality seriously—a competitive advantage in an era of data breaches and regulatory scrutiny.
What You Can Tell Clients
"Our AI system runs on-premises."
Your documents never leave our physical control.
"No US jurisdiction exposure."
Our infrastructure is not subject to the CLOUD Act.
"Your data is never used for training."
The AI model is static—it doesn't learn from your documents.
"Complete audit trail available."
We can show exactly how your data was accessed and by whom.
Ready to Deploy AI Without Privilege Risk?
Let's discuss how Tacitus can help your firm leverage AI while maintaining the highest standards of client confidentiality.